Although we believe we reside in the best entrepreneurial era, we tend to be reminded that history is filled up with periods where risk taking was either encouraged or frowned upon. Whenever a society is inspired to take chances it often yields advancements and drives further appetite for risk. Then, as our risk/reward balance continues to skew, we find periods of bust accompanied by cycles of reduced investment and zero tolerance for risk. This makes more sense whenever we consider our individual feelings on risk taking.
For most people, taking risks is not palatable. It’s no wonder: You’re quite literally stepping outside your safe place and potentially have too much to lose. But if you intend to start your own business, you’re likely to need to get used to it, and understand patience plays a big part.
Richard Branson on TAKING CHANCES
Up to professional risk takers work to create quantifiable and objective decisions, the reality about risk taking is that it’s an emotional game. The excitement of the chance is often as exhilarating as risk aversion is paralyzing. Our previous experiences, whether good or bad, inform our emotions and make us either pretty much more likely to take risk.
Instead of ignoring and stuffing down the emotional areas of risk taking, I favor to handle it head-on in the beginning. Start out with the downside, and have yourself what could fail. Imagine living a life in a global where you took a risk and the worst case scenario played out. How does it feel, what is it truly like and will you handle it? If so, then allow you to ultimately imagine the moderate-to-good case playing out. What does the world appear to be in this scenario and how does this feeling compare to a global where in fact the worst case occurs?
Thriving in Finance Requires Patience and Humility
For example, my emotional link with a cause made a decision to purchase Practice Fusion a worthy risk for me personally. This was in the past, when the healthcare space was seeing hardly any VC attention, therefore the risk was sustained. Also, at that time, there have been 300 competitors and the business had hardly any market share. However, the chance of a global where connected doctors would drive better outcomes and an opportunity to help solve a few of our nation’s healthcare woes outweighed the chance of passing on the investment rather than being a part of this history.
It’s also beneficial to realize that regardless of how exciting a chance, things will need time to play out. You will see frustrations and setbacks, and it’ll be a long-slog regardless of how fast things are moving. Get comfortable there are no overnight successes. Realize you’ll be focusing on this opportunity for a long time, even if it’s successful. Ensure you are more comfortable with that, and make certain the enthusiasm you have can last. This could be more likely for those who have a whole lot of passion for the merchandise or service you’re focusing on.
If you’re more comfortable with the downside, worked up about the upside and ready to handle the ups and downs that include any relationship, then you’re prepared to make the next move and begin investing your time and effort fully available. Remember to repeat the mantra: with great risk comes great reward.
SETTING UP in the Developing World: More Risk, More Reward