Dare to Venture Beyond? Risk-Taking in Business & Life.

Think about a story where something has gone wrong in your own life that is your own fault.

And it's not about what someone has done to you. Not a bully from high-school, not a bad employer, not a toxic colleague...but you, where have you gone off the rails?

I ask that because as we think about risk taking and success, it is quite often the case that people think successful outcomes and successful people just happen perfectly. Like they have some charmed life or they figure out some magic formula.

No, that's not how it works.

The truth is, the most successful people are those that not only manage risk, but engage in risk and navigate failure actively.

So where have you really failed? And what have you done about it? Or are you scared to take action? Perhaps you're living in a condition of 'paralysis by analysis', where there is excessive over-thinking at the expense of action?

If you talk to psychologists you'll discover that you can’t just think your way into a desired mindset or outcome; taking action is the only way to truly create change. As Rich Roll, will tell you, "mood follows action".

So what actions are you taking to deliver better life and business outcomes for yourself?

We forget this as humans (and what I remind myself daily is) the doing is the reward.

Sometimes things will go my way and sometimes they don't. But the only thing I can get upset about is regret. As that is what I have control over. In the sense, if I didn't do it I have no one to blame but myself.

So, what I mean is, you can always attempt but you cannot predetermine the outcome. You can, however, predetermine the effort, because that is the only thing you have control over. You can't own the results but you can always own the initiative you take.

So, where are you right now? What tools are you deploying to take risks? How are you actively managing failure and growing?

Here are 3 strategies:

• Reach Threshold Energy. A term from physics and chemistry, but it refers to the minimum amount of energy required to initiate a specific process or reaction. In business it is the effort or resources needed to start a new initiative or overcome inertia in action-taking.

  
  

  What's the lowest amount of effort to build enough momentum for your new business division or product line? By knowing the minimum-bar required for momentum helps you manage risk and actively navigate failure by finding low-cost actions that can show whether your product prototype works or not.

  
  

  During my start-up incubator days I remember (circa. 2014) when the cosmetics brand Glossier was formed. It sought to disrupt the traditional beauty industry by engaging directly with consumers and offered products that resonated with their preferences.

  
  

  What threshold energy looked like for them was:

  
  

  1. Community Engagement: Glossier built a strong online community through social media platforms like Instagram. By encouraging user-generated content and feedback, they lowered the activation energy for potential customers to engage with the brand. This approach made users feel involved and valued.

     
     

  2. Minimalist Product Line: The brand started with a curated selection of products that emphasised simplicity and ease of use. This reduced the complexity and decision fatigue often associated with purchasing cosmetics, making it easier for consumers to try Glossier.

     
     

  3. Direct-to-Consumer Model: Glossier utilised a direct-to-consumer sales strategy, which eliminated the barriers of navigating through traditional retail environments. Customers could easily purchase products online, further lowering the activation energy for trying new cosmetics.

     
     

  We forget but what makes a business and its product successful is making it easier for the consumer to buy.

  
  

  So, for Glossier, by effectively lowering the threshold energy for engagement and purchase, it rapidly gained popularity, becoming a cult favorite in the beauty industry. Glossier's approach not only attracted a loyal customer base but also inspired a wave of similar direct-to-consumer brands in the cosmetics space.

  
  

• Acknowledge Personal and Business Failures. Identify and reflect on instances where you’ve stumbled personally or in a business setting.

  
  

  Acknowledge your role in those situations and use them as learning experiences. This reflection can help you understand that failure is part of the journey to success.

  
  

  Maybe you, (like I used to be) would sweep your failures under the carpet and would forget (or pretend to forget) they were there?

  
  

  Early in my start-up investment days, I backed a health-tech founder. She was a dismal failure. I personally didn't have the right decision-matrix set-up for such an investment, nor did I have any idea how to actively manage a business. I learnt the hard way and that start-up blew up.

  
  

  I tried to ignore that failure for years, but when I stopped and acknowledged it was there, it gave me many different learning experiences.

  
  

  I now have a very high-bar and an extensive due-diligence process that I undertake with clients, even in life. However, not only was it a learning experience that helped me develop a better risk-management process, but, as I write out my list of my life's failures, I can see it paved the way for greater personal growth and strategic risk-taking.

  
  

  We all have failures, but it is what we do with them? How we learn from them is what makes us better at taking smarter actions.

  
  

• Prioritise Effort Over Outcomes. Shift your mindset to focus on the effort and initiative you put in rather than the results you achieve.

  
  

  You see, by recognising that you control your actions, you can reduce the fear of failure and this cultivates resilience.

  
  

  I want you to make a commitment to try, take action regardless of the outcome, and celebrate the effort itself.

  
  

  In a business setting (and this is hard to do for an SME), but the goal is to not focus on the immediate sales and profits but build relationships and foster a community around your brand or products. So, your focus is the effort on delivering the customer experience, then the community builds around that and thus the sales follow.

  
  

  Maybe you have heard of the new Denmark (Great Southern) startup, Wine on Mars (WOM). They are operating on a unique model (direct to producer) that supports winemakers as they push against the traditional constraints of the industry.

  
  

  Where they will win is on:

  
  

  • Personalised Customer Engagement: They will actively engage with their customers through personalised recommendations and feedback mechanisms. By prioritising the effort to understand customer preferences and tastes, WOM builds loyalty and trust.

    
    

  • Educational Content: WOM will invest in creating content that educates customers about the winemaking process, wine tasting, and food pairings. This effort to provide value beyond just selling wine fosters a deeper connection with the brand.

    
    

  • Transparency and Trust: Provenance is everything in 2024 and beyond and it provides transparency. Transparency fosters trust with customers. When businesses are open about their practices, products, and pricing, customers are more likely to feel confident in their purchases, leading to increased loyalty.

  
  

  Using this as one of many examples, the goal here is always effort over the outcome. I remember one of my mentors once said to me, "Tom, if you have the best interests of your customer, the sale always follows". So focus on the effort and the desired results will come.

There is always more to say and ideas to share. Some week's posts will be autobiographical, others more business or life and everything in between. But for now, take this, maybe there's a personal desire that is not getting the oxygen it needs? Or perhaps there's a business challenge that you are suck on?

My encouragement is, don't fear the failure. Step out and do. It will only improve how you manage and engage in risk....

So, keep taking risks!

What is the saying? "Go out on a limb, because that is where the fruit is".

Be amazing,

TK