I got the following email from a friend through Producer Revolution. I can’t say enough how much I agree with this email. I used to shy away from starting my own thing because I do not consider myself a major risk taker. However, after reading The E-Myth, I have come to understand that entrepreneurs are, in fact, all about reducing the risk. Of course, there are risks involved, but by practicing solid business principles, you greatly minimize the risk and don’t just dive in and see what happens.
I feel that entrepreneurialism is more of a mindset than anything else. You are consistently trying to keep yourself in check, in balance if you will, of your three “selves”of: technician, manager and entrepreneur. This isn’t easy but if you are honest with yourself about your progress and realize that you need to evaluate yourself daily, you can be extremely successful.
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One of the fallacies of the traditional financial industry is that one must be willing to tolerate high risk in order to enjoy high returns. The irony is that Producers are seen as high risk-takers, yet in reality, they do everything in their power to mitigate risk. One of the most influential and widely read modern business thinkers, Peter Drucker, shares a story in his book Innovation and Entrepreneurship that speaks of this. He writes, “.I attended a university symposium on entrepreneurship at which a number of psychologists spoke. Although their papers disagreed on everything else, they all talked of an ‘entrepreneurial personality,’ which was characterized by a ‘propensity for risk-taking.’ A well-known and successful innovator and entrepreneur.was then asked to comment. He said: ‘I find myself baffled by your papers. I think I know as many successful innovators and entrepreneurs as anyone, beginning with myself. I have never come across an ‘entrepreneurial personality.’ The successful ones I know all have, however, one thing-and only one thing-in common: they are not ‘risk-takers.’ They try to define the risks they have to take and to minimize them as much as possible. Otherwise none of us could have succeeded.’” Drucker then concludes, “The innovators I know are successful to the extent to which they define risks and confine them.Successful innovators are conservative. They have to be. They are not ‘risk-focused’; they are ‘opportunity-focused.’”
