How can we continue to succeed without potentially risking everything? Tony Robbins mentioned an interview before that successful people have two things common: not losing money and asymmetrical reward. Asymmetrical reward is another way of how wealthy people weigh their options of risks and rewards which we can apply to succeed. The key to success is taking calculated risks with minimal risks and maximum positive outcomes, in others words rewards!
Wealthy, successful people do not get lucky overnight. There is more to taking a risk than just plunging yourself into an opportunity. It involves a lot of research and diligence to know and understand the chances of success are higher than failure. Three obstacles we might face when trying to calculate the risks involved the presence of fear, no fear, and emotions.
Sometimes we can confuse our level of fear with the level of risk we might face. The fear we might be feeling can cloud our judgment and overestimate the risk of an opportunity. However, when there is no fear present we can quickly be taken by the excitement and underestimate the risk because we overestimate our abilities and chances of success. There needs to be a balance in our fear and being able to distinguish whether our fear is getting in the way of making logic judgments. Our emotions can be a problem when calculating risks. It’s important to assess the level of risks by looking at the facts which consist of the pro and cons and potential risks and benefits that can come from taking the opportunity. Yes, it’s essential to have our emotions invested but do so keeping a level head. But how can we make calculated risks? Here are few tips to help you calculate potential risks to find success.
Understand the details: knowing and understanding the little details about your decision. This requires research, lots and lots of research to identify potential outcomes of the opportunity you are to take. What the benefits of taking the opportunity? How long will you have to wait to see results? What or how much might you risk and at what ratio? This the time to ask questions you have and to find answers. It’s about assessing the situation before you can make the final decision.
Anticipate Mistakes: a crucial part of making a decision is anticipating the pitfalls and accounting for them. Recognize where there can be mistakes and focus on those to help you weigh out whether you should make the decision or not.
Set Short-term Goals: not all opportunities will have results right away which is crucial to set checkpoints to keep you on track and to follow up. Initially, you want to make sure you have set short-term goals in place before deciding to be able to pinpoint where the highest level of risk is and if you can tolerate it.
Be Ready to Pivot and Willing: when comes to taking risks, you have to be prepared or handle what happens. Being able to know in advance the potential downsides can help you develop and cope when it goes sour. You have to be willing to make adjustments if something doesn’t go as according to plan; it’s like rolling with the punches by acting quickly with precision to keep yourself afloat.
Learning When to Say No: the word “no” is your friend! You can be a great idea thinker, but you can’t always jump on every idea you have. You have to learn when to say yes and when to say no. It’s a vital skill to gain from both a personal and professional aspect. If you say yes to everything, you might miss the chance of saying yes to better opportunities or ideas. Saying yes means you have to assess the opportunity and thought you plan on pursuing which is why you need to know as much as you can.
Taking the Leap: learning to leap when it feels right is the last significant step you have to do. If you have done your diligence and intensive research and you feel good about the opportunity or idea then take the leap. Take the risk after you have calculated the potential loss and rewards. You want to make sure you have the facts before jumping, but you also want to ensure you agree with your decision.
Always assess your opportunity and calculate the potential downsides before making a final decision. Remember you can’t be afraid to fail, how else can you learn to improve and to succeed if fear dedicates the risks you take. You want to find a balance between your emotions and logic as you evaluate every detail to understand everything before making your final decision. Step out of your comfort zone and take calculated risks to find the success you want.