The opinions expressed by Entrepreneur authors are their very own.
Conduct business safely? That’s why you are stuck. The brutal reality is that the biggest entrepreneurial victories come from daring and audacious bets – the kind of selections that make most individuals sweat and query their common sense. This is not about recklessness; it’s about having the courage to step outside the norm, seize opportunities that others miss, and embrace the uncertainty that comes with striving for greatness.
The difference between merely surviving and truly thriving is not doing what is expected, but taking calculated risks that redefine the rules and completely change the game.
1. Elon Musk: Go for it (even if it’s crazy)
Risk: Elon Musk became famous for pouring his entire PayPal fortune into his next ventures – SpaceX and Tesla – which nearly left him bankrupt.
In 2008, each corporations were on the snapping point. Tesla’s production delays and SpaceX’s failed launches nearly bankrupted Musk. Instead of cutting his losses, he doubled the amount, betting all the pieces on one more launch for SpaceX. The launch was a success, securing a $1.6 billion contract for NASA and saving each corporations.
Lesson: Most entrepreneurs hedge their bets to avoid failure. Musk’s story shows that sometimes the only approach to win big is to go all in. The difference between success and failure often comes right down to sheer determination and risking all the pieces for a vision you suspect in.
2. Sara Blakely: Bet on yourself (when no one else will)
Risk: Sara Blakely, the founding father of Spanx, had no experience in fashion or business. She took her entire life savings – $5,000 – and invested it in her crazy idea for footless tights.
Blakely was rejected by every hosiery manufacturer she approached. Instead of giving up, she hand-sewed her first prototypes and rushed to deliver her product to Neiman Marcus. The risk paid off. Spanx became a billion-dollar brand and Blakely became the youngest self-made billionaire.
Lesson: Nobody will consider in your idea such as you do. Waiting for another person to approve your vision is a sure approach to fail. Betting on yourself means pushing forward when the odds are against you.
3. Jeff Bezos: Keep investing (even if you are profitable)
Risk: At the starting of Amazon, Jeff Bezos took all the company’s profits and reinvested them in development.
At a time when competitors were getting cash, Bezos took huge risks by building infrastructure and expanding Amazon into latest markets, often at a loss. This relentless focus on reinvestment has catapulted Amazon from a bookstore to one of the world’s largest corporations, dominating cloud computing, logistics and retail.
Lesson: Short-term victories won’t build a legacy. If you play it secure, hoarding profits and holding back development, you’ll fall behind. Highly successful entrepreneurs take a long-term view and are willing to sacrifice short-term comfort for long-term dominance.
4. Richard Branson: Embrace a Risk Culture (Even If It Fails)
Risk: Richard Branson’s Virgin brand is synonymous with risk. He founded Virgin Records, Virgin Atlantic, and even Virgin (*5*), a space tourism company. Not all of his ventures were successful. Virgin Cola, Virgin Brides and Virgin Cars all failed spectacularly.
However, Branson’s “risk culture” makes him one of the most successful entrepreneurs in the world. He sees failure as a crucial step to innovation. By taking risks, he built a multi-billion dollar empire spanning various industries.
Lesson: Failure is not fatal – but a secure approach is. The only approach to innovate is to take risks, even if there is a risk of failure. If you do not fail every now and then, you are not taking enough risks.
5. Howard Schultz: Double down on expansion (even if everyone says stop)
Risk: Howard Schultz took Starbucks from a small Seattle coffee chain to a global powerhouse, with high hopes for expansion.
During the 2008 financial crisis, when most corporations were scaling back operations, Schultz doubled down on Starbucks’ global growth by investing in latest stores, technology and customer experience. His risk paid off. Starbucks emerged from the recession stronger, more profitable and more modern than ever before.
Lesson: When everyone else is retreating, the boldest move is to advance. History shows that some of the most successful entrepreneurs made a name for themselves by becoming uncertain when others hesitated. By taking calculated risks in difficult times, they managed to seize opportunities, innovate and build resilience.
If you play it secure, you play to lose. The biggest entrepreneurs in history didn’t achieve this goal by avoiding risk – they bet on their visions, redoubled their efforts in difficult times, and weren’t afraid of failure. The query is not whether you shall be exposed to risk in your corporation. The query is: will you be brave enough to take the risks that result in life-changing rewards? After all, the biggest breakthroughs often come from the biggest leaps of religion.