Comments on: The importance of risking everything

By: Jimmy

Jimmy — Thu, 29 Sep 2011 08:33:00 +0000

All in, no going back, everything….sounds more like a description of a desperate red or black bet at Montecasino than advice on the passion required for being an entrepreneur…having started my first business in my early twenties and as an investor in many start up’s since, I’m with Greg on this….any “entrepreneur” who pitches a red or black, all in bet to me is not going to get my money…unless they happen to be one of my children, in which case all bets are off the table….

By: Greg Mahlknecht

Greg Mahlknecht — Wed, 28 Sep 2011 21:05:00 +0000

I didn’t in any way say taking risks was a bad thing. It’s the “risk everything” attitude which I take exception to. I’m an entrepeneur (well not by AKG’s terms!) but at no point would ever have risked my house and family’s well-being. It looks AMAZING when it works in Hollywood movies, but the real world doesn’t work like that. In Hollywood movies, they get the billion dollar cheque 3 hours before their house is reposessed. In the real world, the sherriff comes to evict you.

I’d go so far as to say a great entrepeneur is one who has plans B, C and D ready to rock. In my case, a Plan B ended up paying for Plan A and allowed me to eventually do Plan A full time, and seriously. If I’d not been willing to, as you say, “modify my course”, and instead go with the “No Plan B, Sell my house” idea… I’d be deep in debt, churning out some boring code for a bank back-office system or something, right now.

By: Upset Entrepeneur

Upset Entrepeneur — Wed, 28 Sep 2011 13:03:00 +0000

Very well said Greg. I know of at least one great idea that was pitched to his daddy by entrepeneurs, just to be shot down by Vodacom and then all of a sudden appearing in Jnr’s company – balls my foot, totally skelm yes!

By: Anton D Potgieter

Anton D Potgieter — Wed, 28 Sep 2011 10:01:00 +0000

This is an intriguing article, worthy of the debate below. I don’t support all of AKCJR’s points, nor do I support all the comments. But I have these observations to add:
- this article could only have been written by someone who has has early success as an entrepreneur – if he had flamed out spectacularly in his first entrepreneurial attempts, the article would in my mind hav been written quite differently!
- your risk appetite drops with age and responsibility (naturally), and ”what you have to lose” increases – therefore when these two curves cross over, you are likely not to embark on any more “all or nothing” ventures, but instead to become a more “cautious” entrepreneur – it makes you no less an entrepreneur though.
- I certainly like the idea of “crusading” for more than mere money – I am not sure that forms part of the definition of an entrepreneur, but certainly it is a trait of many successful ones, possibly the most admirable trait.

By: Keithff

Keithff — Wed, 28 Sep 2011 07:01:00 +0000

I disagree with you on this Greg, if it was not for the risk takers there would be no business. yes we do look into all the possibilities before taking the risk, you can only modify your course during the trip. How many times have you had an idea for a business, then decided the risk was too great only to see someone else try it and win. Sorry it is no longer your idea

By: Greg Mahlknecht

Greg Mahlknecht — Tue, 27 Sep 2011 20:51:00 +0000

>>The key ingredient is “risk everything”: all in, no going back, no plan B, sell your house if it doesn’t work. This is not easy. This single element — everything — separates the entrepreneurs from the business owners.

Strongly disagree. It’s more important to know when to cut your losses and retain enough of your life to try another idea. This article reflects Hollywood cliche more than reality. I’ve seen a number of entrepeneurs over the years wager their house, family and savings and losing some or all of those. It breaks you. It’s not worth it.

I think this article is really HORRIBLE advice, and would caution budding entrepeneurs to think before buying into its ideas. Carefully calculated risks and keen foresight is what makes an entrepenur succesful, not gung-ho “I’m Insane!” attitudes. Yes, it’s worked in the past, but for every one succesful entrepenur that sold his house and ate beans out of cans for a year, there are dozens that have lost their families or have been forced back into the rat-race to do a job they hate for decades to mop up the mess their failed venture left behind.

By: Dantex

Dantex — Tue, 27 Sep 2011 19:23:00 +0000

Erm, yeah, when you have daddy to fall back on when ‘everything’ doesn’t pan out…

By: B.Bence

B.Bence — Tue, 27 Sep 2011 15:33:00 +0000

Finally some wisdom and pure motivation! thanks for the article