Taking calculated risks in business

Every single breakthrough that has ever happened at Penji has been the result of taking a calculated risks. 

So what is a calculate risk? This isn’t some Webster’s dictionary definition here, but it’s when you take a chance on something that you are confident will yield positive results, based off of research and data.

One of the most important things you can do for your business is to invest in data and the desire to stay curious. I’d like to give some examples of calculated risks and how they paid off. 

Example 1:

Every single time a person comes through Penji, we document where they came from. We then ask questions about their company, what they like, and most importantly why they chose Penji. We have this documented and the importance of this is that because we know our customers reasonings and logic behind why they chose Penji, we can, in a way, use their words against future customers.

One of the newest mantras we are working with in 2019 is that Penji is simple, fast, and affordable. That didn’t just come over night. That came from time and money well spent. So why is this important. Well? We now know words that resonate with our customer base and when we place ads or talk to prospects to sell Penji to, we know the terminology to use that will allow them to understand. 

The risk here is that when we invest $10,000 in advertisements, we need to make sure that we are right. Which leads me to example number 2.

Example 2:

When have had a ton of conversations about advertisements. We’ve asked questions like:

  • Will they work?
  • Is our service a great fit for ads?
  • What do we say?
  • How can we get our point across?
  • How many times do they have to see our ads, before they consider a purchase?
  • How can we say something in an ad and the prospect simply gets it and then get involved within our sales funnel?

This is important stuff here. So here is the calculated risk that we’ve taken to make sure that we benefit from a larger investment in ads.

The appropriate teams meet to discuss ads. They talk about the ad copy, the messaging, the targeting, and the creative that’s needed for the ads.

We then take the ideas that pass through and create close to 15 different versions for each ad set. If need to know these terms, drop a comment and I can expand on this strategy in more detail. 

Those 15 different versions turn into close to 100 different ads. We then incrementally spend our money to find that one ad. We then take the winners and turn them into a full blown campaign.

This process takes time and you must be patience with the results, but if you prepare enough. That calculated risk, also guarantees you a victory.