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How To Take Risks Without Losing Your Shirt


“Entrepreneurs are natural risk-takers.” I’ve heard that phrase more times than I can count…and it is one of the great myths of entrepreneurship.

In fact, I’ve noticed that entrepreneurs—and business professionals in general—are usually terrible risk takers.

Now don’t get me wrong, entrepreneurs are certainly courageous. They are willing to try a way of life that others are not, and I think that’s why people assume that they are risk takers. However, risk isn’t really the right word. Just because someone does something outside of the norm doesn’t mean that they are doing something risky. And it certainly doesn’t mean that they are good at taking risks.

Regardless of the situation, most risks share one thing in common: It’s rarely the initial decision that dooms a business. Instead, our irrational responses after that decision are what turn regular risks into big failures.

Here are three suggestions for taking risks without going out of business.

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