Aug272007
Balancing your confidence against risk
Here’s an easy “math problem” you should calculate: what is your risk-to-confidence ratio?
You might be wondering what I’m talking about. Well, it’s actually a straightforward concept, and it’s something that everyone should take into account when starting their own business… or making any important decision that involves both reward and risk. Let me explain.
The number one ingredient needed for success is confidence: confidence in yourself, in your abilities, in your vision.
But, a rational and clear-headed awareness of the risks involved in tackling something new is just as important. And, you should analyze and determine what tools you’ll need to acquire or what steps you’ll need to take to overcome those risks or hurdles.
I’ve blogged before about building your confidence. And, I’ve written about the ways to prepare yourself for the risks in life (education, resources, mentors, etc.), no matter what the challenge. But which one is more critical to success?
On one hand, it’s very difficult to be a successful entrepreneur without confidence. But, being too confident can lead to costly mistakes and bad judgments, like over-extending and over-spending.
So, your risk-to-confidence ratio should be 50/50… an equal split. The two – risking the unknown versus your keen belief that nothing can stop you – must be balanced.
Know that you WILL overcome any challenges and create success, but have a plan, be well-informed and be prepared for what lies ahead.
Warmly,
Russ
Founder of Winning in the Cash Flow Business
Dalbey Education Institute
Founder of Winning in the Cash Flow Business
