Growth often requires stepping out of comfort zones, and for businesses, this means taking calculated risks. Rather than avoiding uncertainty, successful businesses carefully assess which risks are worth taking to move toward their goals. Michael Shvartsman, an experienced investor and entrepreneur, emphasizes the importance of understanding the potential impacts of different types of risks. “Risk is a natural part of growth,” he explains. “The key is taking those risks strategically, in ways that create real potential for advancement.”
- Entering New Markets
Expanding into new markets is one of the most common strategies for growth, but it comes with inherent risks. Every market is different, with its own set of:
- demands,
- competition,
- cultural expectations.
Businesses need thorough research and insights into these areas before committing resources to new markets.
Michael Shvartsman advises approaching new markets with flexibility. “Test your product or service on a smaller scale first, gauge the response, and learn from it. It’s better to refine your approach based on real data than to go in blindly. A targeted strategy reduces the risk and increases your odds of success.” Shvartsman’s approach highlights the importance of trial and feedback in minimizing potential setbacks when entering unfamiliar territory.
- Innovating and Introducing New Products
Bringing in new products or services can diversify a company’s offerings, but this approach requires investments of time, resources, and creative effort. It’s essential for businesses to consider market needs and customer feedback when deciding which new product to develop.
Michael Shvartsman suggests treating new product launches as iterative learning experiences. “Start small, gather data, and make adjustments,” he advises. “The advantage of starting small is that you can adapt quickly based on customer response, which reduces the risk of losing larger investments if the product doesn’t take off right away.” Shvartsman’s advice highlights the benefits of a phased approach to new offerings, helping companies minimize risk while maximizing learning.
- Investing in Technology and Digital Transformation
The digital age brings numerous tools that can optimize business processes, improve efficiency, and enhance customer experiences. However, adopting new technology often requires substantial investment and changes in operations.
Michael Shvartsman stresses that choosing the right technology is essential. “Not every new tool is right for your business. Research and pilot test technology before full implementation. Make sure it aligns with your goals and will benefit the team.” By prioritizing technologies that have clear potential, businesses can reduce the likelihood of missteps and realize higher returns from their tech investments.
- Hiring for Growth Potential
Building a team with diverse skills and perspectives is an essential step for business growth. However, hiring new employees, especially for a growing startup, comes with financial and operational risks. Business leaders must invest in individuals who not only bring value to the company today but who will contribute to its future vision.
Michael Shvartsman suggests looking at candidates who demonstrate potential for adaptability and growth. “When you’re growing, you need people who can grow with the company,” he says. “Hire for skills, but also for mindset. These are the people who’ll help your business evolve as challenges come along.” A focused hiring strategy ensures that new team members can actively contribute to the company’s future success.
- Raising Capital at the Right Time
For some businesses, raising capital from investors or lenders can enable rapid expansion. However, taking on debt or diluting ownership are significant decisions, and timing is key. Companies need to weigh the short-term needs for growth against long-term financial health.
According to Michael Shvartsman, timing is everything when it comes to raising funds. “Securing capital at the right moment can make a difference in your company’s ability to seize growth opportunities. But if done prematurely, it could limit options in the future.” Planning out funding needs and aligning them with strategic goals will help businesses make the most of new capital. Taking calculated risks can help businesses achieve significant growth. By choosing which risks to take, aligning them with long-term goals, and adjusting based on results, companies can progress toward greater stability and success in competitive markets.
