… is one of the principles I live by. With anything worth having comes risk. So how do you manage it?
I began answering in the comments, but because it’s an important concept, I thought it deserved its own post.
It’s defined as “A chance taken after careful estimation of the probable outcome…” A lot of people think entrepreneurs are thrill seekers and risk takers. To an extent that’s true. But the difference between a suicide attempt and a BASE jump is calculated risk.
Another analogy I use is blackjack versus roulette. Blackjack can be won, if you know what you’re doing and stick to a well planned system. Roulette is much more random.
We create our reality. Now I’m not talking about anything esoteric here, although that fits too. You can drive by the same tree every day and not see it. That tree essentially, is not part of your reality. Unless lightning hits it and it falls on your car.
Some call it the Law of Attraction, answered prayers, or subconscious manifestations. No matter what you call it – your focus and perception determines your reality.
The more calculated that focus, the better chance you have to craft your reality the way you want it.
Calculating Risk to Create Reality
With any new venture there will be risk. The goal is to determine how much risk and whether it’s worth it to pursue.
There also comes your vision of what the reality of the venture will be. Plans, projections, daydreams, stories – this is the calculated reality.
When you know what you want to achieve, and you know the risks involved, you can plan for them. Anticipate challenges and compensate.
You can’t plan for every contingency, but you can calculate your risk. If done right, those calculations become your reality.
Really that’s all entrepreneurship is – crafting your reality, and managing risk.
Thanks for asking Ellen. Was it everything you expected …?