“True entrepreneurs are rabidly risk-averse – they will do
whatever it takes to remove the risk from their ventures. However, the
more work you put into the front end of your business idea, the more you
increase your odds of success.” -K. MacKillop, Serial Entrepreneur
Starting a business is certainly not for everyone. But MacKillop raised another intriguing idea as well: Aside from the perceived risks to your personal finances, your lifestyle and your career, he noted, there are some people who just can’t cope with the thought of failure. The idea of the damage to their personal brand (again, to the ego) is a devastating idea for them.
“The primary concern for most non-entrepreneurs is that if they fail, they will become known as the guy [or girl] who couldn’t cut it on their own,” he said.
What an interesting thought.
People worry that others will view them as a loser if they try out a business, or a project, or a skill, and that it will cost them whatever credibility they may already have. They fear it will be far more difficult to find another opportunity or another job after a business or a project failure, because others will question their competence or even their worth.
Perhaps the reality can be different if you are open to the possibility that you are making the most courageous choice of your life when you are willing to put your whole self on the line for a new project, to test an idea, or to take a shot at creating a better and happier life.
When you look at it from this perspective, you are also open to the possibility that many people will ultimately respect your choice, even if (and especially if) you should fail. You might also inspire others to discover their own courage to try something new and out of their comfort zone.
Interestingly, in his recent keynote presentation for the Utah Technology Council (UTC) in SaltLake City, Amazon CEO Jeff Bezos, Fortune Magazine’s 2012 Businessman of the Year, stated openly that the defining moment in his decision to start Amazon came about as the result of the thought of looking back at his life when he is 80 years old.
If he were to fail, he could live with that outcome, he realized—but he would not have been able to bear the regret of knowing he’d had the opportunity to “go for it” but hadn’t had the courage to try. That, he realized, was the much bigger risk.
K. MacKillop went on to say, “The trick for coping with possible failure comes down to how you handle it. For successful entrepreneurs, failure is good news – now they know what not to do.”
I agree. And in fact, I go one step further: Every day I guide our Fishbowl team to “Fail Up” and embrace our failures. We celebrate and honor the opportunity to move forward with full force and knowing that mistakes are some of the most essential steps in the process. It is our mistakes that present us with incomparable opportunities to grow and to learn.
The vast majority of successful business owners have failed multiple
times before they found outstanding success. I am no exception. Neither
are the majority of the tremendous executives I work with, both within
and outside of our company walls.
As to the statement that true entrepreneurs are rabidly risk averse–Yes, there is some truth to that fact. Here’s how that principle is working for us.
We manage our company’s risk by operating on a cash basis. We are debt-free. We only buy what we can pay for. Because we avoid debt, we don’t incur the level of financial risk that other companies may. We pay our bills immediately. By doing this, I am able to rest more easily with the assurance that we areable to go home each day with all bills paid, and with no debt. If conditions changed, I am solid in the knowledge that we could last for 60 more days, if needed, without the requirement to pay further bills.
Because everyone in the company is paid a base amount plus commission, the costs associated with payroll are able to slide up and down organically. This provides a natural protection for both the company’s financial risk and the employees’ level of assurance about keeping their jobs.
We manage with complete transparency. Everybody knows fully and accurately where the company stands. The full disclosure and knowledge helps to alleviate fears, and it also helps to educate employees on how to run a business, as well as how to manage their personal and family finances with skill.
David K. Williams Contributor In every direction there is uncertainty, fear, trepidation, and yes, a substantial perception of risk. “Am I working for the right company? Could I be working for a better company? Would I be able to succeed and would I be glad I’d moved forward if I started a company of my own?”
Take the leap - what's stopping you?
Starting a business is certainly not for everyone. But MacKillop raised another intriguing idea as well: Aside from the perceived risks to your personal finances, your lifestyle and your career, he noted, there are some people who just can’t cope with the thought of failure. The idea of the damage to their personal brand (again, to the ego) is a devastating idea for them.
“The primary concern for most non-entrepreneurs is that if they fail, they will become known as the guy [or girl] who couldn’t cut it on their own,” he said.
What an interesting thought.
People worry that others will view them as a loser if they try out a business, or a project, or a skill, and that it will cost them whatever credibility they may already have. They fear it will be far more difficult to find another opportunity or another job after a business or a project failure, because others will question their competence or even their worth.
Perhaps the reality can be different if you are open to the possibility that you are making the most courageous choice of your life when you are willing to put your whole self on the line for a new project, to test an idea, or to take a shot at creating a better and happier life.
When you look at it from this perspective, you are also open to the possibility that many people will ultimately respect your choice, even if (and especially if) you should fail. You might also inspire others to discover their own courage to try something new and out of their comfort zone.
Interestingly, in his recent keynote presentation for the Utah Technology Council (UTC) in SaltLake City, Amazon CEO Jeff Bezos, Fortune Magazine’s 2012 Businessman of the Year, stated openly that the defining moment in his decision to start Amazon came about as the result of the thought of looking back at his life when he is 80 years old.
If he were to fail, he could live with that outcome, he realized—but he would not have been able to bear the regret of knowing he’d had the opportunity to “go for it” but hadn’t had the courage to try. That, he realized, was the much bigger risk.
K. MacKillop went on to say, “The trick for coping with possible failure comes down to how you handle it. For successful entrepreneurs, failure is good news – now they know what not to do.”
I agree. And in fact, I go one step further: Every day I guide our Fishbowl team to “Fail Up” and embrace our failures. We celebrate and honor the opportunity to move forward with full force and knowing that mistakes are some of the most essential steps in the process. It is our mistakes that present us with incomparable opportunities to grow and to learn.
One of Fishbowl's youngest heros: employee Nathan Bleak's son. (photo courtesy of Fishbowl)
As to the statement that true entrepreneurs are rabidly risk averse–Yes, there is some truth to that fact. Here’s how that principle is working for us.
We manage our company’s risk by operating on a cash basis. We are debt-free. We only buy what we can pay for. Because we avoid debt, we don’t incur the level of financial risk that other companies may. We pay our bills immediately. By doing this, I am able to rest more easily with the assurance that we areable to go home each day with all bills paid, and with no debt. If conditions changed, I am solid in the knowledge that we could last for 60 more days, if needed, without the requirement to pay further bills.
Because everyone in the company is paid a base amount plus commission, the costs associated with payroll are able to slide up and down organically. This provides a natural protection for both the company’s financial risk and the employees’ level of assurance about keeping their jobs.
We manage with complete transparency. Everybody knows fully and accurately where the company stands. The full disclosure and knowledge helps to alleviate fears, and it also helps to educate employees on how to run a business, as well as how to manage their personal and family finances with skill.
- Author
David K. Williams, Contributor
