Many entrepreneurs dream of making millions of dollars from starting their own business.
However, few people make it to this level of wealth.
You might ask why this is the case.
Is it just pure luck? Are some entrepreneurs smarter than others? These are probably not the right questions to ask.
The fact of the matter is that to succeed one must take risks.
A business owner undertakes a huge amount of risk by deciding to "go at it alone.
" Depending on his product, service, business idea and zeal, he probably has his reputation, his financial worthiness, and dignity riding on the line.
The idea of having your livelihood at stake scares some people to the point on not taking the chance to earn millions.
So what exactly is risk? Risk is a kind of uncertainty in which there are negative, even catastrophic consequences for a supposed action.
In the business world, we try our hardest to avoid risk by measuring it.
Measuring risks somehow makes us feel better about the future.
The hope that comes with this measurement, though, does not remove the risk.
Potentialities of disaster are still there, no matter how we view the situation.
So what differentiates the risk taker from the risk avoider? The answer to this question is a matter of attitude.
How does the individual choose to view the situation? In other words, what exactly is it that the conscious observer focuses on as a potential outcome? This difference in perception and its relationship to our feelings affects our decision-making process, not only in our everyday lives but also in very big decisions, like starting a business or applying for a loan.
For example, if someone is at a casino and is presented with an offer to bet ½ odds to double his money or lose it all, he has a choice to make.
He must decide between betting, and not betting.
A risk taker, in this situation, would make the bet, believing that the chance that he could double his money is worth the risk of losing it all.
He focuses on the dream, the vision of succeeding.
A risk avoider, on the other hand, would choose not to bet, because he would rather keep his money than risk losing it all.
He focuses on the fear, which keeps him at bay.