Full Episode
Welcome to the Level Up Podcast. I'm your host, Paul Alex. I went from being a cop to an eight-figure entrepreneur that helps average people like you and me make money every single day. I created this podcast to help you get motivated and to crush your goals. Let's win together. Remember, I have your six. Get ready to level up right now. What's up, everybody, and welcome back to Level Up Podcast.
I'm Paul Alex, and today we're going to be talking about something that every entrepreneur needs to master, calculating business risk. Let me tell you something, guys. Risk is part of the game of life and business. But if you're not willing to take risk, you're not ready to succeed. That's just point in blank. But that doesn't mean jumping in blindly.
Smart entrepreneurs know how to evaluate risk and make calculated moves. So let's break down a simple formula to help you assess risk like a pro. First things first, guys, start with a potential upside. Ask yourself this. If this works out, what's the reward? Is it a new stream of revenue, a breakthrough partnership, or scaling your business to the next level?
The key is understanding whether the risk aligns with your bigger goals. If the upside doesn't move the needle, it's probably not worth it to you. Make sure to check out my YouTube channel, OfficialPaulAlex.com for more motivational episodes. Second, evaluate the downside. This is where most people mess up. They don't think about what happens if it fails. Ask yourself this.
What's the worst case scenario? Can I recover from it? If the answer is no, that's not a smart risk. But if you can handle the fallout, that's your green light to move forward. Entrepreneurs don't avoid risk. They minimize the damage when it doesn't work out, guys. And lastly... factor in the probability of success. This is about being honest with yourself. What are your chances this works out?
Do you have the skills, the knowledge, or the resources to make it happen? And if not, what can you do to improve the odds? Risk isn't about rolling the dice. It's about stacking the deck in your favor, guys. So the bottom line here, the formula is simple. Upside, downside, and probability. If the upside outweighs the downside, the odds are in your favor. Take the shot.
But if it doesn't pass the test, it's better to pivot than to gamble, guys. Thanks for tuning in to Level Up Podcast. I'm Paul Alex reminding you that success isn't about avoiding risk. It's about managing them. You got to think smarter. You got to act bolder. And as always, guys, let's level up. Thanks for listening up to Level Up Podcast.
If you enjoyed today's episode, make sure to share with a family, friend, and everyone you know who's ready to level up. Leave a five-star review on Spotify, Apple Podcasts, and wherever you tune in. It really helps spreading the word. And don't forget to check out OfficialPaulAlex.com for more episodes and resources to kickstart your journey. Let's level up together.
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