The Risk Advantage by Tom Panaggio is designed as a guide for those who are contemplating an entrepreneurial pursuit, are already engaged in building a business, or are currently working for someone else and want to inject their entrepreneurial ideas and attitude. “Those who understand where risk belongs in their lives,” says Panaggio, “will ultimately be successful.”

1  When failure occurs, it’s natural to say, “We made a bad decision.” But what you need to do is ask yourself this question:Was it a bad decision or simply a bad outcome? A decision is a choice you make. Without the benefit of clairvoyance, you base that choice on timely information. It would be unfortunate to measure the decision’s value based solely on outcomes. If we only accept the value of favorable outcomes, then we limit our ability to take risks, and forward progress stops.

The reality is that important decisions made by intelligent people having the best information and intentions could still result in an undesirable outcome. Leaders make decisions to determine the company’s direction. Promoting the proactive nature of decision making is the objective because in an environment where there is decision paralysis, forward motion ceases, and that is bad outcome.

2  Go for clarity, not certainty. The idea of clarity pertains more to the direction you want your business to be moving rather than the degree of detail and the language you use.

3  I have heard all the “If I had” excuses over the years. Unfortunately, this way of thinking is based on false reality, because the road to success is through action, not tools or accessories. While tools, technology, and accessories might be helpful, they do not guarantee success. Effort guarantees success—you have to keep your foot on the accelerator longer and more often than your competitor.

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