Cutting the risk

Fear of failing is the biggest obstacle to starting a new business. As you have seen, one of the biggest differences between entrepreneurs and the rest of us is that they don’t see it the same way. Failure is not a dreadful thing but a step towards success. Risk, to them, is about percentages.
What chance does X have of working, and how big is the potential reward?
If it costs me £100 to do X, and there’s a one in ten chance (10%) of it working, it’s quite risky. If it is only going to make me £200, it’s not worth the risk. If it is going to make me £2,000, however, it’s probably worth it.
Having taken the decision to take the risk, the next job is to minimise the risk as far as possible by good planning, careful management, putting in a safety net if possible, having an escape plan, or – safest of all – having enough spare cash so that losing £100 isn’t going to matter too much...............