Do You Take Risks?

Unreasonable Risk-Taking

 

Unreasonable risk-takers are individuals who tend to over-emphasize the resources they have available or can acquire to accomplish their objectives. Or, they’re people who under-emphasize the barriers that are likely to get in their way.

There’s been a lot of emphasis in the past decade or so on risk-taking as a positive trait of high achieving individuals. Most corporate environments don’t encourage risk-taking. Neither do government bureaucracies. So “unreasonable risk-taking” might not seem like much of a problem, except that we’re talking about increasing power and influence with others. That demands that you take risks, provide leadership, and create visions for others. So risk-taking comes with the territory of adaptability.

This is just a note of caution to take reasonable risks. Psychologist David McClelland and others who have researched high achievers say the most successful individuals take moderate risks which have a 30 percent to 70 percent chance of being accomplished. Taking a risk on something that has less than a 30 percent chance of success is considered reckless behavior rather than reasonable risk taking. This is especially true if you’re risking the resources of other people in the process.

Accomplishing something, which has over 70 percent chance of success, is essentially not taking a risk in the first place. Assessing risk involves both looking at what positive factors are in the plan, as well as the negative factors that stand to get in the way. There’s usually no way to do an ironclad assessment of a plan. Oftentimes the factor that weights the balance in one direction or the other is the person taking the risk. How much follow-through do you have? How much energy are you going to bring to the enterprise? If the going gets tough, can you count on yourself to keep going?

A great majority of businesses begun by individuals in this country fail within the first 5 years. Starting a new business is always a risk, but a good business plan upfront will help assess the chances for success. According to Michael Gerber, who runs a nationwide training company for fledgling entrepreneurs, the number one reason for the failure of startup businesses is under-estimation of the resources it takes to keep a business going. Under-estimate of the capital required, under-estimate of the time it takes, and under-estimate of the expertise it takes to run your own business. Yet every year, hundreds of thousands of people hang out their sign, print their business cards and wait for their first customer or client.

And the good news is that tens of thousands of those businesses do succeed. Because they’ve taken a reasonable risk.

 

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About Assessment Business Center
Dr. Tony Alessandra has a street-wise, college-smart perspective on business, having been raised in the housing projects of NYC to eventually realizing success as a graduate professor of marketing, entrepreneur, business author, and hall-of-fame keynote speaker. He earned a BBA from the Univ. of Notre Dame, an MBA from the Univ. of Connecticut and his PhD in marketing from Georgia State University. In addition to being president of Assessment Business Center, a company that offers online 360º assessments, Tony is also a founding partner in The Cyrano Group and Platinum Rule Group--companies which have successfully combined cutting-edge technology and proven psychology to give salespeople the ability to build and maintain positive relationships with hundreds of clients and prospects. Dr. Alessandra is a prolific author with 27 books translated into over 50 foreign language editions, including the newly revised, best selling The NEW Art of Managing People (Free Press/Simon & Schuster, 2008); Charisma (Warner Books, 1998); The Platinum Rule (Warner Books, 1996); Collaborative Selling (John Wiley & Sons, 1993); and Communicating at Work (Fireside/Simon & Schuster, 1993). He is featured in over 50 audio/video programs and films, including Relationship Strategies (American Media); The Dynamics of Effective Listening (Nightingale-Conant); and Non-Manipulative Selling (Walt Disney). He is also the originator of the internationally-recognized behavioral style assessment tool - The Platinum Rule®. Recognized by Meetings & Conventions Magazine as "one of America's most electrifying speakers," Dr. Alessandra was inducted into the Speakers Hall of Fame in 1985. In 2009, he was inducted as one of the “Legends of the Speaking Profession,” in 2010 and 2011 he was selected as one of the Top 5 Marketing Speakers by Speaking.com, and in 2010 Tony was elected into the inaugural class of the Sales Hall of Fame. Tony's polished style, powerful message, and proven ability as a consummate business strategist consistently earn rave reviews and loyal clients. Contact information for Dr. Tony Alessandra: • Dr. Tony’s Products: http://www.alessandra.com/products/index.asp • Keynote Speeches: Holli Catchpole: Phone: 1-760-603-8110 ● Email: Holli@SpeakersOffice.com • Corporate Training: Scott Zimmerman: Phone: 1-330-848-0444 x2 ● Email: Scott@PlatinumRuleGroup.com • Cyrano CRM System: Scott Zimmerman: Phone: 1-330-848-0444 x2 ● Email: Scott@PlatinumRuleGroup.com

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