Risk and Profit

There is some degree of correlation between risk and profit in the sense that, as a small business owner, you make choices that involve exploring opportunities that can potentially earn you a profit. The very act of starting a business is a risk taken for the sake of earning a profit. Even if you are reasonably cautious about how you invest in your business, you have nonetheless chosen to leave behind a job where you earn a consistent amount each week, and put your personal resources at stake without knowing precisely how much you will earn.

Caution and Profit

Just as investing in new endeavors can earn you a profit when you are operating a business, exercizing caution can sometimes earn you a profit as well. If you have established your business by creating a particular product, such as outdoor gear, and your company has reached the stage where it is stable and profitable, you may earn more of a profit by sticking with your current business model than by branching out, risking resources and trying something new.

Caution and Loss

References

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