Were you ever a daredevil as a kid? I was – and I still have the scars to prove it. I always took a lot of risks as a kid, and I think I have a knack for knowing my limits now, as a result.
Risks aren’t always physical. In fact, most of the risks I take now are more fiscal and cerebral than they are physical. Identifying risk is something that is vital for a company’s survival. You need to know exactly how much product to create, how much to make it for, and when and where to release it. Taking risks can be very, very rewarding – if you know what you’re up against.
Similar to poker, you have to initially assess your risks. Take a look at your current hand and try to make it better. Get rid of the cards that aren’t helping and understand your odds of getting better ones. If the chances are too slim, then the risk is not worth your time and money.
Also, similar to poker, you have to place your bets and ante-up. How much is this risk worth? How much is the reward? Are your opponents going to fold or go all-in? I know my company well enough to tell you which retailers will take us in a second, and which aren’t worth our time.
When I changed BORBA from and LLC to an Inc, there were many risks, but the benefits outweighed them. The risks included losing control of my company, but I was able to work to get investors that believe in me so that there was less risk of losing control.