Entrepreneurs love to view risk as binary. The more you put on the line, the greater the potential for reward. Go on, take that second mortgage so you can pour more cash into your business. Mine your life savings for a few more months of runway. The thrill, the adrenaline, the glory come from being at the precipice of either winning or losing it all.
That’s a terrible way to navigate your company. It’s misguided, toxic, and, unfortunately, all too common. It’s what happens when the notion of risk is distorted–compressed from a spectrum to a single, indivisible point.