Risk is critical
October 5, 2009 – 11:19 am“Play the game for more than you can afford to lose… only then will you learn the game.” — Churchill
The way I read Churchill’s quote above, risk increases perception and learning exponentially. In fact, Landon and I have a running theory that the best way to start liking a sport you hate, or to care about a game you don’t care about is to wager a large sum of money on the outcome. You’d be shocked at how quickly Olympic curling becomes your favorite sport to watch.
In addition, risk is critical because it either motivates (if you take it on) or paralyzes (if you avoid it). The avoidance of risk (not the actualization of it) is by far the most common reason that I have seen startups fail or languish. People naturally do not want to lose what they have, and fear the possibility of taking a step backwards.
Of course, this is horseshit. Anyone reading this right now could take 6 “steps” backwards and still be better off than 98% of the people that have ever lived on this fine planet. The only thing you fear is further departure from your personal high water mark, which is dangerous and nonsense. Think about it…your personal high water mark would make some dopey hedge-fund manager slit his wrists and 20% of your high water mark would make a family in India’s slums jump with joy. Stop looking in the damn mirror for two seconds and start thinking about what you want to DO instead of what you’d like to have.
My money is always on the guy backed into the corner, with everything to lose.
The tough part is voluntarily putting yourself in that situation.
Win.