The determination to succeed in business is a powerful drive that can propel you toward a profitable future, but it can also steer you in the wrong direction. Whether you operate your own business, actively invest your money for profit or spend your days chained to a cubicle, you will come across opportunities that make you want to go all in with the hopes of tremendous financial gain. While the urge to take advantage of the situation right away is strong, those are the moments when you need to stop and analyze the circumstances thoroughly.
Data Over Assumptions
Your gut may tell you that an opportunity is golden, but the data may not support that assumption. Even if you think an idea is genius, it doesn’t mean it’s going to take over the world and make you a millionaire. A lot of factors play a part in determining which products and services turn into profitable businesses, including the qualifications and personal characteristics of the people standing behind the business.
When you come across an idea that you think could turn into a successful business, take a hard look at the data. If there is no data, create a proof-of-concept project to create data. This is how you rule out ideas that just won’t work in the long run no matter how badly you want them to succeed.
Learn from a Billionaire
When you see your competitors jumping on an opportunity, you have to determine whether chasing them over the cliff is really a wise business move. This is exactly what Steve Wynn is currently doing as the owner of multiple successful properties in Nevada and a prominent player in the comeback of the Las Vegas Strip. His heavy investment in the casino industry has earned him billions of dollars, so you may assume that he’d naturally want to claim his fair share of the online gambling market.
Online casinos are now quite popular and many investors and entrepreneurs are setting up gaming websites, but Steve has maintained that online gambling isn’t a wise entrepreneurial move for his business. There’s a good chance that he thoroughly analyzed the online gaming market and determined that the data doesn’t back it up as a viable business opportunity. A successful billionaire knows not only how to earn money, but also how to protect it. Knowing when to go all in and when to hold off or turn away completely is required if you want to maintain the wealth you’ve earned through hard work.
When Do You Strike?
Pausing to look at the hard data doesn’t mean you can’t get into a business or investment opportunity quickly. Your job is to look at all sides of the situation and determine the risks involved. If you know that the risks are manageable and the potential profit is worth pursuing aggressively, then you may decide to put everything you have on the table and work hard to create a successful outcome for everyone involved. You may also decide that the risks are too high or that there is an obstacle that makes your chance of success too low to justify an investment of your time or financial resources.
Just as billionaires like Steve invested years of their time and millions of dollars in the revitalization of the Las Vegas strip, small business owners are taking risks with their money every year. You can jump up a tax bracket or two by taking those chances, but you have to take the right risks at the right time. That requires dedication to looking beyond the hype to determine whether an opportunity is right for you at this time in your career. Don’t go over the cliff simply because you see others taking the leap.
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