K-MAS Management“The greater the risk, the greater the reward.”
As for risk, it has been long considered the secret ingredient to every entrepreneurial success. Most entrepreneurs quite often credit their willingness to take risks as the fundamental and significant reason behind their success. Risk and entrepreneurship are more than entangled, they are the same, and that is one glimmer of reality that remains. The entrepreneur – risk relationship often referred to as a risk-return tradeoff where a potential return rises with an increase in risk. Therefore, this is considered the principle and a key part of entrepreneurship where investing money and time that we have into an idea can generate higher profits and require us to accept the higher possibility of losses.
Let’s look at Kevin Zhang’s reality which he came to terms with as a young entrepreneur. Although he began chasing his vision at 23 with little-to-no capital, he’s now a successful serial entrepreneur and the owner and founder of a global business that successfully sold products to hundreds of thousands of customers and employed 50-plus team members around the world. It all began with highly-focused determination, a dash of luck and naturally, an inclination to do what that adage tells us: take a significant risk, reap the great reward.
Too many aspiring entrepreneurs, especially in e-commerce, are obsessed with getting lucky, stop hunting for the pot of gold under the rainbow and pursue something you’re actually interested in. It’s not going to be easy either way, so you may as well enjoy the process
– Zhang Said.
Therefore it’s essential to understand that risk and entrepreneurial reward is the double helix DNA of a successful business. You basically can’t have one without the other. So, the biggest question remains, is risk-taking points to entrepreneurial success? The concept of risk is tricky, especially when it comes to entrepreneurial business endeavours. But why does risk-taking often go hand-in-hand with entrepreneurial success? To simply put it into, risk can help an entrepreneur stir the pot, make a change, and insert yourself into a minority group of risk-takers—naturally, most people are risk-averse. Above isn’t to say that taking risks is easy.
As humans, we automatically consider risk as a dangerous thing, making us feel anxious and out of sorts. But the willingness to take risks can do several things for entrepreneurs – it can present new opportunities, it can minimize the competition you face, and it can even make you happier. As an entrepreneur, risks are part of the game you’ve decided to play. Unexpected risks as well as calculated risks, anyway – are necessary. Of course, calculated risk comes with some stipulations. Embracing risk as part of the entrepreneurial process doesn’t mean tossing your capital to the wind, going with your gut, and blindly risking everything you’ve worked. Know your odds, know how to maximize your chances, and if the calculated risk is worth it—take it.
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