If you’re not a risk-taker, you should get the hell out of business.
– Ray Kroc
I read the above quote today, and wondered, is this true? Do you really need to be a risk-taker to be in business? And, if you don’t take risks you should actually get the hell out of business. Because as a business lawyer, our whole being is about reducing risks for clients, not advocating for it.
I have worked with entrepreneurs for 24 years as a lawyer. During that time I have also started and run some of my own businesses as well. Perhaps even some would have considered starting this blog a risk when I did so back in 2006. But never have I looked at risk quite the same way as Ray Kroc professed in the above quote. I do believe that business owners must take and accept certain calculated risks. And sure, I have worked with my fair share of business owners who leap first and worry about the consequences later. But generally, the most successful business owners have a plan or a system that they know or have proven will work. They may have invested capital, which could be considered risky to some, but almost always those business owners knew they could expect a return from that investment. It wasn’t just a shot in the dark.
So in my mind the best business people are “calculated risk-takers”. They don’t just gamble. In my experience, the successful business person actually finds ways to reduce risks as they move forward with their business.
Just thoughts for an entrepreneur to ponder.