New Venture

We are putting the final pieces together on our downtown project: Venture Chocolate and Wine co. and Venture Business Center. The idea was to establish an incubation space in the middle of the marketplace. Accomplishing this required creating both the marketplace and the incubation space.  TS Eliot writes “between the conception and the creation lies the shadow” We are in the process of passing through that shadow. All the financial and operational abstractions are becoming realities. Inevitably, it will different than we have imagined, hopefully better. Our Chief Design Officer, my wife, has already had to adapt her vision to the process of implementation. This involved navigating post 2020 supply chain constraints, small town bureaucratic regulation, financial considerations, as well as communication and construction challenges. All these complications put the cohesive vision for the space at risk. Creative response and adaptability were as important in creating the space as the initial project design and vision.  This week’s business opening will likewise be fraught with unexpected complexity. Opening this, and any, business is risky.  We are aware that risk is often integral to success.

On Risk

It is an axiom in personal financial planning to begin with an assessment of one’s risk tolerance. The idea being, those willing to take the greater risk are positioned to reap greater potiential reward. While those who opt for more modest exposure to risk aim for a correspondingly conservative potential reward.  The financial plan is then constructed within the context of this risk reward matrix with consideration being given to time horizon.

In entrepeneurship we see this idea expressed as well. A person invests their work and money into a project risking potiental loss. This is in contrast to working for the certainty of a paycheck. The enterpreneur’s willingness to take a loss creates the potiential to earn a higher reward if the project is succcesful.

The reality of the relationship between risk and reward in personal financial planning and in business aggregates success around risk takers. If you ask 10 highly successful people if risk was integral to their journey 8 or 9 may say yes.  All of this indicates risk is the path to success. Yet it is not so simple, the risk is real. If you evaluate 10 people who took risks only 1 or 2 will have experienced success. What then do we do?

Key Idea

Financial skill is an ability to maximize the potential reward while minimizing risk. Navigating complications in real time is where we minimize these risks. Therefore, adaptable competance strategically positioned creates wealth.

Sum

Unpacking adaptable competance and strategic placement of that skill are relatively deep ideas to be explored. Suffice in this post to summize with the encouraging truth that adaptable competence is a skill you can develop. The risk of failure is much higher when something is going wrong. Something is going to go wrong, probably alot of somethings. The navigating of the unexpected and problematic is where we can minimize the risk and thus achieve reward. It is also where we can develop new skills. Prepare for the unexpected by expecting the project to be disrupted and  position yourself for problem solving, adaptability and learning.

Risk is mitigated by skillful navigation which is developed as you aim for personal growth over mercurial reward. Work is a growth process. Often the problems that arise are out of our control, but also often the problems reflect our own weakness of mind or character.  Being honest, many of the challenges I face in my projects and in life are connected to my weaknesses. My friend Chip shared with me the aphorism, “Good judgement comes from experience and experience comes from poor judgement” So even in our failures we may be growing.

In the case of the soon opening chocolate company, I was sitting one night beside a fire with a friend when I initially made the decision to take on the risk. It was two years ago and the dusk was settling in around us as we had a drink and talked about life. He was helping me weigh the risk and opportunity. I had limited information. The world of spring 2020 was full of uncertainty yet I could see an open door.  After expressing to my friend the details of my situation, he replied, “If you don’t challenge yourself in business, how will you grow?” then he added, “and I am not merely speaking financially” In that moment, I knew I would make the investment risking both time and money.

Come check out the Venture Business Center. Join us as in discovering the meaningful bottom line of our endeavors. Be encouraged as you navigate the risks in your journey. God gives wisdom generously to all who believe, without finding fault.