#Strategy #Playbook

Running a business means taking risks. You take a risk when you try something new, raise prices, or hire someone. But here’s the thing: Not all risks are the same.  And if you treat them the same way, you could be wasting time—or even putting your business in danger. Smart businesses learn to understand different types of risks and handle each one the right way.

“Not all risks are bad—some help you grow.”

Three Types of Risk (And How to Handle Them)

Risk can be broken into three simple types. Each one needs a different plan.

1. Avoidable Risks

• These are mistakes or problems you can prevent
• Examples: An employee deletes a file, someone forgets to follow safety steps
• How to handle it: Use clear rules, give training, and check your systems

2. Growth Risks

• These happen when you take a risk to grow your business
• Examples: Starting a new product, entering a new market, changing how you price
• How to handle it: You can't eliminate these—you need to watch them, test ideas in small ways, and learn fast

3. Outside Risks

• These are risks that come from outside your control
• Examples: New laws, changes in the economy, natural disasters
• How to handle it: Be prepared, have backup plans, and stay alert

“You can’t control the storm, but you can check the forecast.”

A Simple Example

Imagine you run a small graphic design business.

• Avoidable Risk: A client’s logo file is lost
• You fix this with good file backup systems and staff training
• Growth Risk: You offer a new monthly design plan
•  You test it with a few clients to see how it works before going big
• Outside Risk: A new law changes how you store client data
• You stay ahead by reading industry news and working with a legal advisor

As a small business owner, you don’t need to be afraid of risk. You just need to know which risks to avoid, which to test, and which to prepare for.

Key Takeaway

You can’t grow without risk. But when you know the type of risk you’re facing—

• Is it avoidable?
• Is it a growth opportunity?
• Is it something from outside your control?

—you’ll be able to make better decisions, faster.

“Growth requires courage—but also caution.”