As the host of the Luminary Leadership Podcast, I’ve had the privilege of guiding many entrepreneurs and leaders through the intricate dance of business growth and innovation. In a recent episode, I delved into a topic that’s close to my heart and critical to any business’s success: the importance of taking strategic risks. Today, I want to share with you the insights and lessons from that discussion, and introduce you to a powerful tool I’ve developed—the “DARE” framework.
The DARE to Grow
Taking strategic risks isn’t just a suggestion; it’s a necessity for entrepreneurs looking to break through to their next level of growth. I’ve seen too many businesses get stuck in a cycle of maintenance, management, or stagnation. To avoid this, you need to be willing to stand with your toes on the edge of the cliff. Yes, it’s scary, but it’s also where visionary growth happens.
Strategic vs. Spastic Risks
There’s a clear distinction between strategic risks and what I call “spastic” risks. Strategic risks are calculated. They’re about leaping with confidence and being able to extract a return on investment (ROI) from testing and trying different strategies. This is where my “DARE” framework comes into play. It stands for Define, Assess, Respond, and Evaluate—four critical steps to guide you through the process of taking calculated risks for continued and significant growth.
The Transformative Power of Risk
I often compare the process of taking risks in business to the journey of pregnancy and childbirth. It’s a transformative experience that’s both challenging and empowering. Facing these challenges and taking risks is essential for living into your calling and achieving a big, beautiful vision for your personal and business growth.
Breaking Free from Comfort
It’s time to break free from creating from a place of scarcity and comfort. Playing offense is the key to experiencing exponential growth. I encourage you to revisit a previous episode where we discussed taking the next big leap and letting go of incremental growth for exponential growth. It sets the stage for the deeper conversation we’re having now about what is required for significant growth and innovation.
Setting Strategic Economic Objectives
Defining strategic economic objectives is the cornerstone of risk development. A clear roadmap with crystal clear goals propels you forward and aligns with your vision. These objectives act as a guiding force through the unpredictable seas of business and risk-taking.
In my own business, whether it was writing a book or growing a program, setting measurable and time-bound objectives was crucial. Collaborating with your leadership team or relevant individuals to make these objectives concrete is a step you cannot afford to skip.
Assessing Potential Risks and Upsides
When taking strategic risks, it’s vital to assess not only the ways things could fail but also the potential upsides. Prepare for both the challenges and the possibilities that could come from taking risks. Envision a world where challenges and roadblocks are real, but so are the stepping stones and opportunities that arise from strategic risks. Look at the good and bad what-ifs and prepare for both.
Responding with Agility
The “R” in the DARE framework stands for responding with agility. It’s about being ready to pivot and adapt when faced with potential risks and upsides. This agility is what will carry you through to the next steps in the framework and beyond.
Evaluating Outcomes and Creating Feedback Loops
Evaluating outcomes is just as important as the initial risk-taking. Creating feedback loops helps propel your business forward. As leaders, fostering a culture of risk and innovation within your teams is essential, and open communication is the bedrock of this culture.
Taking strategic risks is a journey fraught with challenges, but it’s also the most rewarding path to growth and success. With the DARE framework, you have a structured approach to navigate these waters. Reflect on your approach to risk-taking and ask yourself: Are you playing offense or defense in pursuing your business goals? Remember, the greatest achievements often come from the boldest leaps. Let’s dare to grow together.
Episode 208: Your Big Leap Year
Episode 180: Making Failure Profitable