“Risk Takers of the Highest Order”

Risk Takers of the Highest Order.  Back when I was in an undergraduate finance class, Dr. Wade, Professor of Finance at the University of West Florida, used this phrase to describe people who choose to take on the challenge of building businesses and following their passions instead of taking the more traditional career path of getting an education, trying to land a good job and working their way up.

I think of this phrase often when I work with my clients and colleagues to build and expand their businesses, and as I watch them deal with the incredible range of emotions as well as the highs and lows that come with the dynamics of leading a second stage company. 

There are very few safety nets for second stage business leaders, yet most of these mavericks wouldn’t have it any other way.  Interestingly, these leaders are usually not well known and most do not seek a lot of attention. They wake up early and work late every day simply because they see building their business as the best way to support their families and make a difference in the world. 

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Despite the financial commitment and the time away from family and outside interests (especially in the first few years), their vision and commitment to build something new and different is compelling and ultimately, incredibly fulfilling.  Unfortunately, the pressure of living this way can be overwhelming, especially when things go wrong and there are few people who actually understand how daunting the journey can be.  Your spouse and friends may be sympathetic because they care about you, and they may offer support and advice, but they rarely understand what you are experiencing. 

Many people believe that start-ups have the highest failure rates, but second stage business actually have the highest risk of failure.  Trying to juggle all of the competing demands of a growing business –   especially common challenges such as cash flow pressures, trying to increase revenues and manage a growing number of people all at once – can overtax the most committed leader. 

Fortunately, once a business gets through these initial second stage growing pains, the rate of failure falls dramatically, and these businesses become easier to run and manage with a much clearer path to success.  The trick is to recognize the growing pains early and take the right path to get to the other side as efficiently as possible. 

So I want to thank all you "risk takers of the highest order" for having the courage and perseverance to dream and build a better way every day.

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An Interesting Fact about Second Stage Companies
While these businesses account for less than 12% of all businesses, they generate more than 34% of all jobs in the United States (source; Edward Lowe Foundation, 2014).