Calculated Risk Taking Leads To Success
Depending on how old you are and when you got into internet marketing you might remember when the internet first came about. People were unsure what this new creation would turn into. Investors were skeptical about spending cash to buy these new things called ‘domain names’ (back then domains cost a whopping $70). Very few people understood this new creation ‘the internet’ and felt very uneasy about the feature of it. Because of this overwhelming skepticism virtually every domain name was available at this time.
So, my question to you is: What did it take for someone to risk the chance of failure and fork over the money for a domain name?
Risk is a major part of most success. People make risks every day weather it’s buying a new house that you can’t afford or making a left turn into on coming traffic. Risks are a part of everyone’s day-to-day life and we have all, at some level, become experts at choosing which risks are worth taking.
In the business world risk taking is one of the most critical aspects separating successful businesses from the failures. Face it the only way to really make money is to take risks and it’s these risks that are the reason why money is made. If making money and being successful was risk-free than anybody could be successful and if everyone was successful than nobody would be. Basically what I’m trying to point out is that people are successful because the unsuccessful are afraid of taking risks. When people are afraid of risk taking it actually leaves an opportunity for someone else to undertake this risk and become successful.
There’s one important aspect to risk taking which I have left out. What about poor risk taking? Think about this: You’ve received some money to invest and you’ve heard that real-estate is a sure way to earn some money. So you call a real-estate agent and you explain that you’re looking for a double to rent out. About one week later you get a call back and the agent says She’s found the perfect house. You’re all excited and can’t wait to see it. Upon arrival you’re excited about the appearance it looks beautiful; it has brand new siding and a new driveway. You do a brief walk-thru of the house and everything is perfect. The price is perfect for your budget so you get out your checkbook and write a check for $150,000. When the house becomes yours the first thing you do is try to find some tenants. The first problem arises, no one is looking for a place to rent. Keep in mind, no tenants means no income. A few months pass and your second problem arises, the market crashes. The value of your newly purchased house drops 15% overnight. But you’re still optimistic because you planed on being in this for the long term, so you move on. Now your third problem hits. It turns out the basement wasn’t inspected well enough before you purchased the home, the infrastructure is unstable and the house needs to be fixed or the house my collapse. The bill is in the tens of thousands.
So what’s the lesson to be learned? You need to make risks in order to become successful and make money but those risks need to be calculated. You can’t just take a shot in the dark, it’s too risky. You need to carefully analyze the risk your about to undertake. You need to figure out the possible outcomes, both negative and positive. Then you need to weight them and determine weather or not it is a good decision. Sometimes it’s not enough to use your currant knowledge to make the decision, you may need to research prior to your decision. If in the example above the person had looked at the area to see if there were people were looking for a place to rent maybe he would have avoided this decision. If he had hired a professional to look at the house prior to the purchase maybe the professional would have talked him out of the house because of the basement problems. Research is really key to good decision making.
Update: Building A Following in Twitter
So a few minuets ago I just reached 2,000 followers! Great new so as mentioned, I was going to buy a macbook air… but i decided to instead by a MacBook Pro! Pictures will be up later.
Building A Following In Twitter
So I have a new goal in mind: to build a massive following in twitter. I have given myself a few goals to help make the process much more enjoyable. When I reach 2,000 followers in Twitter I’m going to buy myself a Macbook Air. I have just started a few days ago really tweeting my butt off and in reward I have gained about 200 new followers (AWESOME). Thanks for everyone who’s following me and if you haven’t already please do so I can get my shinny new Macbook air! 