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How To Be Lucky As An Entrepreneur

Levels of Lucks

#1 Blind luck

You just sit around and get struck by lightning; you didn’t do anything; it just happens to be you, and It’s not something you can count on or control.

#2 Fortune Favors the Bold

This is the same as above, but you can increase the odds of it happening by adding motion or by taking action.

Shaan Puri
“I’ve never heard of someone stumbling onto something good while sitting down.” This emphasizes the importance of simply taking a bunch of actions.

#3 Chance Favors the Prepared Mind

This is where you notice that something lucky has happened that other people may not have noticed. It took your years of preparation in looking at things to even understand this.

Any investor will tell you:
They look at a 100 deals before they invest in one. It's not because all 100 are going to be good; It's because when the 101st deal comes that has killer metrics, you're able to recognize that deal is unique, the price is fantastic, and the metrics are off the chart.

Because you have a benchmark of what normal looks like, you know this one is not one of those.

#4 Luck Finds You / Reputational Luck

Shaan Puri's(Guy in the thumbnail) goal is not to become well known; he’s trying to be known well.

Meaning, he just tries to put his work and his passion out there on blast so that people who are like-minded will find him, people who are building start-ups in that space will find him, and he can invest in them.

Level of Risks

Most people believe that the big risk is doing something crazy like skydiving or investing in crypto. These are obvious risks, and because of this, people don’t always take them or take precautions.

The things that are obviously risky don’t actually trip you up; the problem is the not-so-obvious risks.

Example:
Before 2008, everybody generally thought that mortgages and housing were safe to invest in, but in reality they were much riskier than people realized, which caused the global financial crisis.

Risks are not just things you think about.

#1 Mediocrity

Are you truly risking failure when you pursue a job or a business endeavor, or is the real risk something sneakier and more insidious? Many of us enter these pursuits fearing failure, believing it to be a significant risk. However, let's take a closer look.

The truth is, failure, in most cases, isn't as painful as we imagine. Yes, it might mean wasting some time, but in return, you gain a story to tell, valuable experience, and connections you've made along the way. Essentially, the risk isn't as high as it appears.

That’s one version of failing, but the other version that Shaan Puri thinks is sneaky and plagues more people is Mediocrity, which is the risk of having something that’s just okay.

It's not terrible enough to be an obvious failure, yet it's far from great. The danger here lies in wasting your most precious asset: your time.

If you’re someone who aspire greatness, then the most significant risk you face is mediocrity.

Failing is fine
it's a stepping stone to learning and growth. You can try, fail, and try again. But choosing something that's merely alright—neither great nor terrible—can deprive you of your most valuable resource: time.

#2 Safety

In the pursuit of our dreams, we often focus on avoiding risk, staying in our comfort zones, and playing it safe. It's natural to want security and stability, but there's a risk in not taking enough risk.

Ask yourself:
Do you have a dream, an ambition, or a goal that you're striving for? Are your current actions and choices, rooted in safety and familiarity, leading you toward that dream?

Consider your path—is it aligned with your aspirations? If not, then the safety you enjoy now might actually be putting your dream at risk.

People usually think, "Am I at risk now?" But what you want to think about is: "Am I jeopardizing my future by playing it safe now??"

Don’t play it too safe; add a little risk for some flavor.

#3 Eyes Wide Shut Risk

What happens when you assume something is safe, but it's not? When you place your trust in the wrong person and bet everything you have?

Consider this:
You might assume that the housing market is a safe investment, but history has shown that it's not immune to crashes and volatility.

Likewise, you might believe that certain institutions or systems are "too big to fail," but in reality, no entity is invulnerable.

Take a moment to reflect
What are you assuming is safe in your life? What areas could benefit from a closer examination of the risks involved?

Remember, don't blindly trust assumptions of safety; scrutinize them, for it's often in those assumptions that hidden risks lie.

#4 Market Risk vs Executional Risk vs Technical Risk

Just like Eskimos having 50 words for snow, there are multiple types of risk in business.

Market risk

• Do you have an audience for you product?

• Does anybody want your thing?

• Is this going to be the next twitter, the next Snapchat, etc.

It doesn’t matter even if you have the best team and build the best product if there is no market for it or if people don’t actually want it.

Shaan Puri has friends like Cody Sanchez and people who buy cash-flowing businesses, and it’s fantastic; they’re not taking market risk; the market has already proven that they want that business and they want that product.

So they take Executional Risk;
They pay a price, maybe 3, 4, or 5 times earnings, and they’re taking executional risk to see if they can improve the business. Can I improve through executional efficiencies or by reducing cost.

And there are people who take Technical Risks
For example, a pizza-making robot. Let’s assume you own Domino’s Pizza. A startup comes to you and says that they have a pizza-making robot.

“The robot will replace the incompetent workers who are just sitting, checking phones, and calling in sick every fourth day. The robot will make the pizza and put it in the box for you.”

They offer you a bot that will do all those things but better without asking for a raise, without complaining, and without being sick. It can work 24/7.

If you could deliver such a product like this, there would be essentially Zero Market risk because Domino’s would want to replace more expensive labor that is harder to manage with something that is cheaper and easier to manage.

The only question is:
Can you make a robot that actually delivers on your promises reliably? Can you actually deliver the product as promised? That's a technical risk.

The video I summarized is by Shaan Puri. You can check the full video on their YouTube channel.

For this particular video, Click here or the thumbnail.