Risk management for startup founders is very different than risk management for investment portfolio … [+]
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Risk management in the land of startups is a very confusing concept. The main reason is that risk management is usually associated with managing a balanced, diversified portfolio of investment. While this principle is applicable for startup investors, it is hardly applicable for startup founders who are by definition all-in on their high-risk startup project.
So, here are the three principles that would allow you to manage risk correctly as a founder:
1. Allow Yourself To Be Lucky: Risk Pennies To Win Dollars
The first thing to internalize is that you are playing the game of startups partially blind – everybody is.
Markets are extremely complex, and startups (being innovative and unproven) add a layer of complexity on top of that. Don’t fall…