If you’re reading this because you wish to launch a risk-free business startup, you’ve come to the right place! You’re about to learn how to make your own luck. But first, you need a diagnosis. You have an affliction called risk aversion. This is a common disease which affects about nine out of ten people every day. And the symptoms include stunted growth, misfortune, disappointment, anxiety, and want. So if you don’t wish to be found wanting, read on.
Click play to watch my narrated slide presentation of Risk-Free Business Startup – Really?
- Reluctance to risk-taking
- False sense of security
- Lack of prospects
Even if you decide to work for someone else versus launching a business startup, you’re career will stagnate if you don’t take risks. And you may end up getting laid-off during a down-turn. This is because employers don’t want employees who are unwilling to achieve. Achievements require risk.
When you hesitate to take risks, you think you’re playing it safe. But you’re not. And someone else will capture the opportunities and squeeze you out!
So how can you fight this risk aversion affliction?
Failure is okay
First, you need to learn that failure is okay. Failure is part of growth. And you’ll learn from it. Failure molds and shapes your pursuits. And failure makes you stronger.
After you accept failure as a function of the achievement process, learn how to deal with it. Be sure to follow the three-step course of action which will turn failure into success:
1. Failure acknowledgement
Failure must be acknowledged early-on. If your actions fail, stop what you’re doing right away. And don’t waste any more of your time on a failing pursuit.
2. Failure evaluation
Next, evaluate the failure. Then determine what caused it. You must find out what was missing. And then determine what did you do wrong. Be honest with yourself. You’ll need to learn from this failure.
3. Course correction
Now create a new plan of action. Start by laying out a different course based on this new understanding.
When launching a business startup, always realize that failure is normal in the beginning. And be sure to update and evolve your business startup business model until you get it right. Then, instead of looking for a risk-free business startup, you can start looking to launch a business startup with great potential.
Loss aversion is an economics term. It refers to how people are affected emotionally much more by loss than by gains. Losing $100 has a much stronger impact on us than gaining $100 will. And this emotional impact causes irrational decision-making.
Suffering even a small loss can cause you to feel risk aversion. Please don’t allow this endless cycle to begin. Remind yourself how much you’ve gained prior to your loss. Plan your future gains and remind yourself of these plans regularly. You can do it! And you don’t need to waste your time looking for a risk-free business startup!
The sunk-cost fallacy
The sunk-cost fallacy is a deception which pushes you to continue with a bad decision. You’ve already invested much time, effort, and money. This causes you to believe you must stay the course. You’ll continue even when it’s a bad idea.
Let go of it and start fresh with a clear mind. Success is at stake.
Use a consensus approach for a more risk-free business startup
Include two or more associates in your decision to take a risk. Utilize your network and include your mentors. In this approach, only proceed if everyone agrees.
There are two problems with this approach. For one, groups typically play it safe when making decisions together. This will reduce risk, but it also reduces potential gains.
Another problem is time. Groups take more time to decide than individuals do. In business, many decisions must be made more quickly.
Make your own luck
The term “make your own luck” was born from the idea of calculated risk-taking. Risk mitigation. Risk management. Now that you’re ready to take some risks, let’s look at how you can manage them.
Risk management strategy
Start with threat assessment. What are the threats? What harm can they cause? Detail each one carefully. You don’t want to miss any!
Some threats will be ominous. Others will be small and silly. You can prioritize these threats based on probability and potential harm. Then identify the major risks involved and find ways to reduce them.
What can you put in place to prevent failure? What protections can you create to prevent damage from that failure? Think this through based on your circumstances. You’ll mitigate each risk, one-by-one.
You won’t end up with a risk-free business startup, but you WILL have a risk-managed business startup. Now go, take some calculated risks and be willing to fail. The rewards will be great!
Thank you for reading:
Risk-Free Business Startup – Really?
I’ve included clickable links on certain words and phrases in my blog post to help you find other useful content that I’ve written or content from trusted sources. Please check those out too and have a great rest-of-the day!
Please subscribe to GravyGrowth.com below and RECEIVE:
The Entrepreneur’s Rapid Reference Guide
COMPLETELY FREE – It’s my gift to you!
GET YOUR FREE COPY NOW