An entrepreneur by definition is a person who takes risk for the potential of high rewards. There are many people that consider themselves entrepreneurs because they work for themselves, but are they really entrepreneurs? Are you actually taking significant risks to grow your business? Or are you just playing it safe to generate “safe” returns?
If you own your own business but take zero risk day to day then I hate to break it to you but your not an entrepreneur.
When I first got started I realized that in order to make any money online I was going to have to take a good amount of risk to get where I wanted. For my business the risk I was taking was buying ads. I had to experiment with lots of different types of ads before I found what worked. In the beginning I lost a lot of money. As a matter of fact for the first two entire years I didn’t put a single dollar in my savings account.
However, by working through this process I learned tons through trial and error. After a few years I was able to refine my media buys to stop losing money and go into profit.
The truth is, if your not willing to take big risks to achieve your goals in business then you just don’t deserve it.
You need to be smart about what risks you take. This is called taking “calculated risks”. I only take risks that I know have a chance of high upside if all goes well. Of course this has backfired for me, but generally speaking it has worked out so far.
Heres an example of a risk you could take in your business:
Right now lets say you own a business and are driving all of your sales organically or via word of mouth. Your product is proven and you know people like it. A good risk to take would be to spend $10,000 on testing Facebook ads. If all fails, you lost $10k but learned about Facebook ads. If all goes well you could explode your sales into the seven figures with a profitable campaign.
These are the kinds of risks you need to take to break through as an entrepreneur.
As an exercise take out a piece of paper and write down 5 “risks” you could take this week that could potentially bring high returns.
The types of risk you take will depend on what business your in.
What do you stand to lose by taking this risk? What is the upside?
This activity will help you work out your “risk muscle” and start thinking bigger.