Nike took a $14 billion risk on Stephen Curry we can all learn from

Risk is woven into the fabric of life. Every time we walk step outside we must decide to take certain risks and shy away from others.

If we had to create a T-chart for every decision we made throughout the day, we would never get things done. Imagine weighing the pros and cons of what bathroom stall to use.

Luckily, we have our intuition to lighten this load. Intuition isn’t the same across the board, though.

Some people let their intuition lean to the side of safer options, like never trying the tuna salad sandwich at your local deli despite everyone raving about it. Others let their intuition lead them to frequently act, like the person at your office who has no filter in business meetings.

There’s a balance to all of this and it lies in a method I call the risk of creativity. We can learn a lot about taking risks from the top creatives in our lives and in the media.

Whether we look at artists, entrepreneurs, musicians, actors, web developers, etc… people who mold their own path understand the importance of risk.

Often times people think creativity is a massive, one-time gamble that’ll either go amazing or horrible. But, that’s just not true.

What most creatives realize is that It’s about taking small risks to gain personal and public momentum until you are ready to take a larger gamble.

Sometimes these small risks can be internal and come in the form of skills or knowledge.

For instance, while attending university in the 60s, Phil Knight learned a lot about industrial Japan. After he graduated, he decided to take a few months and travel the world, making a small pit-stop in Japan, on the random chance he could speak with some shoe manufacturers.

Well, that small risk paid off and he inked a deal on this trip.

Other times, these small risks can be external, like how Phil would work two jobs, one as an accountant and the other running Blue Ribbon (eventually Nike).

While he didn’t take a complete leap of faith, he understood the principle of gaining momentum through small risks.

It’s these small risks that provide feedback, to test the waters for bigger risks.

In corporate America, one might try making small suggestions in marketing meetings, before dropping an idea for a complete campaign.

It’s a beautiful thing when a big risk pays off because now you are what I like to call “hot”. However, it’s easy to fall off and allow yourself to let this momentum carry you. Now, more than ever, it’s important to capitalize because momentum can fade really fast.

To revisit Nike, they recently made a huge mistake in getting complacent with Stephen Curry. Curry was originally endorsed by Nike in 2012. Clearly, as an up-and-coming star, Curry was a hot commodity, but not quite on a LeBron James or Kobe Bryant level, as he is now. Nike assumed that their momentum was hot enough for Curry to stay with them no matter what.

Nike didn’t give Curry the attention he needed (a monumental risk), thus losing him to Under Armour in 2013. Yes, this is just one player, and what’s one endorsement loss to Nike? Well, the Curry franchise is worth $14 billion...so, I’d say it was a big loss.

This wasn’t all Nike’s fault, though. Under Armour followed the principle and took a small risk in Kent Bazemore--a rookie teammate of Curry’s who had no business getting endorsed. Under Armour showered Bazemore with shoes and apparel, and Curry noticed this.

In 2013, Curry signed an endorsement deal with Under Armour, sealing not only Curry’s fate but also injecting Under Armour into the realm of basketball (these were the first two basketball players to be endorsed by Under Armour).

Risk can be frightening, overpowering, and seemingly impossible. But, no matter who you are it is inevitable to living the life you want to live.

Whether you are risk-averse or a big risk-taker, we can all better our ourselves through building momentum with small risks, until we have enough chips (and confidence) to go all-in.

Even creativity starts with a small risk, which is being receptive to inspiration. That’s why I created Quick Theories, a brief, weekly newsletter aimed at bringing out your inspired self through creative insights. So, take a small risk and see what happens. You might just end up with your next big idea. You can sign up here: quicktheories.com