Do you know that many successful entrepreneurs are not risk-takers? I was taken aback by that in “7 Uncommon Traits of Successful Entrepreneurs” by John Jantsch on his Duct Tape Marketing blog. However, as I reflect on the 20-some years my wife and I built Palo Alto Software, I think he’s right. Here’s what he says, as the second item on his excellent seven-point list:
Risk Averse–This one throws people, but successful entrepreneurs are not any more wired to take risks than most, but they are wired to spot opportunities and possess the confidence that something, perhaps not what was originally envisioned, can be made of the opportunity. They are often better at letting something that’s clearly a bad idea go, limiting the ultimate risk.
I wouldn’t have thought of it this way, but you know, John has it right on that one.
And I liked this one a lot, too:
Planners–This goes hand-in-hand with risk. Successful entrepreneurs enjoy the planning process, not necessarily completing a plan, but this is what makes them averse to taking foolish risks. They often so value the plan for their life that they always hold a glimmer of the vision of the business that can serve that plan.
This is an excellent list. John does it again.
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Interesting way of looking at it. Could be that risk taking is in the eye of the beholder? But yes, I do believe is correct about being able to spot opportunities.
Of course there are some business models in which you don’t risk anything!
Michael: Really? Something for nothing? Buy low sell high? Maybe if you have enough wealth to live off of the interest … but it’s not for nothing that risk and return understand their relationship.
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