_edited.jpg)
When you think about entrepreneurs, you might imagine fearless risk-takers jumping into the unknown. But Jeff Bezos, the founder of Amazon, has a different take on what makes a good entrepreneur. According to him, successful entrepreneurs don't love risk—they aim to reduce it. Here's a look at how Bezos's approach to minimizing risk can help you succeed in your ventures.
Photo: GeekWire Photo / Alan Boyle
Reducing Risk from the Start
Starting a company is inherently risky. You're venturing into new territory, and there's a lot at stake. But Bezos emphasizes that good entrepreneurs don't just accept this risk—they work to reduce it step by step. The goal is to systematically eliminate risks in those early days, turning a risky idea into a more stable and promising venture.
The Role of Luck
Bezos acknowledges that luck plays a significant role in any successful endeavor. Amazon, for example, has benefited from what he calls "planetary alignment of the highest order." While you can't control luck, you can control how you prepare for and respond to opportunities and challenges.
Identifying and Mitigating Risks
In the early stages of building a company, one of the most crucial tasks is to identify potential risks. This means looking at every aspect of your business and figuring out what could go wrong. Once you've identified these risks, you can start working on ways to mitigate them. This might involve improving your product, refining your business model, or securing additional funding.
Taking Risks as You Grow
As your company grows and becomes more robust, the dynamics change. With a solid foundation in place, you can start to take risks again. But these aren't the same as the reckless risks you might take at the beginning. They're calculated risks, informed by data and experience, designed to push your company forward without jeopardizing its stability.
The Bezos Blueprint for Success
Start with a Good Idea: Ensure your business idea is solid and has potential.
Reduce Risk Step by Step: Systematically eliminate risks in the early days.
Acknowledge the Role of Luck: Recognize that luck plays a part, but don't rely on it.
Identify Potential Risks: Look at every aspect of your business to find what could go wrong.
Mitigate Risks: Work on solutions to minimize these risks.
Take Calculated Risks: As your company grows, take informed risks to drive further growth.
Conclusion
Jeff Bezos's approach to entrepreneurship highlights the importance of managing risk. By systematically reducing risks in the early stages, you can build a more stable foundation for your business. As your company grows, you can then start taking calculated risks to drive innovation and expansion. This balance between caution and boldness is key to long-term success.
So, if you're starting a new venture, remember that being a good entrepreneur isn't about loving risk—it's about managing it wisely. Follow Bezos's blueprint, and you might just find yourself building the next big thing, with a bit of luck on your side.
Listen to Jeff Bezos:
Comments