27 May 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 Craigslist, 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 out for me and I have made a good deal of money from my investments.
Together, with a small group of investors I’ve purchased two homes that were foreclosures being sold on the courthouse steps. Prior to purchasing we did as much research as possible, but there were still many unknowns about the homes as we were not legally permitted to even set foot in them. Thus, we took a risk that their could have been broken pipes, mold, radon, or other problems. With the homes, we did have some unexpected issues arise, but we were still able to come out on top and put a good chunk of change in our pockets. Buying homes at an auction and paying cash is risky, but their sure can be a lot of reward with a little planning and a bit of luck.
Just a couple weeks ago I found a trailer in town for a good price and talked to the person who owned it. I went in on it with a friend of mine. We ended up bargaining with the seller and getting it for a great price. The next week we found a buyer, resold it, and pocketed a good amount of money. We knew the trailer market, had cash on hand, and were able to make some extra beverage money just because we could take a little risk and have some money out for a period of time.
Friends commonly ask how I am always finding good deals and making extra money. I am happy to give tips and help them out. But, they have 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 waste my life away working for the man?” ”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.
“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” - Mark Twain
In my experience I’ve found that entrepreneurs love to enjoy life, take risks, be successful, and try new things. Entrepreneurs are commonly pilots, motorcyclists, into extreme sports, very involved, motivated, and passionate about life. It is so fun to meet and talk with fellow entrepreneurs about business as well as interests outside the workplace. Entrepreneurs are their own breed of people.