What Risks Have Paid Off for Small Business Owners?
Small Biz Digest
What Risks Have Paid Off for Small Business Owners?
Business risks are much like the chisel of a sculptor - one wrong strike can shatter the entire piece, but skill and precision can reveal a masterpiece. To navigate this delicate balance, we asked industry leaders, including Founders and CEOs, to share their experiences of taking risks that paid off. From embracing empathy to saying yes, explore these ten entrepreneurial success stories.
- Embraced Empathy in Business
- Took Calculated Risks for Growth
- Adapted to Market Demands
- Diversified Services
- Utilized Online Exposure
- Invested in Customer Experience
- Delegated Tasks to a Team
- Embraced Technology
- Offered Resources for Peers
- Said Yes to Opportunities
Embraced Empathy in Business
When I started a moving and storage business—a field typically dominated by men—many people told me I wouldn't last. They assumed I didn't understand the industry or couldn't handle the physical demands and logistical challenges. I knew there was room for fresh leadership and customer service that valued communication and trust along with efficiency. I dove into the details, from managing trucks to personally handling customer complaints, and it paid off.
Within a few years, we were ranked the No. 1 business in our region. The key was bringing empathy to an industry that lacked it. People aren't just moving their belongings, they're moving their lives. We made every client feel supported during the stress of relocation, and that approach built an unshakeable reputation. When the opportunity came, I sold the business at its peak, knowing it was the right time to exit.
I learned that entering a male-dominated field is only a barrier if you let it be. My success wasn't just about breaking into the industry; it was about offering something different. Don't hesitate to pursue something unconventional. You'll thrive and set new standards along the way.
Took Calculated Risks for Growth
One major risk that I took as the founder of Nationwide United Auto Transport happened in the early days of the business, when we decided to expand our services nationwide. At the time, we were primarily serving only local clients in Los Angeles. The move was a calculated risk, as it required a substantial upfront investment and a lot of logistical groundwork. However, the decision ultimately paid off. We expanded our client base, built an unrivaled network across the U.S., and grew into the 'Top-Rated' vehicle-transport company we are today. The takeaway from this experience is the importance of being open to taking calculated risks for business growth. While risk-taking has inherent uncertainties, a precise understanding of your industry, your client base, and robust service delivery can help convert those risks into opportunities. This ethos has been instrumental in navigating the intricacies of the vehicle-transport industry and continues to guide our business strategy.
Adapted to Market Demands
One significant risk we took at BestOnlineCabinets was the decision to enter the cabinet-manufacturing business ourselves. Initially, we focused solely on selling cabinets made by other companies, but we frequently received advice to start our own manufacturing. After two years of planning and development, we launched our custom-cabinetry factory in China in 2014. This gamble paid off by allowing us to offer high-quality cabinets at competitive prices, which ultimately set us apart from off-the-shelf options.
The success of our first factory led us to open another in Vietnam in 2018, further enhancing our production capabilities. From this experience, I learned the importance of being adaptable and responsive to market demands. Investing in our own manufacturing improved our product quality and provided us with greater control over our supply chain, which has been invaluable for our growth. For other small businesses, my advice is to listen to your market and be willing to take calculated risks that align with your vision.
Diversified Services
Expanding into property management was a risk because it required a significant investment of time and resources. Not only did I have to educate myself on the different laws and regulations surrounding property management, but I also had to build a team and develop new processes for managing properties.
However, this risk paid off tremendously, as it opened up a whole new stream of income for my business. By offering property management services, I was able to retain clients who were looking to invest in rental properties and provide them with a one-stop shop for all their real estate needs.
Moreover, branching out into property management allowed me to diversify my business and reduce the risk of relying solely on real estate sales. During times when the housing market was slow, property management provided a steady source of income.
Through this experience, I learned the importance of taking calculated risks in business. While it may seem intimidating at first, stepping out of your comfort zone and trying something new can lead to great success. It also taught me the value of continually learning and expanding my skill set to stay competitive in a constantly evolving industry.
Utilized Online Exposure
I wanted to be financially prepared before starting my business. Given my limited resources, it was a significant risk. I used my savings to establish the company and enlisted the help of my children to create a website that would attract potential clients. Initially hesitant, I trusted the process. Thanks to the website, I could showcase my expertise, which led to clients seeking my services.
The biggest learning from it? Limited resources should not inhibit you from starting a business. You just need to be more creative and resourceful so you can be noticed by potential leads and avail of your services. Also, online exposure is crucial to be more visible to your target market so take advantage of it and use it according to the goals of your company.
Invested in Customer Experience
One risk I took in my floral business that really paid off was investing in a high-quality website and online-ordering system. Initially, I was hesitant about spending a significant amount of money on digital upgrades because I wasn't sure if it would lead to increased sales. However, I realized that more people were turning to online shopping for convenience, especially during busy seasons like Valentine's Day and Mother's Day. So, I decided to take the plunge and revamp my website.
The results were fantastic! Once the new site went live, I noticed a substantial increase in online orders—about 50% more than the previous year. Customers loved the easy navigation and the ability to customize their floral arrangements online. This experience taught me that sometimes taking calculated risks can lead to significant rewards. Investing in technology not only improved customer satisfaction but also streamlined my operations, allowing me to focus more on creating beautiful arrangements.
From this experience, I learned the importance of embracing change and being willing to invest in areas that can enhance customer experience. It’s essential for small business owners to stay current with trends and adapt accordingly. Now, I always keep an eye on emerging technologies and customer preferences so that I can continue to evolve my business and stay ahead of the competition.
Delegated Tasks to a Team
I started my business solo, which made it challenging initially. I was hesitant to hire employees, fearing they might not meet my expectations or cause problems. However, as the company grew, I realized I needed a team for support. Taking the risk to hire new people and trust them to deliver results paid off. Since their arrival, managing the business has been much smoother. I can focus on finding leads, while my team concentrates on improving the company and its services. The biggest takeaway is that facing your fears can lead to positive outcomes that benefit you in the long run.
Embraced Technology
One risk I took was deciding to incorporate online booking and virtual Reiki sessions during the pandemic—a move that felt quite uncertain at the time. Initially, I was worried that the personal touch of in-person sessions would be lost, but it turned out to be a game-changer. Not only did it open up a wider clientele beyond our local community, but it also provided flexibility for clients who couldn't make it to our physical location. This experience taught me the importance of adaptability and embracing technology to enhance customer convenience. For instance, one of my clients from Scotland now regularly books virtual sessions, and she's mentioned how much she values the accessibility and continued support.
Offered Resources for Peers
One risk I took was offering evaluation templates for mental-health professionals on our website. Initially, I wasn't sure if it would be a success, given the abundance of information available online. However, to my delight, many people supported the idea and even recommended it to their colleagues. As a mental-health professional myself, I understand the challenges of conducting evaluations, and these templates can significantly streamline the process.
So the biggest learning from it is, it's better to take the risk and win than not do anything at all. Who would have known that this idea of mine would work perfectly for my colleagues?
Said Yes to Opportunities
When you're first getting started, it's hard to identify what are risks and what are opportunities. When I started my marketing-and-design company, the risk I was willing to take was saying yes to every opportunity that came my way. Whether it was marketing for a call center or creating a website and social-media strategy for an industrial-hygiene company, I kept saying yes. What I didn't realize at the time was how many doors this would open later, as word-of-mouth referrals finally began to grow. The best type of referral is from someone who knows your work and the value you can add to their company. Keep saying YES!
