Three Things Every Entrepreneur Should Know About Risk
Taking risks is never easy. Most times, you have to step outside of your comfort zone. Unfortunately, many folks tend to avoid risk when possible, opting instead for safety. But some of the most successful people in the world got to where they are today because they were willing to take on risk when no one else was.
It doesn’t matter how crazy the idea, failure to take risk can cost you.
In fact, think of the oddest business idea you can think of right now. Ask yourself these three key questions. Answer honestly because your answers may surprise you. No. 1, what’s the best thing that can happen? No. 2, what’s the worst thing that can happen just by trying and stepping out of my comfort zone?
Three, how would I feel if I didn’t at least try?
Sure, taking risk can be intimidating, especially for new entrepreneurs. But I can tell you after many years of taking risks, I wouldn’t be as successful. Here are some key pointers to keep in mind if you’re scared of stepping out on your own.
No. 1 – Entrepreneurship isn’t for everyone
Risk is inherent in being an entrepreneur. Success isn’t handed to you. Money isn’t handed to you. Expect to have to work hard. Expect to work long hours. Or, you’ll get back exactly what you put in – nothing. Either you want to follow or you want to be a follower. That’s the bottom line.
No. 2 – You must Take Calculated Risks
There are giant risks. There are miniscule risks. There are also calculated risks.
Most often, big risk takes will bet it on the roll of the dice. If they fail, they can fall big and in such a way they can’t take on any more risk. That’s not what smart entrepreneurs do, though. The smart guys figure out how to minimize potential failure by anticipating what could happen, taking smaller steps towards a goal.
In short, instead of taking too much risk, create a deliberate risk evaluation process from the very start.
No. 3 – Sometimes failure is Inevitable
Failure happens. No matter how hard you try to avoid it, it will happen. But that’s okay. Just learn how to deal with it. Great entrepreneurs take it all in stride
As Mark Cuban likes to say, “It doesn’t matter how many times you fail. It doesn’t matter how many times you almost get it right. No one is going to know or care about your failures, and neither should you. All you have to do is learn from them and those around you because all that matters in business is that you get it right once. Then everyone can tell you how lucky you are.”