“Life is either a daring adventure or nothing at all,” said Helen Keller, author of The Story of My Life (1903). Helen Keller was an American author, disability rights advocate, political activist and lecturer. Born in Tuscumbia, Alabama, She lost her sight and hearing at the age of nineteen months to an illness now believed to have been scarlet fever.
Well taking a risk is scary no matter if are playing a poker game or you are trying to pursue your business dream. But many people are ready to take the risk that no one else is ready for, to achieve great success.
Here are 5 things to know about risk-taking as an entrepreneur.
Risk-taking is inherent in entrepreneurship:
Well, being a successful entrepreneur is always about taking risks from time to time. The fundamental quality of an entrepreneur is risk-taking. A successful entrepreneur is very well aware of when to take a risk and when not to and they have already planned some strategies to tackle any future problems. While taking a risk they need to invest some of their capital into a growing business, in most cases.
There are different types of risks:
Here, we are not referring to big risks or small risks, although these risks also exist. Well, to become a successful entrepreneur you should know calculable risks. A calculable risk offers you a series of knowns that can reasonably predict the odds of success.
Then there are ambiguous risks, most of the business risks fall into this category because it offers you some knowns and some unknowns that can make you confuse while making a decision. It is a complicated method because consumer behavior and economic shifts are not easy to predict.
In the end, there are completely unknown risks, it arrives when an entrepreneur provides some unique ideas to the market.
Some of your risks won’t pay off:
Yes, not all risks can indeed give you success even if you have completely calculated every possible outcome. Many people say that risk-taking could generally be a rewarding strategy, but don’t get fooled by thinking that all risks are good risks. So, try to accept the possibility of failure, and even if you get failed anytime then try to learn from it.
We’re inherently biased toward predicting disaster:
Two inherent biases give us the idea of taking risks. The first one is that every one of us exaggerates the possibility of failure.
Well, the second one is that exaggerate the consequences of those failures, means that people start thinking about the worst-case scenario even if the reality is far more manageable.
Risk is a differentiator:
Well, some risks offer higher values but some risks give you smaller potential consequences than others. Taking a risk can make or break your business, but is a comment element in every type of risk i.e., all the risks are the differentiator.
Many people are scared of taking a risk but some stand out of crowd and take risks, they are entrepreneurs.
Trevor Koverko is the co-founder and CEO of Polymath Network which is the interface between financial securities and the blockchain. The company has raised $59 million. Before this, Trevor Koverko Net Worth founded several other companies.