Risk is an element of every successful career path. If you want to be an entrepreneur, you’re going to have to take some risks along the way. Indeed, starting a small business is, in and of itself, a risky proposition. However, there’s a big difference between calculated risks and unreasonable gambles. Here, we’ll help you learn to tell the two apart. Check out these four risks that –– for all intents and purposes –– just aren’t worth taking:
- Letting Talented Employees Walk
All businesses have to deal with some level of employee turnover. It’s just not possible to retain every quality professional who walks through your doors. Still, making a habit of letting talented employees join other organizations is a practice that will end in disaster sooner than later. Essentially, losing top team members to rival organizations is a double-whammy. Consider also that replacing high-ranking employees can prove prohibitively expensive and have a negative effect on company culture and morale. Remember, people are the most vital resource of all.
- Rapid Expansion
It can be incredibly difficult to resist the allure of rapid expansion. After all, business growth is a key to long-term success and viability. Yet, sustainable business growth requires extensive market research, a myriad of scalable solutions, and a comprehensive vision for the future. Rapid expansion, on the other hand, almost always puts a growing business behind the eight ball. Moving into new markets and opening up new locations calls for diligent planning and precise execution. Neither can be accomplished in a rush.
- Taking on Massive Debt
Sometimes, business owners are able to apply and qualify for loans that provide them with a much-needed, short-term cash injection. In such instances, a little debt isn’t a pressing problem. Taking on heavy debt just to keep the lights on, though, won’t make a financial situation any better. Don’t succumb to crippling debt like this if at all possible, because it will hamstring your business.
- Abandoning Core Values
The best companies exist for reasons beyond revenue and the bottom line. A business’s core values speak to the overall mission statement of the company. And employees and customers alike should feel that those values matter, and that they color every decision a business (collectively) makes. When a business owner abandons their core values for profit or other advantages, they risk not only losing out on customers and great employees, but also on the chance to do something special. At the end of the day, selling out is never really worth it.
Whether your business manufactures concrete barriers or you offer legal advice, following these four tips will ensure that you avoid many common pitfalls.