Taking Risks - Yes or No

Yesterday, my friend, who's been running a successful business that supports him passively, reached out for advice. He's been developing a new software, and he believes this could be his biggest breakthrough yet. You could hear the excitement in his voice, a testament to his belief in the product’s potential.

He was at a crossroads, contemplating a significant marketing move for the launch. He wanted to create a high-quality advertisement in a top-notch LA studio, envisioning it as the perfect introduction for his software. However, the cost quoted was steep, around $25k, nearly all his savings, sparking a fear of the risk involved. He was worried that if the ad didn't deliver the expected results, he'd have wasted a considerable amount of money.

In our conversation, he sought my opinion on whether he should go ahead with the expensive ad or stick to a more budget-friendly approach that he's always used. While I don’t claim to have all the answers, I shared some insights based on my experiences. I believe that reaching new heights often involves taking calculated risks. However, taking risks doesn’t mean reckless decisions but rather steps into somewhat unknown territories, with outcomes that aren't entirely predictable.

I encouraged him to pursue the ambitious marketing plan. My view is that how we perceive success and failure significantly impacts our decisions. I don’t see choosing the less traveled path and not getting the desired immediate outcome as failure. Instead, I view it as a learning investment. Even if the ad doesn't directly achieve the seven-figure sales he hopes for, it’s a step closer to the success he's aiming for, offering invaluable insights for future strategies.

Additionally, I shared a personal approach that might seem unconventional to some. I often look for signs or feel out synchronicities when making decisions, setting conditions that, if met, suggest it's the right move. For instance, if finding a studio that meets his needs for less than the daunting $25k feels right, it could be seen as a sign to proceed. Conversely, if such an opportunity doesn’t present itself, it might be the universe's way of advising caution.

Rod Robertson, a recent guest on my podcast Shakin' Hands, mentioned the Navy Seals' 80-20 rule. It notes that waiting for complete certainty can lead to missed opportunities. The world and opportunities within it move fast, so waiting until one is 100% sure might mean never making a move. Instead, if you're 80% sure, it might be enough to take that step forward.

In conclusion, the essence of decision-making in entrepreneurship isn't just about the choices themselves but about embracing each step's learning and growth opportunities, guided by both intuition and acquired wisdom.

What are your thoughts? Would you have given him the same or different advice?

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