Risky business

Again, while reading over some of Seth's posts, I came across an interesting little blog that I thought was noteworthy.

Risk truly is something companies worry about day in and day out. Executives make decisions to buy new products, acquire new services, and even hire new people everyday based on the risk of their new acquisition being successful. Seth mentions a key point that most B2B transactions require a large amount of risk, seeing as the amount/size of their order is much larger then most consumer requests.

I do have to agree with him for the most part. A high amount of risk is not always a negative quality. It intrigues certain people to try new alternatives and hope for the best. And like he says, when people discover a new success, coming from a large risk, they are much more likely to tell their associates and friends.

Think about it. It is like hearing about a completely new computer coming out, something different then a PC or the all mighty Macs. Not everyone is going to be quick to jump the gun on it because it is a huge risk compared to the safety they have with their previous computers. When someone decides to indulge in this risk, however, and find success, well then the new Apple has been created. These satisfied customers will soon spread (WOM) the word and the business will benefit from their risk factor.

Word of caution: creating products with a higher risk is not always wise. Though it does have the potential to generate a great amount of buzz, you must be 100% confident that your product/service does not fail.