Do you consider yourself a risk taker in life, particularly with money? Here’s some insight from Dean Holland on how your level of risk tolerance may be holding you back from achieving your dreams in life and in your business…
“Good morning my friend. Dean here of course, on the way to Internet Profits HQ. Welcome to today’s episode of The Drive. How are you doing?
It is rainy and gloomy here in the UK. Not gonna lie – pretty tired today. I feel low on energy. I wish I’d got up this morning, gone to the gym, done some exercise or something – to really get that blood pumping around my body. But y’know, some days you just can’t do it.
Long, long day ahead right now. It’s like about 8 o’clock in the morning. I’m actually hosting a webinar at 11 p.m. tonight that’ll probably go on to like 1 a.m. in the morning. So what’s that? That’s like a 16 hour day or something? Definitely not one of my typical days anymore – used to be – but not anymore.
But I’m excited because I get to test out a new webinar presentation – a new training – and help deliver more value to people. And I want to talk about something today. Something I’ve been thinking about. And that’s dealing with risk.
How Does A High Level Of Risk Tolerance Help?
I’ve been through a lot of stuff myself. And as I look back, I think I’ve got quite a high risk tolerance. It’s like, I’m not afraid to take risks. I’m not saying risk doesn’t bother me or scare me. But it doesn’t stop me, y’know what I mean? I’m quite a high risk tolerant person.
And because of that, if I look at things over the years, I feel it’s a quality that has got me into some difficulties. But outweighing that are the benefits a high level of risk tolerance has brought me.
I see a lot of people, for example… Y’know, we’re talking of doing webinars… So I see a lot of people when I do a webinar. I see some people that know they need what’s being offered, and they want it deep down. But their fear of taking a risk on themselves, and on the products if their trust isn’t 100%…. The risk will stop them from moving forwards, and they stay in a stationary zone where they feel comfortable.
A lot of people are comfortable to spend $20, $30, $40 or one hundred dollars on a product. And they’ll do that over and over again, amassing thousands and thousands of dollars in spend.
But their level of risk tolerance wouldn’t allow them to spend $5,000 or $3,000 or $2,000 in one go, for something that could help them much more significantly than the tons of fifty dollar products they have sitting on their hard drive. Do you know what I mean?
And so I want you to have a look at yourself and think about this. Think about where you feel your level of risk tolerance is. Are you a low risk tolerance person? Therefore you stay in a low threshold comfort zone? Or do you feel you’re a high risk tolerance person, and therefore you don’t allowed the fears of risk to stop you from moving forward?
The True Value of Taking Risks
Am I talking about being naive and stupid, and making ridiculous decisions because you don’t think anything through? No… But I’ll be honest – I was there, at one stage in my life. That is why I say my high level of risk tolerance has got me into some difficulties.
But what I’m saying is – is that you should realise that all advances and progression in life, generally speaking from my experience, come from taking risks.
Taking a risk;
- To say, “This is what I want to do.”
- On actually doing it.
- On believing in yourself, when others around you may have doubts.
- To invest in yourself, when you’ve been let down before.
- To invest in yourself, when you’ve let yourself down before.
- On yourself, when things have not gone to plan previously.
If you can push through that comfort zone which prevents you doing these things, then you’ll find that you’re actually able to break through and make progress.
I took a risk in moving out of my comfort zone in my home office… Having huge profit margins… To taking on a significant office space for a minimum of five years – but actually a ten-year lease.
Why? Because I went all-in. I took a risk on growing the team. Possibly even before we were financially in a strong enough and clear enough position to grow it as fast as I did. But I know where I wanted to be. And so, what did I do?
I took a risk. A risk that is paying off, that will pay off because I will make it pay off. Often people say, “Why do you put in these long days?” Why? Because I take risks on myself. And sometimes that’s what is required, to make the risks I take pay off for myself.
Are You Crazy Enough To Be An Entrepreneur?
Think about that. Bit of a random topic here today. Discussion of risk and risk tolerance. But I feel your level of risk tolerance will define where you are best investing yourself. I think this is probably why it’s not the right decision for everyone to actually be an entrepreneur, and to run their own business. Because I think you do have to be slightly crazy, and high risk tolerant to run your own business.
It is very much low risk and secure to a degree, to work at a company, get paid a salary, show up every day, do your absolute best, over deliver in your job, and walk out that door at the end of the day. The person running the company has a much higher level of risk, because s/he’s paying those people, paying all the expenses… And only if things are paying off, does s/he get to pay himself or herself.
So different situations suit different people. It wouldn’t suit everyone to be an employee. And it wouldn’t suit everyone to be an entrepreneur. And I think your level of risk tolerance plays a part in a lot of where you will fit in life.
But that being said, don’t accept where you currently fit if you strive for more. That’s where you’ve got to sometimes break through the level of risk tolerance that you may feel you have, and expand into a new role in your life.
So anyway, thank you for joining me here on this journey. Obviously we’re at Internet Profits HQ now. So I bid you a good workday my friend, and I will of course see you with “MOBE FTC Update: How To Protect Your Business And Move Forward” next time on The Drive. Until then, take care.