Using risk/reward analysis
Being in business is tough. If you don't take any chances then your odds for long term business success will probably be poor. If you take too many chances then at some time things may not work out for you and possible business ruin could result.
Using a risk/reward analysis in your business allows you to balance the two choices so you may weigh out which direction to follow.
I myself have just finished wrestling with a big opportunity and felt torn in how to proceed during the evaluation process. Too safe means losing the opportunity (including the big upside) the choice offers. Too risky means financial hardship for my business if it doesn't work out. I just arrived at my decision and feel good on my choice. During my decision process, I took counsel from others who helped me look at the various factors I should examine while pondering the opportunity's positives and negatives.
The point is to make decisions using risk/reward prudently to make the best decision you can at the time the opportunity presents itself. If you do that, you may feel better about the results of the decision you make.
I am a CPA in San Antonio and look forward to helping you reach your decision on business related matters when you're ready.
Richard J. Garcia | 03/11/2010