Are Business Owners Crazy?

Quick Insight

Business is always a gamble. The key to gambling is walking away after a small loss before it spirals into a huge loss. You must know your limit. When do you need to walk away from the table? 

“Are we crazy?” a client asked me after we reviewed their financial projections.

“You have to be crazy to start a business,” I replied.

“But, are we too crazy?” he pressed.

Business is always a gamble. The key to gambling is walking away after a small loss before it spirals into a huge loss. You must know your limit. When do you need to walk away from the table? 

Later that same day, I talked with a good friend. She was coming to a decision point in her career. She called it her tipping point. A few key events would decide whether she stayed on her current path or pursued another path.

Passion for a business idea led us to the crazy idea of starting or growing our business. Taking a risk isn’t crazy. Life is full of risks. However, it’s madness to not define the most you can afford to lose. Never bet more than that in your business.

I wish you enough craziness to take risks balanced by enough sanity to know your limit. I wish you well.

- Rob Stephens

Further Insight

CFO Perspective Resources

  • Video: Break-Even Analysis - I apply break-even analysis to the decision of whether to open a new location to show how it can help you make better decisions.
  • Video: How To Avoid Business Decision-Making Mistakes - I explain some common business decision-making mistakes and how to overcome them. Learn more about dozens of decision mistakes and how to avoid them in my behavioral finance program.
  • Course: Entrepreneurial Finance - Small Business Financial Management Basics - Get a financial overview of the entrepreneurial journey from startup to operational decisions to exit planning. You’ll hear from a business banker guest speaker who explains what lenders look at when deciding whether to make a loan to a small business.
  • Course: Behavioral Finance - Overcome your destructive financial impulses by understanding common thinking mistakes. With my Behavioral Finance course, you can avoid these costly financial decision-making mistakes. The course will help you to learn science-backed ideas to make better financial decisions.

Get all the CFO Perspective resources with a FAST (Finance and Strategy Toolkit) membership.

Get the tools, guidance, and support for superior business performance

Get all the CFO Perspective courses plus more in one package. FAST (Finance and Strategy Toolkit) is the membership program that gives you the resources for better strategic financial management. Get direct access to me as well tools for improved decisions that lead to superior business performance.

The right tools save you time, reduce your stress, and improve your effectiveness.

Learn More
>
Success message!
Warning message!
Error message!