As a new startup, you should be taking all new lessons and experiences in your stride in an effort to establish your business and really get the ball rolling. As such, looking to learn from the differing perspectives of other sectors and industries can be a great way of becoming a more efficient and better-functioning business.
That’s why today, the foreign exchange trading experts at Learn To Trade are bringing you and your new startup business some tips, tricks and advice straight from the trading floor, to demonstrate what there is to learn from the busy world of investment and trading.
Demonstrate value in your employees
Though we’re not suggesting you become quite as indulgent as the celebratory trading culture portrayed in The Wolf of Wall Street, the film does offer a glimpse into the positive mentality the trading floor has towards employee success – albeit in a slightly exaggerated manner!
By highlighting the achievements of your team members, you offer a defined incentive for employees. As a result, productivity, motivation and employee satisfaction are all heightened to benefit the overall success of your business. No matter if they’re big or small, look to celebrate any work-related achievements to encourage consistent performance day in, day out.
Understand risk awareness
Risk awareness is a skill imperative to a trader. Whether it’s making calculated decisions in high-pressure environments or making choices with no emotional influence, traders simply must remain logical and controlled to ensure they remain conscious of any possible risk. Additionally, this ability is a transferable skill useful to just about any business venture.
Within the industry, traders understand risk awareness in two distinct forms – internal and external. The former concerns a conscious awareness of one’s own strengths and weaknesses, identifying areas of unfamiliarity and acting accordingly. On the other hand, it also translates as the ability to recognise when you’re working to your strengths, exploiting and leveraging them to further your eventual goal. In the context of small business startups, an innate risk awareness enables you to identify when you’re dealing with sectors you’re inexperienced in, reacting under advised caution as a result.
External risk awareness is the concept in its more familiar context. In short, it’s evaluating the risk of a choice based on the context of the decision. For example, a forex trader would perhaps be more cautious about investing in the GBP during Brexit negotiations, as he or she knows there is the greater subsequent risk of the pound falling in value. In similar terms, a fresh startup must use the same external risk awareness to understand their industry, remaining cautious of how market trends and consumer habits can positively or negatively impact your business.
Don’t be scared of reactivity
Reactivity is perhaps the most important skill to any trader or investor. Vital to any profitable success is the ability to make snap decisions in an instant, consistently moving wherever the market takes you and adapting your strategy accordingly.
It will come as no secret to any small business startup that there are going to be good days and bad days. Emulating the reactivity seen on the trading floor will help you remain calm and composed during the latter, making logical and informed decisions that will help both the growth of your confidence and the long-term success of your business. Whether you’re solving an unexpected stocking issue or dealing with your first customer complaint, knowing when and how to react to difficult situations is a skill every business owner has to learn and craft.
Fresh startups can certainly learn a lot from the trading floor. Look to transfer the skills discussed in this article to your day-to-day business practices, to ensure your business continues to grow effectively.
John James is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.