One of the great, old sayings adopted by some branches of the military around the world is “who dares, wins.” This just means that those willing to take risks will be rewarded with victory. And while we know how important it is for both professional and personal growth to test your limits and move out of your comfort zone, we’d also urge those in business to make sure that the risks you take are calculated ones.

Don’t Bet Everything

Those who dare may win, but they may also just as easily lose. This is why, whether you’re going for a mortgage at the bank, or approach us at hardmoneyman.com for your first hard money loan, it’s important to make sure that when you take a risk, it’s not lethal. Things don’t always work out the way you’d like, and if you take a loss on a business gamble, you have to be prepared to deal with and overcome that loss.

However, if you committed everything to a particular gamble, this means that when you fail, you not only have no way to make up that loss, you may have permanently ruined your own chances to return to even your former levels of financial security.

Never put everything into a business deal. If you see an opportunity that—if it fails—could ruin you, don’t take it. Risk is good, but foolish risk earns the respect of no one. If you take a risk that endangers not just your business but the financial security of your own family, that risk goes from bold to irresponsible.

This is why it’s important to make reasonable plans about your residential flipping or other real estate projects. Making money is important, but risking your entire future isn’t productive. Make sure you have the resources, and look honestly and unflinchingly at the actual odds for success a project has for delivering on the numbers it is promising.