Risk Is Always Relative

I've always loved Richard Branson quotes. He is not a risk averse entrepreneur, and he inspires me to take risks.

I do, and have, taken risks. Honestly, it hasn't always worked out very well. I have learned a hard lesson - risk is always relative. A risk for me may not be a risk for you. And certainly, a risk for Richard Branson is not the same as a risk for my firm. When Sir Richard says, "every risk is worth taking..." remember that he has a gajillion dollars in the bank when he is assessing the risks to take. You and I do not have a gajillion dollars in the bank, so our decisions to take risks should probably never begin with "every risk is worth taking..."

The decision to take risks is always relative to the amount of money you have in the bank, your comfort with risk, the hiring decisions you are about to make, which client you are about to fire, the narrow nature of your niche, and a million other consequential situations you find yourself in every day. I would say be careful when taking risks. Make sure that risks won't disrupt your current business revenue, or hurt the decisions you are making about your future.

And with anything you read, be careful when taking other people's advice (including my blog posts). Their situation is much different than your situation. What may be right for them in this moment, may not be right for you.

Do you need someone to help you vet your risks? I do that! Email us at info [at] blumercpas [dot] com if you think you could use my help.