Entrepreneurs are risk-takers.

Wrong.

Do you believe that people who manage to start a business and STAY in business (this is the critical part) have no idea or a proper read on what their actions would be? 

If they've been running a business for, say, three to five years, they're using some form of the following guideline for decision-making:

1. What are the factors that are going to impact the outcome of this decision?

2. Which of these factors are within my control? Which are outside of my control?

3. What is the worst outcome that could result from this decision?

4. Can I live with the worst outcome?

I use the above four steps to assess what I should do in a business situation. Time doesn't wait for anybody; you don't have much time to gather all the information you want or need to make a perfectly informed decision. You use what you have and make a call—that is the "risk-taking" part. But, entrepreneurs don't go into something blindly without assessing or evaluating the risks.

Rather than labelling entrepreneurs as risk-takers and misleading aspiring entrepreneurs to believe they need to display abnormal levels of bravery and courage, we should refer to entrepreneurs as risk mitigators. We don't need would-be entrepreneurs running into a burning house to see who could miraculously come out alive, yet this is how we portray entrepreneurship in the media.

I know many entrepreneurs who take their time to think through their actions' first, second, and third-order consequences. They don't make hasty decisions. It’s like the rock climber in this story’s cover photo. They think several steps ahead to assess which path would get them to the top safely. They consider how their actions today could impact their business and all of its vested parties years into the future; these entrepreneurs don't have a crystal ball, but they do their best with the resources they have to safeguard their businesses for the long run. Although the media make it seem as if storied entrepreneurs somehow 'made it' through one courageous leap into the unknown, the outcome of where a company ends up consists of the leader's daily decisions. Suppose you only look at what the entrepreneur had at the beginning (where they start at 0) and skip immediately to when they're at T+1. In that case, you are missing all the valuable insights on the steps they took in between to get there, and I know from experience and many conversations with other business owners that those were the crucial steps they took to get to where they are today.

If you are contemplating starting your own business, know that you can take a minute and be thoughtful about how you proceed. It's better for the longevity of your business and for everyone who is a stakeholder in the company, whether that be your staff, investors, or your family and children.