Quick snippets from my morning read on Thursday, 12th November 2020
This morning’s read continues a little from yesterday, where the core focus was on growth, but an element of understanding the risk it takes. Today, we explore a little deeper on risk, and share from an article on Entrepreneur on the things entrepreneurs need to understand about risk.
5 Things Every Entrepreneur Should Know About Risk-Taking
Most people tend to avoid risks when possible, because inaction is often safer than action, but most successful people will tell you they got to where they are because they were willing to take risks no one else was — whether that was developing a product nobody else thought would work or investing a sum of money everyone else thought was crazy.
1. Risk-taking is inherent in entrepreneurship.
If you aren’t prepared to take risks, you have no business being an entrepreneur. Entrepreneurship is fundamentally linked to risk-taking. You’ll need to invest some of your personal capital into a growing business — in most cases. You’ll stake your reputation on an unproven idea. You’ll sacrifice a steady paycheck for the first several months to a year — again, in most cases.
2. Some of your risks won’t pay off.
Some risks — even carefully calculated ones — will fail. Instead of ignoring this fact to overcome your apprehension toward risk, embrace it. Let yourself accept the possibility of failure, and when you do fail, don’t take it personally — learn from the experience and move on.
3. Risk is a differentiator.
Because most people are unwilling to take risks, the risk-takers of the world naturally stand out in the crowd, and as we all know, entrepreneurs and businesses that stand out are the only ones with a shot at breakout success.
Read the full article (alongside more insights for each item on the full list) here.
And as always, if you enjoyed this, check out the rest of my daily snippets, curated daily, right here on The Red Notebook.
