Taking Risks in Business

"Courage is valuable when uncertainty is unavoidable. Testing is valuable when it isn't."

A great quote from Dean Jackson talking about advertising and the courage it takes to be an entrepreneur. Isn't the same courage it takes to test your idea/solution against what a market is and isn't looking for.

Entrepreneurs are painted as big risk takers not afraid to jump off the cliff without a parachute, and build the plane on the way down.

I was consulting with a client the other day about growing their catering business. She wants to go from cottage industry to a food truck. The thing is, used food trucks are $50,000- $80,000 and up. And that's hoping they maintained all their equipment and you won't have any breakdowns. But that's the risk of entrepreneurs right...

Because.. If we're true entrepreneurs and not wantrepreneurs we must take risks to follow our dreams. Right? Not really.

I look at risks in Helmets and Seatbelts.

There's the Helmet Risk vs the Helmet + Seatbelt Risk

You pop a helmet on when you're bike riding the neighborhood BUT start riding in the road. That Helmet Risk gets much bigger. Or downhill biking the side of a mountain... that's a BIG helmet risk.

Then there's the Helmet + Seatbelt Risk

You drive to work everyday, put your seatbelt on. You've prepared, you're licensed to operate a machine that could cause irreparable damage. That's a risk you prepare for.

But... Get into a racecar, you put seatbelt, harness, and helmet and protective clothing on for the ride. Thousands of hours of driving, safety and preparation before coming into contact with other racers flying around a circle at 200 miles per hour.

So, what's my point?

In business and in life, take the bicycle helmet risk first. Meaning, don't get a second mortgage on your house on an idea you haven't proved the market wants.

Test the market, do prototypes, do live sales.

Saturday markets first instead of buying a food truck. $100 Facebook ad first not a $1,000 ad. Work from home, don't rent an office. Do the work yourself don't hire. Learn Facebook ads (I'm pointing at me here), instead of hiring a company, that doesn't know your business.

100% be an entrepreneur and follow your dreams, AND protect yourself and your family. If you've got a job, don't jump ship to sell your cool invention (unless you still live with your parents😏). Keep your job sell on weekends. Get trained, take little risks, before the big risks.

Because nobody wants to run head first into a cyclist pretending to be a racecar driver.