Risky Business

Fortunately for some, unfortunately for others, your ability to tolerate risk is going to be a big factor in your life, from your career moves to your investment strategy. There seems to be a steady amount of human beings at either end of the spectrum all the way through the middle, with neither "side" showing that it will eventually be winnowed out. But there are definitely plusses and minuses to each extreme.

If you don't take some risk with your investment income, you probably won't get much reward. Take too much risk, and you could wind up in serious financial trouble, and lose your ability to retire comfortably. If you take little to no risk in life, you probably have a harder time making new acquaintances and meeting potential romantic partners. But take too much, and, well, you could end up in any number of predicaments.

If you're an entrepreneur, you probably have a higher tolerance for risk than many, or quite frankly, you wouldn't have started a business in the first place. But that doesn't mean it's always comfortable. Though we're still in the process of understanding why some people avoid anything risky, and on the other end of the spectrum, some people don't seem to feel fully alive unless they're engaging in extreme sports, some of it seems genetic, and some risk tolerance seems to be influenced by early childhood experiences.

Risk tolerance isn't inherently good and risk aversion isn't inherently bad. But entrepreneurs, in order to be successful, will have to take risks more often than their corporate middle management counterparts, with the nice benefit package and the predictable income. Add on top of that a desire to stand out from your competition, to expand your product line or services, and perhaps to speak to large groups of people...well, even if you were comfortable with the whole starting a business part, there will come a point where the nerves will kick in.

Kris Lindahl, who decided to form his own real estate brokerage in 2018, experiences this on a regular basis, although from the outside, he often appears calm and collected in his usual "Be Generous" baseball cap and hoodie. His frequent videos on social media often show him relaxing on the couch, sitting in his car, or even doing a casual selfie walk 'n talk at his gym. In fact, these social media videos are one reason his team expanded to hundreds of agents in multiple states, and why his business surpassed $1 billion in sales just this past year.

"You've got to get out of your comfort zone," Kris Lindahl tells his team. "Videos get you noticed. They stand out. Shoot a video with a fun story of your recent closing, or even about what you're seeing in the market, and you'd be amazed at how many people watch it. It's uncomfortable to put yourself out there like that, but you've got to get more comfortable with being uncomfortable."

One after another, those more cautious types who try it have confirmed, over and over again in their weekly Zoom meetings, that it works, and every week, more try it. The reward is immense. Especially in low inventory conditions, those brokerages who get connected with more potential sellers are completely in control of the market. And as Kris Lindahl Real Estate reserves some of its properties for their clients' eyes only, it drives buyers his way as well.

Video is powerful, but no one likes to put themselves out there on social media. Public speaking and other behavior that helps you stand out from the crowd carries the perception of huge social risk. There's a reason people fear it, because the last thing anyone wants to do is lose face in front of their social circles. But the funny thing about this risk is it's largely a matter of perception. Unlike driving recklessly, where an accident is a real consequence, public speaking is one of those risks that we make bigger in our own heads.

"Everyone's afraid of it at first," Lindahl explains. "But no one has to watch your video, and mostly, the feedback I get is that people like it, and find the information I'm providing helpful. They especially like that they're casual, unscripted, and kind of no big deal."

For entrepreneurs and business leaders who want to improve their risk tolerance, posting videos on social media are a great way to practice getting uncomfortable, with relatively little actual risk. Lindahl encourages his team to practice making birthday greeting videos for friends, and was surprised at how many video greetings he got on his own birthday last March. And sure, for most, it was uncomfortable to make that first one. But according to Lindahl, that's all the more reason to do it: "Once you do that one, the next one doesn't seem like that big of a deal. And after that, maybe appearing in a commercial, or putting up a billboard for your business isn't that big of a deal. It's amazing what that first step can do."