How to succeed in Business

Succeeding in business is really about managing risks and resources well.

There are four main ways of managing the risks I explained in the video. 

To manage a risk, you can ACCEPT it, AVOID it, REDUCE its impact, or TRANSFER it to another party. 

Examples:
1) Nigeria is a big market with many opportunities, but doing business in the country is tough because of the systemic risks. If you go ahead to start a business in the country, you have implicitly accepted those risks as part of doing business. But if you choose to go to another market, like Rwanda or Mauritius, you have avoided the systemic risks in Nigeria. 

However, it’s important to note that risks often comes with opportunities. So, when you avoid some risks you will also miss the opportunities that come with them. Nigeria is a much bigger market than both Rwanda and Mauritius.

2) Buying insurance to cover critical assets in your business is an example of transferring risk to a third party. If there is a fire, or accident, or damage, the insurance company bears the risk and covers the full cost.

3) Developing a relationship with your bank so you can have access to quick short-term financing is a way of reducing the risk that your business runs out of money. 

In summary, how you manage business risks is a skill that makes you a better and more successful entrepreneur. 

I hope this explanation helps. 

You’re welcome.

@commenters