How to become more risk tolerant when entrepreneurship feels like a “risky business”?

For someone with business anxiety, taking risks is terrifying. It used to be me.

Can you relate?

I can feel the angst coming through the Zoom video when my coaching clients discuss their fears in business. “Who should I hire?” “What platform should I use?” “What software should I buy?” “How much should I invest in a coaching program?” 

I can sense someone is risk averse, when they have a hard time making business decisions, like applying for an opportunity. They have difficulty deciding on a $200 or even a $50 investment to improve their business. They may even fear hiring someone to help them. These are signs they may be risk averse.

You may have thought that the only risk you’d be taking is, starting the business, but there are lots of risks and tons of uncertainty, throughout business ownership which can be extremely overwhelming.

We must acknowledge the fact that some risks are a very real threat, like losing money, client disputes, hiring the wrong person, or having legal issues. These are some scary possibilities in the entrepreneurship game. 

Let's shift here and talk about getting comfy (yes comfy) with risk-taking in your business, especially when those nerves kick in and you're feeling more inclined to play it safe and stay stuck. 

Here's the scoop on why it's crucial to get cozy with risk and how it can be a game-changer for your mental game as an entrepreneur.

Why Risk-Tolerance Matters to Entrepreneurs:

Picture this: you're playing it super safe, not venturing into any uncertain territories. Sounds cozy, right? Well, here's the thing - playing it too safe can actually put the brakes on your business growth. 

Opportunities for big wins often come with a side of risk. If you're not willing to take a chance, you might miss out on those game-changing moments that could skyrocket your success.

Hiring my first business coach, felt like a huge “financial risk”. I'd never done that before. But after working with a business coach, I had more confidence and was open to taking more risks.

The next risk was driving 5 hours from Ft. Lauderdale, FL to Tampa, FL for a women's business conference, where I didn't know anyone. It was such a transformative experience I signed up for my first high-ticket program. In 3 months of attending that conference, I changed so many things in my life and business.

I learned not to look at everything as a risk, but growth outside my comfort zone.

Boosting Mental Health with Risk-Taking:

Believe it or not, there's a sweet spot when it comes to risk-taking and mental well-being.

Research shows that entrepreneurs who strike that balance between playing it safe and taking calculated risks tend to have lower stress levels.

Plus, embracing a bit of risk can spark some serious excitement and empowerment vibes, keeping you motivated when the going gets tough.

Here’s a mental exercise I’ve used with many clients over the years.

I tell them to remember this mental exercise, every time they’re about to do something scary, new, or exciting in their business. 

It goes like this, "think about a time when you were standing in a line at an amusement park to ride a roller coaster …or some other equally scary ride. Name the emotions you had.” 

Most usually say “I feel anxious” "scared" or "worried". Then I ask about their thoughts, “It’s going to be dangerous" or "I’ll feel sick.” 

I then ask them, “Why do you stay on the line and wait, sometimes up to an hour if you're worried you'll be hurt or feel sick?”

They usually say, “I also feel excited.” "I know I'll be happy in the end."

So this means that you have mixed emotions, but you choose to focus on the good emotion, which keeps you on the line for up to one hour?

We can challenge our thoughts and we can reframe our thoughts, which leads to controlling our emotions.

AHA!  The lightbulb moment is that they can control their thoughts and feelings even when something feels scary or risky. 

Most say after riding the roller coaster, they want to go back again and again because they had so much fun!!!

How to Embrace Risk:

Now, let's get practical. Shifting your mindset is key. Instead of seeing risk as a scary monster under the bed, try viewing it as a chance to learn and grow. It's like flipping the script from "oh no" to "heck yeah, let's do this!"

Knowledge is power, right?

Educate yourself on risk management strategies. When you know how to assess and handle risks like a pro, it's like having a secret weapon in your back pocket.

Baby steps, my friend. Start small and gradually ramp up the risk factor. Think of it like dipping your toes in the water before diving into the deep end.

Each small win builds confidence, setting you up to tackle bigger challenges down the road.

And hey, you're not in this alone. Surround yourself with a team, find your tribe of mentors, peers, or coaches who've been there, done that. If they overcame something you’re experiencing now or they are where you want to be, then they may be the right guide because they understand. Their support and wisdom can be a game-changer as you navigate the wild world of entrepreneurship.

In a Nutshell:

When you embrace risk, you're not just opening doors to new opportunities - you're also giving your mental health a serious boost. So go ahead, ride this entrepreneur roller coaster, lean into that discomfort, and watch as your business (and your mindset) level up.

Journal Prompts:

1. What's the BIGGEST business risk, you took?
2. How did you grow or what did you learn from the business risk?
3. What's a business risk you're scared to take this year, but you know you need to?

Seneca is the founder of The Conquer Network, a personal growth platform for service-based entrepreneurs. The mission is to provide mental health-focused business support for entrepreneurs with online businesses.

Disclaimer: Business Anxiety is not a mental health diagnosis. Coaching is not a replacement for therapy. This article is not medical advice. Please consult a therapist licensed in your state (country) if you are experiencing signs of a mental health disorder. Visit www.nami.org or www.psychologytoday.com

Call 9–8–8 the National Suicide Crisis Lifeline

Contact Seneca Via Website: www.senecawilliams.com

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Source:

Shepherd, D. A., Patzelt, H., & Wolfe, M. (2011). Moving forward from project failure: Negative emotions, affective commitment, and learning from the experience. Journal of Business Venturing, 26(2), 145–152.