Everyone seeks success, whether through careful planning or by seizing opportunities as they arise. Business is no exception. From small part-time trades to large enterprises, the main goal is to succeed, grow and move forward. Business exists to meet human needs ethically, satisfy customers and ultimately generate profit. Every entrepreneur starts with this, which is natural and commendable. But the business world is full of uncertainties, competition and constant change. Understanding these realities is essential for entrepreneurs and customers alike, as it encourages realistic expectations and stronger, trusting relationships.

A popular saying goes; “the hand that counts gains is the same hand that will count loss”. This assertion carries a heavy message, sending powerful signals aimed at making the key players in the business industry to be mindful of possible results that are not likely planned for or unexpected. Profit and loss are inseparable. Many admire business rewards, yet few truly appreciate the risks behind them. Risk is not accidental, it is the foundation of every commercial activity.

Risk arises whenever outcomes differ from expectations, often threatening finances, time, effort or reputation. Market shifts, changing customer preferences, rising costs and competitor actions lie largely beyond control. These could be termed as external factors or uncontrollable variables. Even the most carefully planned venture cannot eliminate uncertainty. Avoiding risk entirely would mean avoiding business itself, because profit is built on navigating uncertainty wisely.

A simple principle guides business reality; higher risk often brings higher reward. A parcel of undeveloped land carries more uncertainty than a built house, that is why its potential return is likely far greater. Businesses handling perishable goods like bakeries face risk of spoilage and sometimes total loss of an entire production circle because of an action, inaction or reaction. Those engaged in poultry farming and animal husbandry also face risks of disease outbreak that can lead to high or low mortality. However, these businesses often earn higher profits. Transportation companies manage risks ranging from human, technical, environmental and regulatory challenges, yet generally earn more than stable, low-risk businesses.

In the service industry, higher compensation often reflects risk. Health workers, for example, face exposure to diseases like tuberculosis, HIV or corona virus. Security personnel operate under constant threat to life and safety. Their higher pay reflects the extraordinary risks they bear. Across every field, the greater the exposure to risk, the higher the reward.

Successful businesspeople do not fear risk. They approach it with knowledge, preparation and courage. Careful planning, evaluating potential downsides and acting strategically, uncertainty can turn into opportunity. Adaptability and resilience transform risk from a source of fear into a tool for growth. Risk can also be managed. Entrepreneurs may avoid unnecessary exposure, reduce uncertainty through research and preparation or share risk via partnerships and insurance. These strategies do not eliminate risk but make it navigable, protecting investments while allowing ventures to thrive profitably.

For aspiring entrepreneurs, understanding risk is the first step toward lasting success. Recognizing uncertainty helps make informed decisions, seize opportunities and prepare for challenges. Customers also benefit by appreciating the uncertainties businesses face which tend to foster trust, patience and cooperation.

Risk is not the enemy of business; it is its constant companion. Profit and loss walk hand in hand. Entrepreneurs who embrace risk thoughtfully, ethically and strategically can meet needs, satisfy customers and generate profit. Those who learn to count gains and losses wisely are most likely to achieve lasting success.

Yusuf Alhaji Lawan writes from Hausawa Asibiti Ward, Potiskum Yobe State. He can be reached via nasidi30@gmail.com.