CALCULATED RISK - 5th Entrepreneurial Competence

Taking risks is one of the fundamental aspects of entrepreneurial activity. Entrepreneurs are willing to take risks and are aware of what they stand to lose if they materialise. Thanks to this competence, people understand risk as an inevitable part of any business project. But they also learn to identify it, measure it and take measures to reduce risk at any given moment.

A person with no risk aversion is just as dangerous as a person who is too fearful.

The former jump into the pool without water and the latter never advance because they always find a risk.

Entrepreneurs with this highly developed competence are people who constantly calculate, analyse and identify risks.

They take measures and decisions to reduce them and control negative outcomes. In addition, they take action and place themselves in situations that are moderately challenging in relation to their personal situation.
They are therefore always willing to take risks but in a controlled manner.

To be successful we must avoid the "entrepreneur's disease". In other words, thinking only of the positive aspects of the project without analysing the negative aspects that will allow us to make the right decisions.

The big problem with this type of (highly optimistic) person is that any failure, no matter how small, causes great damage and a lot of uncertainty.
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Know your natural risk aversion by comparing it with other people and find out if you are a risk-taker or overly cautious. Provoke risky situations with other people

Also compare whether you are overly optimistic or overly pessimistic.

Start your business by negotiating a lot with suppliers to have low investment and variable costs instead of fixed costs. Start cautiously and when you have reached speed change your economic model by making investments and converting to fixed (leveraging yourself more to improve your scalability).

Knowing your natural tendency will help you to make better decisions, better interpreting your fears.

Ask for criticism of your business, if you notice that when they don't agree with you, you stop listening. .... matter.

Ask a risk analyst from an experienced financial institution or investment fund for a list of possible risks that could affect your business. Analyse the damage each risk would do to you and find measures to mitigate the damage.

Strive to practice the typical behaviours of this competition for 21 days in a row so that they become a habit and you always perform them effortlessly.

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