Risky business can lead to success

Thrill-seekers and successful business operators have much in common, and there's a reason for this, writes Will Clark

Thrill-seekers and successful business operators have much in common, and there’s a reason for this, writes Will Clark

Fast driving, hard partying, volatile thrill-merchants might not seem like ideal management material, but if a business needs a bold, creative thinker who will take risks to make it successful, then a ‘sensation-seeker’ could be just the right candidate.

Many sensation-seekers have also been great business operators. Take as examples Virgin boss Richard Branson, US entertainment mogul Ted Turner and 1930s tycoon Howard Hughes, on whom the film The Aviator was based.

In fact, some scientists believe that daredevil thrill-seekers share the same brain chemistry as ambitious young workers – lower level of the enzyme monoamine oxidase (MAO). The amount of MAO in a person’s brain increases as they get older, making them more cautious. This is probably why most stock-market traders are young and willing to take risks to make money.

These same traits could be useful for a company that is keen to develop and is looking for a bold manager to lead the way. Sensation seekers take risks, not because they like danger, but because they enjoy the challenges and want to reap the rewards of success. The character-istics that you see in racing drivers or explorers are also evident in successful business entrepreneurs. These are forward thinking people who are often good at networking, developing creative solutions to problems and most of all are not afraid to take a risk to achieve business success.

Richard Branson has undertaken many daredevil pursuits since setting-up Virgin, including crossing the Atlantic in a speedboat and attempting to fly around the world in a balloon. Ted Turner also circumnavigated the world in a yacht, whereas Howard Hughes was famous for building, flying and occasionally crashing aeroplanes.

British motor racing legends Stirling Moss and Jackie Stewart have both become successful businessmen, as has former Formula One star Niki Lauda, who set up his own airline. Although outspoken entrepreneur Alan Sugar is not known for death-defying stunts, he did risk his business fortune for the sensation of running Spurs, while volatile TV chef Gordon Ramsey may be foul-mouthed in the kitchen, but also runs a series of hugely successful restaurants.

While most businesses naturally tend to shy away from activities that involve an element of chance, they could actually afford to take more calculated risks in certain areas, such as pursuing new sales and customers, developing new and innovative products, or trying out new marketing strategies.

On the other hand, a huge number of firms regularly put their finances in danger by taking un-necessary risks. Companies that fail to credit-check new customers, do not take out credit insurance against bad debt, or concentrate all their business on one or two major clients, are left vulnerable if those customers go bust or do not pay their bills, as happened with the recent collapse of MG Rover.

So if you are looking for a new manager or director to help put your business back on track, don’t immediately discount the person that turns up for an interview in a flashy sports cars and a glint in their eye. They just may be perfect for the job.