Understanding Uncertainty is Vital to an Entrepreneur

Entrepreneurship

Pop quiz: what relationship factor is the single most common trait in the successful entrepreneur?

My answer: understanding uncertainty. Living with uncertainty

Why?

First let me say that I’m not sure. Second, that I might change my mind tomorrow. (Irony intended.) Third, that I know there are seemingly endless lists of traits of the entrepreneur, and I’m guilty of producing several (including my own top 10 list, which is one of the most popular post on this blog).

Today I’m thinking that the single most important trait of the true entrepreneur is establishing a good, healthy long-term relationship with uncertainty. As an entrepreneur, you don’t know for sure, but you act. You program, you contract, you create, you hire, you borrow, you spend, and you act, all like the explorer setting forth into unknown territory.

Planning helps. Research helps. But you have to be able to live with the educated guess.

(Image: dny3d/Shutterstock)

8 thoughts on “Understanding Uncertainty is Vital to an Entrepreneur”

  1. Tim,
    Great post and I could not agree more. The reality is that we live and work in complex adaptive systems that we cannot control but we can influence. This is an entirely different paradigm and one that requires a unique skill set that will take active development.
    Again, really loved the thought.

    1. Tim Berry – Eugene, OR – Founder and chairman of Palo Alto Software, founder of bplans, co-founder of Borland International, Stanford MBA, author of books and software on business planning and startups, baby boomer, exhippy, married 54 years, father of five.
      Tim Berry says:

      Perry, thanks.

  2. I don’t feel that planning and research can be relegated to a merely helpful undertaking. I feel that my “educated guesses” come directly from the planning and research. The shadow of uncertainty is always there, but the planning and research, even though there may be no direct related memory of relevant information derived from the research, together with planning, which is an integral partner to research, makes the uncertainty an exciting challenge to be overcome. There is something very heady and fulfilling about facing the uncertainties of business situations and seeing your plan become a successful reality. The journey from uncertainty to success is exciting, and a challenging adventure that can be a very gratifying experience. Is this the good, healthy long term relationship you refer to? Without the research and planning business decisions become lucky guesses.

  3. Very true. If you’re not willing to deal with uncertainty almost on a daily basis, then you shouldn’t get in the game.

  4. Being piable … to deal with those uncertainties, you need to be pliable. If you’re rigid, you’ll break or snap. Good “pop quiz” – good thing to keep in mind.

  5. Great post!

    I also agree with the previous comments. Uncertainty becomes so much more bearable if I can have my trusty Excel-sheet with me. Robust (lots of room for change) and pliable (lots of conditional options) planning and ability to change parameters according to the day-today situation has helped me survive the frequent appearances of Lady Uncertainty.

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  7. Bryan Zak – Provides training and counseling focused on the specific business development needs for the Kenai Peninsula communities to include Homer, Kenai, Soldotna, and several rural communities. Identifies opportunities, develops focus, and provides tactical business solutions • Provides guidance and counselling to include business planning and modeling, loan proposal assistance, financing options and business growth strategies. • Oversight of administrative staff in the Kenai, AK SBDC office. • Advocate for the SBDC mission statewide through community participation, public speaking and networking opportunities. • Conducts “Profit Mastery” training classes on a basis, or number per year, or to a goal of number of people • Conduct one-on-one counseling for pre-qualified candidates for selected core services. • Initiates surveys to better understand the community needs and targeted services. • Attended national SBDC training annually • Advocates the benefits of the SBDC to Kenai Peninsula government entities to ensure regional funding is achieved to sustain the region. • Participates in strategic planning meetings to include the Malcom Baldrige application process • SBA Business of the Year Award selected in 2009 and 2010 from the Kenai Peninsula Region counselled clients • Provided counseling services to the Seward SBDC office until the opportunity allowed for a full time position. • Introduced tracking program, charts, (remember you introduced a new way to track things)
    Bryan Zak says:

    Understanding Uncertainty is Vital to an Entrepreneur and knowing how to learn and a focus on continuous learning is the fuel required to understand uncertainty.

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