EMMA'S NOTES #39
Taking the right risks.
In his book Originals, Adam Grant debunks the myth that entrepreneurs are exceptionally risk-averse. Statistically, they are not. Grant goes onto explain that in the game we call entrepreneurship it's not so much about not being afraid to take risk or to push yourself to take as much risk as possible. The key is to take the right risks.
What is the right risk then, you might wonder. Well, Grant doesn't answer that question in his book so I was left to my own thoughts and concluded: that depends on what is dangerous to you.
A situation is risky when it exposes you to a potential danger you don't want to be exposed to. It goes without saying that there are some dangers that are universal: not having enough water, food, or a place to sleep. For other things, the danger is subjective, however. What is more dangerous to you: owning a house or having a mortgage? Not knowing how much you will earn the next month or knowing you can't travel till your next vacation?
In the past years, I've practiced a lot with creating a risk portfolio that suits my needs. I've realized that being committed to only one business endeavor is dangerous to me and a risk I'm not willing to take, no matter how persuasive the 'you need to focus your efforts' evangelism might be.
I feel comfortable being exposed to the risk of not knowing how much I'll earn next month, as long as I actively work on creating new streams of revenue every week. I have never minded the risk of not being on track to earn a degree at a university, but now that I've enrolled in a university starting this fall I do feel exposed to the danger of losing some of my freedom of thought. The latter means I have to adjust my risk portfolio and make sure that starting this fall there will be something that protects me from this risk.
In conclusion, the good news is that you don't have to be a fearless Tarzan-like creature to be a great entrepreneur. You do have to define what is a risk to you and adjust your risk portfolio accordingly.
Have a great week,
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Tune written to:
The Few Things - JP Saxe
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