Are the risks you’re taking too big? Big risks are generally for the young—when fewer livelihoods are at stake and when there’s plenty of time and energy to rebuild or start something new from scratch. If you’ve already spent considerable time and energy building your business, if you’ve already had your share of entrepreneurial adrenaline rushes, don’t risk it all for the next deal.
In the early days, my business partner and I had to double-down with each move forward. Each time we opened another office, we were essentially betting the entire company because we were not willing to wait for our cash to catch up (see PRAT formula for sustainable growth rate). Toward the end, it wasn’t worth it.
With each big bet, the risks tend to increase and the adrenaline rush tends to decrease. It can lead to a chasing, gambling mentality. Innovate and stay ahead of the curve, but resist the urge to bet it all when it’s late in the game. Also know this behavior can lead to Adrenal Fatigue which can impact your health.
