A common perception is most entrepreneurs are gamblers by nature.

While I think this is true, there’s more nuance to it. Most successful entrepreneurs aren’t betting on a game of pure blind luck like roulette. You’ll find them perhaps at the Blackjack table, a game based on numbers sprinkled with some luck and skill, where they have a 49% chance of winning.

While most entrepreneurs do likely have a risk tolerance that’s greater than average, most are not wild game players and reckless risk takers—they’re actually meticulous risk managers.

When the house is winning, a proficient Blackjack player and a seasoned entrepreneur will both make the same move: carefully take a look at the hand they’ve been dealt and mitigate potential risk.

We’re all being dealt from the same crappy inflation deck. As an entrepreneur, here are some potential risks during inflation:

  • Increase in costs: Inflation can lead to an increase in the cost of raw materials, labor, and other inputs required for your business. This can impact your profit margins and make it harder to maintain your business operations.
  • Changing consumer behavior: Inflation can lead to changes in consumer behavior, as they may start looking for cheaper alternatives or reduce their spending altogether. This can impact your sales and revenue, so it’s important to understand how inflation is affecting your target market.
  • Pricing strategies: As costs increase, you may need to adjust your pricing strategies to maintain profitability. This can involve increasing prices to match the increased costs or finding ways to reduce costs to maintain prices.
  • Monitor cash flow: Inflation can impact cash flow, so it’s important to monitor your cash flow regularly and manage your working capital effectively. This may involve reducing inventory levels or negotiating better payment terms with suppliers.
  • Innovation and diversification: During inflation, it’s important to stay innovative and look for new opportunities to diversify your business. This can involve exploring new markets or product lines, or finding ways to streamline your operations to reduce costs.

Okay, yes, we all know these things, but now what? Is there a tool to help with a specific betting strategy?

Washington State’s SizeUp tool is a friendly, useful resource for refining an idea for a small business. SizeUp is a free online tool that provides data and analysis on a range of business-related topics, including industry trends, competition, and consumer behavior. It can help entrepreneurs to refine their ideas by providing insights into the market and identifying potential gaps or opportunities.

Here are some ways that entrepreneurs can use SizeUp to refine their business ideas:

  • Market research: SizeUp can provide information on industry trends, consumer behavior, and local competition. Entrepreneurs can use this data to identify potential gaps in the market or areas where they can differentiate their business from competitors.
  • Location analysis: gives detailed data on local demographics, including population, income, and education levels. Entrepreneurs can use this data to identify potential target markets and determine the best location for their business.
  • Competitor analysis: provides data on local competitors, including their size, revenue, and market share. Entrepreneurs can use this data to identify potential areas of differentiation and develop a strategy for competing in the local market.
  • Marketing analysis: offers data on local advertising and marketing trends, including social media usage and search engine rankings. Entrepreneurs can use this data to develop a targeted marketing strategy that reaches their desired audience.

We hope SizeUp helps you choose to hit, stand or double down during these uncertain times.