Risk and Reward

“No risk – No reward”. We’ve all heard that old canard. It implies that if you take more risks, you will automatically receive more rewards.

Anyone who follows that rule in business or in life is leaving success to chance. Entrepreneurs are risk takers by definition. Successful entrepreneurs are smart risk takers. Foolish risk takers make poor entrepreneurs.

In 2015 Tommy Caldwell and Kevin Jorgeson successfully completed a historic free climb of the Dawn Wall on Yosemite’s El Capitan. Conquering one of the world’s most difficult climbs was a great achievement. It also involved enormous risk. The challenge and its risk had to be part of the attraction. The two men certainly have very high risk tolerances.  On the whole, entrepreneurs are similarly inclined, although usually not to such an extreme.

In spite of their daring the risk they took was proportionately measured.  They balanced their risk with expert preparations and extensive precautions. They made an intelligent evaluation of the dangers vs. the prospects for success. Risk vs. Reward.

On the other hand, if they had expected to achieve enhanced success simply by making their climb riskier,….well, they probably wouldn’t be here today.

A good lesson for entrepreneurs.