Risk appetite

By Mark Jones

What’s your risk appetite? Mine’s quite high, but there’s a catch

Ever wondered what it takes to bring a really big idea to life?

Maybe it’s grit? Steely determination? Lots of money? And while you’re at it, throw in a little crazy.

I’m getting close to finishing the first full edit of my second book and it’s an idea that’s been rattling around in my head.

Why? Because professional speakers, authors and coaches like me live a crazy, high-risk lifestyle.

Delivering keynotes, writing books and hosting workshops is not what you’d call stress-free, predictable employment. It’s high risk, high reward and a hustle culture that never stops.

In fact, back in Covid-days, we speakers watched in horror as forward-bookings for keynotes and events suddenly vanished.

At the same time, I’ve been self-employed for 15 years as the co-founder of an agency that now delivers a mixture of professional services and events. That makes me an entrepreneur of sorts, and someone comfortable with high-risk scenarios.

What’s your risk appetite?

I was chatting with one of my colleagues recently and she was counting the cost of leaving stable employment for more time dedicated to speaking.

It’s a big conversation, but the short story is her risk appetite was a little different to mine – just as it is for everyone.

Regardless of your circumstances, however, is a common experience. We’re all forced to evaluate risk in any type of work. Particularly if got a big idea or big project you want to bring to life.

You know the feeling. It’s a bit scary and your spidey senses are tingling, everything could go pear shaped.

It’s at this point you have a choice: lean in and move onwards, or back off.

A few thoughts

Well, from experience a good starting point is counting the cost. To borrow an idea from Dale Carnegie that’s no-doubt familiar, ask yourself, ‘what’s the worst that could happen?’

I know that’s very a common self-help phrase but for me it’s been a great way to normalise the situation and reduce my fears. Quite often you’ll realise the worst thing isn’t really that bad or you start thinking you’d easily deal with that problem.

Ready to lock-in?

My teenagers use this phrase: lock-in. It means it’s time to get focussed and block out distractions.

Of course, being young they’re able to sustain a high level of focus for a little less time that most adults. And that’s the trick, I’ve gotta say. If you want your big idea to take off, locking in looks more like years of dedication and focus on one or two big objectives.

If you’re ready, you’re ready. If not, well, you’re not.

Expect the highest highs and lowest lows

Forgive the captain obvious statement, but visionaries and big picture leaders like me can easily minimise the impact of hard times.

Doing something big, bold and risky is fun and often very hard.

For example, a colleague asked me a few months ago how the book was going. My response was that it’s exciting and terrifying.

It’s exciting because it’s so energising to pour your energy into a program of work that will encourage, inspire and help people.

And it’s terrifying because a big book, workshop and speaking project like mine is risky! That is, it’s costing me real money like any startup business.

There are also times when it’s been much harder than I ever imagined. So hard that for just a moment I seriously considered whether I should go back to ‘normal’ work. But the prospect of living with regret having never brought the dream to life kept me going.

Know thyself

Which leads to one of the most powerful bits of advice I can offer would-be risk takers. Yes, know yourself. But critically, remind yourself who you are when the going gets tough.

It’s easy to take a personality assessment, get a nice buzz, and then completely forget all about it.

In my case, I’ve leaned heavily on a few big insights from different assessments I’ve done over the years.

One example is the Kolbe Index which goes a long way to describing the way you work instinctively each day.

In short, you’re given a number from 1-9 (weak to strong) across four areas:

1. Fact finder: How you navigate the world with information and analysis from generalist to specialist

2. Follow thru: Your approach to organisational and system planning from adaptive to systematic

3. Quick start: How you deal with time and uncertainty, ranked from stable to improviser

3. Implementor: An ability to seek tangible solutions from abstract to concrete

Here’s my results!

1. Fact finder: 4

2. Follow thru: 4

3. Quick start: 8

3. Implementor: 4

What does it mean? Well, I’m a super-fast starter and risk taker. I’ll say ‘yes’ before I even know the end of the question, then turn it into a productive adventure – at least, that’s what the Kolbe people told me when I did the assessment years ago.

The big ah-ha for me was realising just how much this resonated. I really do like moving fast. I’m also instinctively – always picturing new ways we can grow, change or develop ideas. Do I want to spend a lot of time gathering data, ensuring everything is implemented and seen to completed? Not so much. That’s someone else’s job!

The downside, or catch, is that fast-starters always need support.

They need others who can work with them to innovate, ask tough clarifying questions and help fill in the blanks, such as finding more data to support or challenge the vision.

Happily, I’ve been able to find the right people to dive in and help me when needed over the years. And I’ve learned that when I get cranky about random admin tasks and too much detail, Kolbe taught me it’s a sign I need to find more people, or tech solutions, to help me get stuff done.

So again, back to the central question. What’s your appetite for risk?

Even if you’re not doing something crazy like writing a book, I hope there’s a few ideas in here that give you perspective. Maybe the stress or burnout you’re experiencing could be related to the fact you’re in an uncomfortably high-risk situation.

Or maybe it’s because there really is a book in you, after all.

Onwards!

Mark

Hey, you got to the end! Nice work.

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