Why Risk Is Worth Taking

Why Risk Is Worth Taking

In the business world, everyone weighs risk and reward. The more risk you take, the more potential reward you will see. Quitting my day job five months ago to run my business full-time has been the best decision I have ever made.

When I first decided to go into self-employment, I felt some excitement, but there was also a lot of anxiety and uncertainty. For instance, I wasn’t sure if I was going to have any work the next month. Every day is unpredictable and you never really know where you will be a month from now. Luckily, I made it past those initial speed bumps which can potentially dissuade people from the entrepreneurial lifestyle and instead force them to opt for the predictability of a 9-5 job.

Like I said, I felt a lot of anxiety when I first quit the grind. However, that feeling was soon replaced by excitement as I started to take more risks.

I can’t remember where I heard this quote, but it goes like this: “When you feel anxious and excited at the same time, you know you are doing something right.” This basically equates to the fact that risk-taking is perhaps the most worthwhile and promising thing you will ever do.

People are afraid to fail and that is why they don’t take risks. I’ll tell you from personal experience: Right now, my business partners and I are in talks to secure funding for a risky new business venture. I’ve alluded to this project several times in previous posts.

The new venture is building websites on International Domains (IDN’s) for China. Taking this project on will mean we will have to table all of our other business projects at this time. That is scary because I am now giving up predictable income for possibly big, but unpredictable income.

Who Said That

As risky as it all is, I know I have to take these risks to see the big rewards.

This is going to be a short article, but I really wanted to pass along what I’ve learned from this recent experience. If you want to see big rewards, you must take big risks. This is what I have been doing and it is so damn cool, it’s scary.

25 thoughts on “Why Risk Is Worth Taking”

  1. It doesn’t have to be a matter of taking a risk.

    It’s the “comfort zone” problem for most people – it’s easy to become so used to doing something that it’s hard to see what else is on the horizon.

    Put it this way, if you know 1% of everything there is to know, there’s still another 99% ready for you to explore…

    1. I agree on this point. Starting up a new business does not have to be risky. Specially not with the possibilities of the internet. However, some capital will definately make easier to get something up running. And as for quitting your dayjob, this sure is a risk. I can imagine, getting sucess with your own business is a very rewarding feeling! Somehow, the idea of not knowing the future seems attractive. Thanks for the motivation.

    1. I was actually more able to take business risks when I was married. My ex has a VERY well paying job. I was home with my daughter and used my freetime to monetize my static websites.

      Now I am a single mom and risk taking has me SO fearful! I suppose it is knowing I am IT when it comes to supporting my daughter the right way πŸ™‚

  2. Another quote I’ve heard, but don’t remember who said it goes like this: “The things you fear doing are often times the right thing to do.” So many people fear quitting the 9-5, but often times it’s the right thing to do.

  3. Whatever avenue(s) you choose to pursue which could involve a considerable amount of risk, it is essential to issue due diligence towards the research of every possible angle that could put you in the house of pain. Once you have thoroughly thought through every conceivable negative outcome, you should be better equipped to make a decision based on what level of risk you are prepared to stomach.

    Minimizing your risk through research, planning and foresight are the key foundations required to succeed in any new venture that involve risk.

    It took me 4 years of being a property manager on the side for myself to observe all the workings of student property rentals before I pulled the trigger and bought my first rental property last Sept 2006. I just just purchased my 2nd rental house at the end of May and its already rented out as of July 1st for the next 12 months.

    I will be working with Nate to start my own blog to explain everything in detail about the lucrative property management and property rental markets and everything I have learnt in the last 5 years.

    Cheers,

    Anthony Carbone

  4. “…anxious and excited at the same time…”

    Exactly. Well said. And don’t think that a risk has to be huge like a new business venture. There are smaller ways to get your feet wet in the wonderful world of risk-taking. Think of something that scares you. Public speaking comes to mind for a lot of people. So start attending a Toastmasters club. Break out of your comfort zone. Afraid of driving a stick shift? Get someone to teach you how in an empty parking lot. It’s a useful skill to have. Afraid of cooking something from scratch? Well, you get the idea.

    Make risk-taking a habit in small ways and it won’t seem so overwhelming to take the bigger risks in life.

  5. Y’know when you’re lying on your bed at the end of your life, you’re not going to think to yourself, “I wish I had taken less risks. I wish I had been more conservative and not tried so many new ideas or ventures.”

    Life is pretty short. Shorter than we realize. Why hold back?

  6. Very Proud of you Nate! I have to say that I need to take the risk soon too. Hope everything is well with you . . haven’t chatted with you in a while! probably counting all the cash rollin in, huh?

  7. You are moving into the “next level”. You are stretching and you will succeed friend. This is where the rubber meets the road. You already see the end in mind and it’s the excitement and “risk” that will keep you alert to the opportunities as they present themselves to you. I have been in the same spot before and find myself looking at the next step daily.

    Go for it Nate!

  8. such a great way of putting things into perspective. launching a start-up is the most challenging, scary, and incredible thing i’ve done in my life (outside of get married). i get excited knowing that i’m responsible for my company’s situation; good or bad (hopefully, more good). that is something you do not experience showing up to someone else’s office every day at 8am…
    really enjoy your blog.

  9. Sometimes you cannot just quit your job that easy. Some have families to support, some don’t have some good money in an account to use all those months when business is starting and you’re almost broke.

    I have my design firm after 5 years of freelancing. And I still keep my radio job which pays well. The good thing is that I have to be only 5 hours there in a day, so I can work on my sites at ease.

    Some people have failed miserably in personal ventures .. having your own business is cool, but not many are actually able to run a business. I have seen too many failed ones to be that light into making such a huge leap at once. I would advice caution and step-by-step movement. Assure some money in an account, start small and “smell” the market and move only when you’re ready.

    I had clients from the day 1 of my firm, but that came after some years of testing the waters πŸ™‚

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