Many Entrepreneurs Take Calculated Risks
It takes a lot of courage to quit your job and run up your credit cards just to start a business. Some people would even say it’s downright risky. This is all before you even know if the business will be successful or not.
It’s normal to be risk averse. It usually means venturing out of your comfort zone. Most people like staying their comfort zone. Entrepreneurs can’t stay there. They have to take some risks.
A person’s risk-taking potential is influenced by several factors, including their environment, genetics, and their past experiences. What gives one person a thrill might make another run for cover. Some adrenaline junkies out there are hard-wired to take risks. You see them climbing up the sides of tall buildings or jumping out of airplanes. Most people will take small risks if they know there is going to be a good payoff on their investment at the end.
We all have an enzyme in our brains called monoamine oxidase (MAO). This is what keeps our impulses in check. People who have a shortage of it are more likely to be risk takers.
So, to answer the question about whether entrepreneurs are risk takers… it depends. Are you someone who always chases after the “get rich quick” schemes? Are you the kind of person who takes calculated risks to make your business better? If you don’t take some risks, you’ll never know your true potential. In that sense, all entrepreneurs are risk-takers. It just depends on the degree.
You can’t be stuck in neutral for fear of making the wrong decision. You might miss the best opportunity out there.
Entrepreneurs have to make decisions every day. Make the right decision and you could become very wealthy. Make the wrong one and you could become bankrupt. It’s enough to stress out the calmest of us. It’s always going to have some uncertainty associated with it. If we could predict the future we would all be rich.
A good entrepreneur will learn from the bad decisions and correct them quickly. They will also be less likely to repeat the bad decisions. And they will learn to trust their gut to figure out the right path.
Copyright (c) 2010 Julie Austin