Entrepreneurs create value by absorbing risk that customers, employees, and suppliers would otherwise bear. When you take on revenue volatility, income instability, and demand uncertainty, you earn better terms and deliver superior solutions. The key is matching the risk you assume to your actual skill set.
To be an entrepreneur is to take on risk, is to take risk off of your customers and to be taking it on to yourself. And you're going to convert their risk into value, right? Who's solving for their problems better. Is to be taking risk off of your employees and your suppliers, where instead of them having to worry about how they're going to go find their next nickel, you are providing it on some regular basis. And in return for shifting that risk onto you, they are offering you better rates, right? The salary rate as opposed to a freelance rate for that of being a most favored regular customer for your suppliers. Look at the world in this way. What risk are you taking on? And then where is it that they're losing a lot of risk? If you're taking on a small amount of risk relative to your skill sets, that's going to be how you create an outcome, right? That is going to be that the total amount of risk has gone down because of what you're willing to bear. But make no mistake, to be an entrepreneur is to embrace risk yourself.
