Take the plunge 5/12
Most people believe entrepreneurs to be the gamblers, the “all-in!” type of people who put everything out there! And yes, we can often hear such stories, as they are the extremes. But the truth of the matter is that most entrepreneurs are not gamblers, they are calculated risk-takers.
Therefore as a person who is considering entrepreneurship, determining what a business will mean to you is a key part to building a business that you will one day call successful. Surely you’ve heard a multitude of stories about the sacrifice and commitment required to launch a business and you’ve thought to yourself – I can do that!
But have you really peeled back the layers and considered all the implications that launching a business would have on various aspects of your life? A big element of consideration when planning to launch a business is the risk associated. Not all businesses require an investment of $30,000, to remortgage your house or to spend all your life savings. But they are rarely free to start and most people launching a business are quickly surprised at the speed that expenses appear. There also are multiple non-financial things for us to invest including time, energy and much more.
Therefore, before you take the plunge, figure out if this is really for you. Ask yourself: what is my risk threshold? Where is my risk tolerance? How far is too far? What it my return-on-invest ratio that makes sense to me? How much money am I willing to put in the business? How much time can I commit every single day to the business, without missing a day, for the next 3 months – is it realistically 30min, 45min, 1hour, more?
Not all risks are as black and white as others. We recommend that you take a moment to consider the various risks that are associated with your industry, your business and the ideal client you have in mind, and consider as many possible impacts. Here are some questions to help you evaluate those risks, and your tolerance to them:
What type of risk am I facing?
What does a calculated-risk look like for me?
What is the risk level of my loved ones (the people who will live the ups and downs with me)?
What type of risk am I facing?
Establish what risks are directly associated to you personally, and to your specific venture. What is it exactly that you’re putting at risk? Your reputation, personal wellness, health, precious time, patience or is it simply a financial risk? All these have to be considered.
Talk to others who are running, or have run, a similar type of business and find out what they risked. Get feedback from mentors and explore industry literature to make sure you know what you are considering.
What does a calculated-risk look like for me?
It’s essential that you develop a good understanding that entrepreneurship is not gambling. It’s about understanding the industry, the company, the area, the client and your potential. It’s about understanding what are your true costs, how far is too far, how much leeway does that give you, what you control and don’t what can you plan for, etc.
As someone who is considering entrepreneurship, you have to change your mindset. You have to move from what are going to be my expenses to what is going to have the greatest potential to generate a return. You have to try to predict what is the potential rate of return on the money, time and energy you are investing and is it worth it?
What is the risk level of my loved ones (the people who will live the ups and downs with me)?
Once you have reflected on your own risk tolerance, it’s important to make sure your family members immediately affected by you becoming an entrepreneur (spouse, kids, live-in parents, etc.) share a similar degree of risk tolerance.
You need to think about things such as how will the business hinder the lives of the people closest to you? Will it affect them negatively or positively? How will you work with your family as a team in order to gain as much support from them? They are not on the same level, try evaluating and talking about your business as an investment. Talk about the future and what that will bring. Are they on board yet?
Once they understand your vision, the business and your plans, it will make moving forward much smoother than if they stood in your way and you are on the same page. Therefore, if you have children or a spouse, you need to understand their risk tolerance and take their opinions into account.
Top Tips from the article:
Risk is not only financial. It’s also has to be considered as an investment in time and in energy.
Remember that most successful entrepreneurs are not gamblers – they are calculated risk takers.
Make sure that you are aware of your personal risk levels in all things and live on the edge, not in the abyss
Establish what risks are directly associated to you personally and to your specific venture
Understand and respect the risk level of your loved-ones.
Suggested actions:
Establish your financial, hourly and energy risk levels
Cross reference them with those of your loved ones
Establish a for & against list of choosing the lifestyle versus finding a great job
Like the article? It triggered further thoughts? Leave us a comment.
For more articles on choosing the Entrepreneur Lifestyle™, suggestions, tools or for inquiries on our trainings, head over to our website www.ela-sve.com or follow-us on social media.
Understand the mindset. Choose the culture. Live the lifestyle.
#businesssuccess #selfemployed #freelancer #entrepreneurlifestyle #startup #softskills #startup #microenterprise #YouEconomy #EntrepreneurLifestyleAcademy #businessowner #strategic #impactful #profitable #consultant #understandchooselive #sustainable #businessfoundation #entrepreneur #entrepreneurship #businessbasics #choice #contractor #businessdevelopment #smallbusiness #owneroperated
Comentarios