Step 4: Reduce or Eliminate Downside Risk

GOAL: Address weaknesses or objections to your idea head-on.

Even the boldest decision-makers want to cover their bottoms, so don't try to downplay potential problems and objections. Instead, anticipate them in advance and be ready with a convincing response.

This is where you should turn to a trusted friend or colleague to act as your reality-checker, to ensure that you're not just huffing your own fumes. Get your friend to list every doubt or glitch that comes to mind. Avoid the temptation to brush-off such concerns as trivial or off-point, and instead treat each as a practical problem that demands an effective response.

For example, if the objection is "we did this before and it didn't work," be ready to articulate how your idea is substantially different and exactly what factors and circumstances make it more likely to succeed. Similarly, if the objection is that the idea will cost too much to implement, you should prepare a spreadsheet that shows how the expense can be made to fit into the current budget.

"If it's a good idea, everyone will say it's crap, at least at first," says Ken Gidge, who among other things invented the hanging plastic "strip doors" used in service-station garages. "When the suits start telling you why it won't work, you get aggressive. Throw numbers at them to quell their skepticism; then get a commitment for a pilot."

 Nitty Gritty

Three Strategies to Manage Risk

1. Have a "can't lose" contingency plan.
   Example: "Even if this fails, we'll understand the market better."
2. Define a low barrier to entry.
   Example: "We can run a small pilot to see whether it will work."
3. Turn weakness into strength.
   Example: "There's no research available so our competition knows no more than we do."