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Honestly Assessing Risk
June 24, 2008
I find that many entrepreneurs never seriously consider risk. They think they do but really they are dealing in dreams. They see only two possible outcomes: Either they will be incredibly successful and make millions or they will fail and become street people.
I cannot tell you how many people, in moments of stress, will suddenly confess their fear of becoming a derelict.
The chances of falling all the way down the hill are just about the same as making it all the way to the top: Pretty small. Sure a few people do make millions, and I guess there have been some who end up in the gutter (although I have never actually heard of one).
Rather, what happens to most entrepreneurs is they work incredibly hard and make very little money for their efforts. Finally, after much effort, it all becomes too unrewarding and they give up. It’s not exciting. It’s life.
So, my recommendation to anyone venturing out into the marketplace for the first time is to do an honest assessment of the risk and reward. Don’t think about the extremes but deal in the range of most likely outcomes. Once you have done this, do a gut check and see if you are prepared to accept (not like, just accept) the consequences of things not going well.
Becoming an entrepreneur can be one of the most exciting voyages of your life. You will meet heroes and villains, you will go to exotic places, and you will make wonderful new friends (and maybe an enemy or two) along the way. You will also have periods of high stress, depression and worry. You can lose some money too; maybe a lot.
No, you probably won’t end up living out of a trash can. You will, however, be on a long and arduous adventure with great highs and lows. Make sure you are willing to take that on and if you are, Bon Voyage! It can be a hell of a journey.
Posted by Richard Gottlieb on June 24, 2008 | Comments (0)
