Experts: If You Want To Succeed, You Need To Fail More

Experts: If You Want To Succeed, You Need To Fail More
News
Like Us On Facebook
Like Us On Facebook

We have all heard people say that in order to succeed one must first experience failure. But when it comes to investing, the saying takes on a whole new meaning.

Think of it this way, while you can surely invest your money in market funds or CDs for a safe and minimal return, you can follow in the footsteps of venture capitalists instead, having 8 out of 10 of your investments fail, so long as the remaining two bring in a big profit.

While hedging your bets among several different investments instead of putting all your eggs into one, safe basket, you are basically allowing yourself to place several small bets simultaneously and giving yourself time to see which one will pay off the most. The trick then becomes minimalizing your losses as much as possible and riding out the wave.

This is the life of a successful entrepreneur; while most people see these elite few as risk-taking semi-lunatics, the truth is that the most successful ones always have a backup plan, a safety harness.

They don’t enjoy the risk, but they understand that that is just part of the package- and then they try to minimize it as much as humanly possible. Most seasoned entrepreneurs will tell you the same thing: you need to figure out how much you are willing to lose before you start your next venture.

Successful entrepreneurs follow a few basic rules. For starters, never bet more than you expect returned. And, maybe even more importantly, never bet more than you are willing to lose.

The mental repercussions of losing more than you can afford will harm you much more than the actual dent in your wallet. In other words, figure out what your Acceptable Losses are.

While this strategy will give you a peace-of-mind knowing that even if you lose, you won’t be out of the game entirely, it also allows for you to try again if you do end up failing.

With no risk, there is no return. Failure itself is always part of the journey- as long as you spread your bets as much as you can while still leaving the possibility of acceptable return, you will succeed sooner or later.

Paul Hudson | Elite. 

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Paul Hudson

A young writer, philosopher, and entrepreneur, Paul Hudson (@MrPaulHudson) has been writing for Elite Daily nearly since the start. Currently located in Manhattan, Paul Hudson primarily devotes his time between writing for Elite Daily and a mining startup in Turkey. He loves sharing his life experiences with his readers and makes sure to practice what he preaches.

More In News

World Sean Levinson

White Woman Sues Sperm Bank After Having A Black Baby

A Chicago-area sperm bank is being sued by a white Ohio woman after it mistakenly sent her vials of sperm from an African American man. Jennifer Cramblett, who ordered sperm from a white man for her and her partner, only learned that her daughter, Payton, would be half-black after becoming pregnant in April of 2012. […]

World Emily Arata

Girl Miraculously Found In Mexico After Missing For 12 Years

Sabrina Allen went missing 12 years ago and has finally been returned to the custody of her father, Greg. Allen, who disappeared from her Austin, Texas, home at just 4 years old, was kidnapped by her mother, Dara Llorens. As per the terms of Llorens’ custody agreement, she took the little girl for a weekend visit. […]

World Sean Levinson

Ebola Patient In The US May Have Exposed Dozens To The Disease

The man identified as the first person to be diagnosed with Ebola in the US came into contact with over a dozen people, some of whom were children, before being diagnosed and quarantined. According to Dallas news station WFAA, five children ranging from elementary to high school students may have been exposed to the virus and […]

Also On Elite

World

Suspect: Indiegogo User Never Delivers His Product But Is Spotted In A New Ferrari

While crowdfunding sites like IndieGoGo and Kickstarter can be great ways for entrepreneurs to fund their businesses, there’s a sort of inherent honor system that has to be respected. Sort of like Craigslist, but without the killers (hopefully). For some, these sites can be an enormous help, even in weird situations. Remember the potato salad […]

Entertainment

Leo DiCaprio Continues Amazing Streak By Becoming The UN Messenger Of Peace

Leonardo DiCaprio is a true renaissance man. He stars in amazing movies. He’s a great cheerleader. He stands up for ecological causes. Now, he’s been named the official Messenger of Peace for the UN. The UN’s Secretary General, Ban Ki-moon, gave DiCaprio the title. Ban said, His global stardom is the perfect match for this global […]

Women

An Obituary To Uggs, Uggly Status Footwear Of This Generation’s Women

Let’s take a trip down memory lane, back to late 2008. “Gossip Girl” is having a total moment, Lady Gaga’s “Love Game” is playing loudly in the background and it’s the height of Ugg season. Everywhere you turn, girls are donning the unmistakable sheepskin footwear, embracing the off-duty-cool look of the time and not thinking […]

Strategy

The Truth No One Tells You About Your Dream Career: Passion Involves Sacrifice

We’ve been told time and time again to “follow our passions” by various business people and celebrities, from Donald Trump to Steve Jobs. Jobs once said, It [what you choose to do] has got to be something that you’re passionate about because otherwise you won’t have the perseverance to see it through. To counter this […]