A common misconception about entrepreneurs is that they are daredevil risk takers, always on the lookout for the next opportunity to take a leap into the unknown. That’s not entirely true. What differentiates smart CEOs is that they are always trying to understand and manage risks; and other astute ways of doing business.
Most businesses fail because the owners fail to estimate risk in business. They overlook the opportunity cost of living in the comfort zone and not attempting to take on new endeavours.
Here are others approaches that set successful business men and women apart from the rest.
- They are looking for ways to work smarter and faster, rather than harder.
In today’s dynamic business terrain, profit taking is not so much about how hard you and your team have worked, but rather how you’ve managed to speed up the process in a smarter and more efficient way. This involves setting ambitious but realistic schedules while taking advantage of advanced tools and software that improve productivity without necessarily working harder. They are more focused on how things are get done rather than the time it takes to get completed.
- They keep an eye on short and long term goals.
Even when they are limited a lack of resources, they don’t let it limit their vision. They are constantly analysing the market to identify a need and seeking for how to they can provide solutions or modify existing offerings to better suit the current needs of the market. For them, the real risk is not taking a risk with new opportunities.
- They think outside the box.
While the average person frowns and get discouraged by problems, the astute business man or woman today pictures such “distractions” as a boulder to climb to higher heights. This means they’re always thinking outside the box and trying to figures out how to bounce back from a setback, get back on their feet and try again with new lessons learnt.
- They learn to accept and embrace risks
Some of the world’s most iconic entrepreneurs were not born natural risk takers. According to a recent study by the Halle Institute for Economic Research, startup CEOs have just about the same risk threshold as the average individual. However, with time they gain higher tolerance levels, often seeking partners to help keep their business running, no matter what lies ahead.
They perfectly understand the saying, “no risk, no gain,” and are keenly aware that breakthroughs, innovations, achievements and rewards are borne out of learning to take risks.
- They concentrate on their strengths
The modern business man or woman is typically versatile in his business niche, but also understands specialization is key for smarter work and improved productivity. Consequently, they hire dedicated talents for various units of the work processes, then they delegate tasks to team members; making sure assigned duties and skill sets of each staff member are properly aligned. The CEO is then able to concentrate on his or her own area of work strength, in addition to management and other small details of operations.