Greg Balanko-Dickson
Everyday entrepreneurs seek to find a balance between the risks and the rewards. Personally, I have found that it is so easy to fall into the trap of believing my own sheepdip and so anything I can find to help remove my personal bias is a welcome addition. So when I saw that Tony from Success from the Nest had a post over at Lifehack titled Risk versus Rewards I was intrigued.
I am just getting to know Tony and obviously he has been ‘around the block’ in business. For a ‘creative guy’ he seems to have a fair share of analytical skills. You can read his post and get the Risk versus Rewards excel worksheet.
As Tony states “What you end up with is a clear picture, based on your own thoughts about specific factors, of which direction to take.” Therein lies my concern and advice to be cautious in how you interpret the resulting graph.
“As an example, let say you’re trying to decide whether to go skiing this weekend. You’d begin by listing the rewards - such as fun, seeing friends, etc. - along with a weight on a scale from 0-5 on the importance of each reward. Next you’d list the risks - you can’t ski, breaking something, death, etc. - and the weight of each risk. The worksheet uses a simple calculation to determine the outcome, and displays a message along with a simple bar graph of the results.” Via Lifehack
The is nothing wrong with the tool as long as you remember that it simply reflects a picture of the risks versus rewards based on your own thoughts about specific factors - just make sure that you do not start to believe your own stories. Whenever you are making any major decision make sure that you ask yourself quality questions to uncover other factors that you may have missed.
What information are you missing?
What other factors need to be included?
Who do you trust that can review your list and make suggestions and observations on what you may have missed?
Is this a decision that could escalate into a make it or break it situation? If so, you need to look deeper for information and factors you may have overlooked.
Take your time when making major decisions, look for confirmation from various sources, use logic, and tools like Tony’s Risk versus Rewards worksheet.
Greg Balanko-Dickson
The Business Performance Coach
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Looking at a variety of internet business is a good idea. Have a book and take notes on the different business you visit. Always go back through them before making a final decision. The second time through, you know more about what to look for.
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