The successful founder, CEO or even just manager is motivated by two important drives. There’s the drive for success, to push forward and bring in record breaking revenue for the business, resulting in celebration, bonuses and expansion.
On the other hand, you have to balance that urge to push forward with the drive to avoid risk. Diving into expansion without due consideration means you might find there’s no demand in this new market and you’ve poured resources into a project that can never return your investment. Signing a big contract to supply a lot of goods might bring in money in the short term, but unless you have the infrastructure to reliably deliver the goods, you’ve just opened yourself up to the risk of failure on a huge scale, possibly leaving you liable to repay the payment for the contract as well as the loss of face you suffer when you fail.
If one of these drives win out over the other, it’s far from a recipe for success. If you’re too bold, you’ll plunge headlong into disaster without even recognising what you’re doing. If you’re too cautious, you’ll never take those necessary risks that net you the big returns that drive your business forward. There’s risk with every decision, so avoiding it all together means paralysis!
What you need to ensure balance is data. You need to the hard figures to start to model the outcomes of your decisions, and make educated choices about what will expose you to the most risk, and what risks can be expected to be pay off. Working with a market research company means getting access to scalable intelligence solutions – research and data about your market and customers that fits what you need at any given time. You can scale up and down depending on the level of insight you need, getting a full and detailed picture when you have decisions of great moment to make, and dropping down to a less exhaustive level when you’re simply dealing with day to day work. Keeping at least some level of research is well worth doing. Tracking how customers, and the market in general react to changing circumstances means you start being able to model outcomes in advance. This means when you have a big decision to make you can predict what the riskiest results are, and make an informed decision about if they’re worth pursuing or not.