Be a Risk-Taker, Not a Risk-Wisher

Entrepreneurship's dramatic growth is attracting those who want to be entrepreneurs but shouldn't be–the dreamers who spend their lives climbing on the bandwagon. They're not risk-takers, they're risk-wishers. How do we tell one from the other? 

It's easy. A risk-wisher merely "goes with the flow," while the risk-taker creates the flow through preparation. Good risk-taking requires preparation. Risk-taking without preparation is gambling. And that's not the business the entrepreneurial achiever is in. 

I started my first business, a franchised restaurant, at age 28. My preparation began at 19 when I started reading every piece of franchise information I could get my hands on. I prepared for nine years before making an investment in the franchising concept. While I'm not suggesting everyone needs nine years to make an effective decision, I am suggesting that successful risk-taking is a planned process. It's foolish to put your money down before your homework's done. 

The unprepared risk-wishers are less likely to achieve for a second reason. They are too sensitive to what others think and therefore will be more inclined to enter a business that projects a desired image. When you make an investment, especially your first one, don't try to impress others. Try to impress your pocketbook. 

Getting a good start on your new business requires more than an investment of money. It requires an investment in knowledge and preparation. To do it any other way isn't risk-taking. It's risk-wishing. And it doesn't work.