Contrary to popular belief, entrepreneurs are not risk takers. Most of the entrepreneurs that I know are actually risk adverse. They often start companies because it is too risky to work for someone else and getting laid-off with no notice. Or they might be fired because they spoke out at a meeting and criticized the company's management. It happens you know.
Risk is not easily understood. It is personal to most of us. I do not play the slots yet I have several friends who win "all the time." I know that the slots are fundamentally designed to pay the house more then they pay the user. For me it is too risky. Yet, I will plunk down a few grand or more to invest in a young company --that to me is an investment. Sure it has risk, but it is not mathematically designed to be adverse to me like a slot machine. I see people speed and get away with it. But I know that if you keep on speeding, eventually you will get a ticket. It is risky. It is not risk adverse.
What is the point? In business, risk analysis is paramount. If you are not investing your money, you get up every day and invest your time. Do you do a good job of valuing your time investment? Probably not. We will spend hours evaluating the pleasure risks associated with eating at different restaurants, but often insufficient time valuing the risk of time we invest every day in the wrong activities. Watch out for the time bandits. The bandits will steal you blind if you do not assess the risks before investing your time. Entrepreneurs are very good at not being taken by the time bandits. Are you?
What can you do? Start today keeping hourly track of where you spend your time. Do it for a month. Then analyze it. You will be in for a big surprise.
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