in Startups

Take risks, calculated risks

Bullet proof vest maker entrepreneur taking a shot.
You know you are a true entreprenuer when you are willing to take a bullet for your product. The man in the photo, a bullet proof vest maker, is. (source : Baris Karadogan)

Being an entrepreneur involves taking many risks. As much as most people hate taking risks, they can’t be avoided. But taking risks doesn’t have to be a bad thing. You just have to do it carefully. Read — Entrepreneurs and Risk to get an idea of the way entrepreneurs really look at risk and the role it plays in their work.

Natural entrepreneurs actually enjoy taking smart risks

Entrepreneurs don’t think the way normal people do. They constantly challenge convention by pursuing unusual career and educational objectives. They have visions that other people don’t and aspire to change the world while others would rather accept life the way it is.

Entrepreneurs enjoy doing things differently. They are not afraid of risks, but enjoy waking up every day not knowing what the next will bring. However, they never dream of losing everything they have. While they enjoy taking risks, they know that they need to be smart about them.

Stay focused on success

If you are an entrepreneur, then you are a springboard of ideas. You have so many in your head that you may have a hard time focusing on one. Too many entrepreneurs start a business only to absentmindedly find themselves focusing on something else shortly.

Don’t lose sight of your end goal: success. Even if you are in business for the love of the journey, you need to eventually pay the bills and make sure you give your investors something for their assistance. Have your goals set up beforehand and make sure that you are focused on meeting them.

Examples of bad risks to take

One of the best ways to be a smart risk taker is to understand some of the bad risks that entrepreneurs have taken. They include:

  • Not knowing what your customers want.
  • Not understanding new trends.
  • Failing to use data to make predictions and estimate outcomes.
  • Failing to decide if the risk you take is worth the reward.

Smart entrepreneurs take smart risks

If you want to take a one in a million chance at getting wealthy, just go to a casino. It is a lot less work to lose your savings at the roulette table than it is to start a business. You have to take risks to succeed in business, but if you act impulsively and forget your end goal then you are setting yourself up for failure.