In my series of interviews with entrepreneurs, I like to ask them to recall a great risk that they’ve faced in their journey...and reveal, too, what they have found to be greatly rewarding.

While risk and reward may seem like simple motivating factors, each is complex. Let’s break down each element, to better appreciate how they affect early-stage founders.

RISK

Wise entrepreneurs realize the greatest risk is not taking any risk. Still, it’s easier to dream of being a successful risk-taker than to actually take a risk so consequential it causes you to lose sleep. So why, given the natural fear of failing, is risk more of a turn-on than a turnoff for pioneering founders? Three reasons come to mind: Energizing, Testing, Conviction (E.T.C.):

Energizing
Risk is alluring to many entrepreneurs because gambling is exciting, and the excitement is energizing. When you dare to take a big risk you might have trouble sleeping, but when you wake up you feel the rush of reality. You’ve got so much on the line your survival instincts kick into overdrive. That doesn’t always feel exhilarating; doubts creep in and fear can be paralyzing. But, like the first ride on a wild rollercoaster, you feel fully alive.

Testing
Another reason why risk is appealing is because it is a test of your abilities, will power, and your new idea about a product, service, or project. It’s a challenge. And if you’re the type who doesn’t want later regrets of not having undertaken what you were convinced at the time was the right, ambitious thing to do...you can’t help but accept the challenge.

Conviction
Successful entrepreneurs recognize that risks can be minimized by astute research, analysis, planning, hiring, training, testing, budgeting, etc. So, knowing they can reduce risk by applying know-how to the unknown, they are not just confident in their risk-taking; they speak and act with conviction. They know they have the expertise, methodology, and attitude to maximize their chance of success.

When advising founders, I point out that uncertainty is the only constant their venture will face in the early days, but the good news is that their approach to risks can make all the difference. With the right tools and perspective, they can change an unexpected, daunting challenge into an inspired opportunity.

REWARD

Beyond the hope of earning a financial bonanza – which some consider “the American Dream” -- founders find their work rewarding in many ways. Here are four key rewards: Purpose, Power, Prestige, Principles.

Purpose
A sense of purpose is probably the most rewarding byproduct of creating something out of nothing. You start with an idea, you develop it, you put money behind it, you collaborate with others to make it real. You become mission-driven. But more than that, you become a pioneer who dares to change the world. That’s fulfilling in a way that can’t be measured by money or any other metric.

Power
By power I mean, empowering. If you think about it, taking the initiative in conceiving and creating a new thing – whether a product, service, project, or strategy – is inherently empowering; you have given that power to yourself by taking the leap.

Prestige
Are you surprised to see the word, prestige, in this list of rewards? Just to be honest, it’s one of the appealing things about entrepreneurship, as is true of other distinguished professions. There’s prestige in succeeding against the odds and creating new jobs and opportunities for others. That’s earned prestige, not reflected glory. And beyond any recognition or gratitude for success, founders rightly feel proud to be part of a community of individualists – plucky, inventive leaders.

Principles
To live according to moral principles is its own reward, and true success as an entrepreneur requires integrity, reason, and compassion to truly earn and enjoy “the good life.” But I also mention “principles” in the more business-like sense of learning what works, grows, and endures through trial-and-error. “Best practices” can be adopted and adapted by observation of what others do, but the thrill of discovering your own principles of research, analysis, product development, etc. is part of the entrepreneurial fun. We learn by trying, failing, and trying again. It's that never-ending process that leads us to appreciate how fortunate we are to be lifelong learners in work that constantly challenges us to be innovative.

Whichever one of these rewards drive you – or perhaps, along with financial aspirations, it’s a combination – keep reward and risk in the right perspective. They can’t exist without each other. Too much of one or a shortage of the other can put you on tilt. It’s the balance that matters. So, however you measure your reward, keep in mind what you risked for it. That’s part of what makes the entrepreneurial journey so meaningful. We’re not sure where we’ll end up, but we know we don’t want to give up.

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