So... Lord Sugar's predicament - play it safe? Go for the reliable, straightfoward business opportunity within your potential business partner's comfort zone? Or take a risk, have a gamble?
Entrepreneurs are widely known to be risk-takers, yet... when it comes to backing a business, whether it's your own venture or investing in someone else's, strength comes in validating proof of concept; in justifying why a risk is worth taking. As such entrepreneurial risks are always calculated ones.
The greatest risk may be "not to take one", but, as Lord Sugar said of his decision to back Ricky Martin's recruitment business, he needed to go for the business plan which he viewed as the most viable. He stuck to his ethos and kept it "simple and straightforward."
"I've spent the whole of my life in technology and I know that it's a hot market for IT consultants, scientists and software people," said Lord Sugar. "It is a real viable proposition."
Some of those who primarily see entrepreneurs as risk takers were surprised with Lord Sugar's decision. I wasn't. Yes, entrepreneurs take risks, but only if their gut instinct and research backs up that the risk is one worth taking. In seeking out viability and in justifying risk taking, entrepreneurs do all that they can to minimise risks by proving that something will succeed. Success therefore calls for the ability to reduce risks by proving that an opportunity exists – the more you prove it, the less risk there is.
As Nick Britton says in "The True Meaning of Entrepreneurship" in Growth Business here: "Maybe we should amend our notion of a successful entrepreneur from a risk-taker to a risk-assessor. What entrepreneurs do is not the equivalent of spinning the roulette wheel; it’s about knowing when to buy a stake in the casino."
That's what Lord Sugar did.
What calculated risks have you taken recently?
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