Risk vs. Reward: How to Process it
What's the worst-case scenario?
I started my first business at age 20. The risk versus reward here seemed like a total no brainer.
When evaluating risk vs. reward, one of the first things I ask myself is, "What's the worst-case scenario?"
Doing this exercise immediately makes things less intimidating and scary. And if I'm able to handle the worst-case scenario, then I'll move forward and not think about it again.
My first personal training studio
My first spot took all of my extra money, plus $1,000 of my friend Justin's.
What was my worst-case scenario? Moving back home and going back to work in the coal mine. I obviously didn't want that to happen, but I wasn't scared to give it a legit shot.
Here's the key
The key is to not be scared. They key is do your homework, make your calculations, and take the worst-case scenario into account.
Can you handle it?
If you can handle the worst-case scenario, then it frees up your mind. That's exactly what happened when I started my first gym.
Control what you can control
I control how much work and effort I'm putting in. I was willing to put in as many hours as needed to make my gym successful.
I wanted to leave nothing on the table. I wanted to feel zero regrets.
I had already lived the blue-collar long work days between the lumber mill and coal mine. I already knew how to work hard.
Roll the dice
I've pushed all my chips in a few times in my life. And I've used this same thought process every time.
What type of dreams do you have? What are you doing to make them a reality? Are you evaluating the risk & reward? What's the worst-case scenario? Can you survive if that happens?
If you're serious about realizing your dreams, these are the questions you need to start asking yourself.