Acknowledge that risk is part of entrepreneurship:
You never have to like risk, but you do need to accept that it exists. Pretending will not make it go away. It can be helpful to remember this: Most things that are worthwhile require a certain level of risk. Whether executing a trade in the stock market, starting a new business, expanding an existing business or even just asking for a raise, you will have to put something on the line, be it money or simply your pride. However, it can be helpful to remember that often, the potential reward makes the risk worthwhile.
If you were going parachute jumping, you would definitely check that your chute was working before you dived out of the plane. Likewise, in business, it is important to assess your preparedness before taking a risk. First, check your mindset. Are you feeling calm, have you gotten enough sleep, have you eaten? Second, check your preparedness for the specific task or undertaking. For instance, if you are about to sign a lease for a business space, do you have your paperwork in order and all of the necessary documentation? Being prepared can help you manage risk more effectively by keeping you in a calm, collected state of mind.
Do your research:
No matter what kind of risk you are taking on, from courting a new client to investing in a new business, it is important to make sure that your moves are calculated. This means you have got to do your research. For example, if you are about to invest in a food truck, you should learn all that you can about food trucks, including zoning laws, fees and permits, parking rules and so on. By being able to anticipate potential obstacles, you will be better able to deal with them if and when they arise.
Consider the best-case scenario:
A little bit of optimism can go a long way in terms of giving you the bravery to follow through with taking a risk. So consider this: What is the best that could happen? Visualize the best-case scenario before taking a risk. Consider how it would feel to attain your goals. Keeping your eyes on the prize can help you manage risk by helping you stay motivated.
Consider the worst-case scenario:
This might not be as fun as considering the best-case scenario, but it is equally important. Considering what could go wrong when taking a risk is not about giving you a panic attack. Rather, it is about helping you consider what could go wrong so that you can take proactive steps to avoid such outcomes.