by Michael Arbow, MBA
Partner, RSD Solutions Inc.
As an entrepreneurial company, RSD Solutions Inc. takes risks all the time so that we may move the company forward. With each risk or strategy we look at the potential cost of the downside and potential benefits of the upside; one wonders whether Casity Dixon (age 14) fully considered the downside risk of establishing a lemonade stand in Midway, Georgia so to self-finance her trip to a water park. While I doubt she did some thorough cost/benefit analysis, the local police did it for her and shut Casity's entrepreneurial business operation down because as they said:
“(the consumer,...) didn't know how the lemonade was made, who made it or what was in it.”
On the surface the police’s logic is sound, but is their action of preventing potential downside risk warranted? Have children’s lemonade stands been red flagged as causing undue harm to consumers across GA? When your firm or organization decides to reduce or eliminate downside risk, is it based on founded and proven principles (experience? statistics?) or on some broader undefined concept? Reducing the downside is important but it is double-edge for the more you reduce downside the more you reduce upside.
For more on this story, click on the link to the Winston-Salem Journal: http://tinyurl.com/6b2ku7t
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