Risk vs Reward: Don’t be afraid to go out on a limb!

Saturday Mar. 31st, 2012

As an entrepreneur you are more likely to take bigger risks than the majority of the population. The ability to take risks is important in business and will give  one the chance to make it big. Not every risk you take will pan out, but with careful planning and research you will have a higher chance of succeeding.

I’ve found that on average, the people I know who have actually taken risks have  been more successful in their business careers. I have many friends that have taken the typical career path working in a corporate environment in big cities all around the country. I admire these people and think they are doing great things. However, the corporate environment is not for me, nor does climbing the corporate ladder sound intriguing. Many of these people end up with a good salary, benefits, and the security of working for a reputable company with a good future. The problem is, some people won’t continue to climb the ladder and they will be satisfied with their current situation. Their paycheck, 401k, and medical benefits make them feel secure and unwilling to try something new or start their own business.

Even as a young person, I’ve seen the benefits of risk taking from other entrepreneurs. One hobby I enjoy doing is buying and selling things. I’m always searching Ebay and real estate listings for the perfect item to buy and sell. In doing so, I’ve taken a big gamble on a lot of items hoping they’d pay off. The majority of opportunities have worked, but there are always some that will go sour.

Friends commonly ask how to find good deals and make a little extra money buying and selling. I am happy to give tips and help them out. But, they need to have the ability to take the risk. I’ve found that many don’t. Many don’t think they have the extra $500 or whatever it takes to put into an investment. They might not feel comfortable. These investments will add up overtime and get bigger and bigger. Imagine if you never took an investment opportunity. You would sure be missing out!

So many entrepreneurs that have created successful businesses have put everything on the line. Business owners max out credit cards, cash out 401k’s, and spend life savings on startups. This is a huge risk, but many entrepreneurs are willing to do it in order to follow their passion in life. If they don’t start their dream business, they’ll always have the question in the back of their head… “What if I had started that online business?”  ”What if I had started that business and didn’t work for the man my whole career?”  ”WHAT IF?”

The next time a business or investment opportunity comes along, please take the time to research it. If it looks like a sound business opportunity don’t be afraid to go out on a limb and do it. If you are passionate about it, set goals, and believe in it, good things will happen.

Good luck!

Pete Sveen is a blogger for Think Entrepreneurship.com and owner of SignsofTheMountains.com and Four Zero Six Enterprises, LLC.