How Evaluating Risk And Rewards Work In Your Favor

In business, risks include loss of revenue, legal action, and more

Risk and rewards are inseparable for professionals. Unsplash

By Richard Bertch

An old saying tells us that you miss 100 percent of the shots you don’t take.

In business and in life, it can be disappointing to launch an initiative and get lackluster results. Some people hesitate to truly commit to what they are doing due to fears about losing their resources in a failed attempt.

Risk is part of life and it’s your ability to evaluate and mitigate that risk that leads to success or failure. In business, risks include loss of revenue, legal action, and more. Some equate risk in business to games like poker where calculating risk effectively leads to big rewards with smaller losses.

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What Are the Upsides of Risk?

Marketing has always been a core component of entrepreneurship. Part of selling a good or service to a person is presenting it to them in the right manner. Using the correct sales strategy and the most effective platform make it much easier to promote successfully.

When you succeed in a marketing campaign, you can gain a number of benefits. The first is a greater amount of views and a higher rate of engagement. When people see your content and feel compelled to check it out for longer periods of time, they’re more likely to make a purchase.

Sales numbers are the be-all-end-all for most organizations. Even though there is more to a successful business than the bottom line, turning a profit is key for organizational growth.

Risk is part of life and it’s your ability to evaluate and mitigate that risk that leads to success or failure. Pixabay

Even if the goal isn’t to sell a product, but to promote a special event, using the right marketing strategy helps get the word out and raise the necessary amount of awareness to help the business reach its goal.

Just like the example above, the upside to a business of successfully executing plans is higher revenue which lowers risk for future endeavors. Compare this to a game of Texas Hold’em at where each win increases your chip count leading to the player’s ability to take more risks without losing all of his chips.

What are the Downsides of Risk?

Companies and entrepreneurs have good reason to dedicate their resources to promotion. Putting enough time and money into marketing can help you see the results you need to take your efforts to the next level.

How much is too much? It is true that putting more money and time into marketing doesn’t automatically equate to a better result. Less is more in some cases, and using the resources efficiently can make a big difference.

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The more money and time you put into marketing, the less you have to dedicate to other areas of your business. This makes it important to find the right balance.

Comparing risk mitigation to poker again, understanding the quantifiable risks in a given hand is only part of the equation. You also need to evaluate your opponent’s demeanor and the situation they are in during a hand. You don’t want to get overly greedy while you have a larger chip count which can lead to mistakes and a big loss.

How the Two Work Together

Risk and rewards are inseparable for professionals. Getting a reward is only possible by overcoming a certain amount of risk, and the stakes are high when it comes to marketing.

Working together as a team helps a lot. Pixabay

Having someone represent a product, service, or especially a brand can be a big risk for any organization. However, it can also provide a wide variety of benefits including improved networking, more customers, and a greater long-term following.

Brands frequently use ambassadors to help people learn more about the game of poker, how they can play games like Texas Hold’em online, and the specifics behind major developments with the game’s competitive events.

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For example, poker ambassadors like Chris Moorman use their position as a professional poker player and social media influencer to grow the sport among younger demographics while showing brands they represent as the leader in their industry.

This is just one of the examples where the possibility of large rewards is accompanied by risk. It also shows how taking calculated risks can prove beneficial.

(Disclaimer: The article is sponsored, and hence promotes some commercial links.)