Last week, I wrote about my very conservative friend from work, and his views on money, investing, and starting a business.  I finished that post with two key ideas:

1) Risk is inversely proportional to knowledge.

2) People use “risk” to hide their fear of uncertainty.

I elaborated on the first idea–how knowledge decreases the risks for investing money–a few days ago. 

Today, I want to focus on how people use “risk” to hide their uncertainty.

People Choose Inaction Over Action

How many people do you know who drag their bodies to work every day, week after week?  They would rather stay home, sleep in, spend time with their families, golf, or go on vacation.  Yet, instead of opting for whatever their dreams might be (including any pipe dreams they might have), they opt for the monotony and misery of their eight-hour-day purgatory. 

The obvious question is, Why would anyone do such a thing?

There are only two choices.  Get out, or stay.  The majority of people, however, do not act.  They hesitation and are unwilling to take the plunge.  They do not change their circumstances and eliminate the unhappiness they experience with their jobs.  Instead of acting to solve that problem, they choose inaction and remain where they are. 

People Choose to be Unhappy

Why would someone choose to remain in an unhappy situation?  It’s almost like renting a movie, arriving home, discovering that the DVD inside the case is not the movie you rented and, even worse, is a movie you hate . . . and watching it anyway.  No one in his or her right mind would watch the movie.  You would find something else to do.

Yet millions of workers across the country do just that every day.  They hate their jobs . . . but they go to work anyway.  Why??

Uncertainty Breeds Inaction

When I stated that there exist two choices for the 9 to 5 employee (i.e., get out or stay), the only alternative to staying in your job is leaving.  But this choice obviously presents a wealth of problems for an employee:

What do I do about money?  How will I pay my bills?  How will I pay my credit card bills?  How will I put gas in my car?  How will I feed my family?

If leaving is the choice, the ex-employee has to do something to make money.  Otherwise, he or she (and the family) will be out on the street.

Aside from finding another job (and the same problems that existed in the previous job), the ex-employee’s remaining choice–short of begging for money–is becoming an entrepreneur and starting a business.

Risk Disguises Uncertainty

The problem with that course of action is that, according to many wannabe entrepreneurs and frustrated employees, starting a business or pursuing some entrepreneurial goal is “risky.” 

They believe that because the outcome is perceived to be uncertain.  There is no guaranteed paycheck at the end of the week.  They believe such a choice is too volatile and does not guarantee a steady income.

Unhappiness Prevails Over Uncertainty

Rather than face that uncertainty, employees choose not to pursue their entrepreneurial dreams and, instead, return to the 9 to 5 grind and the illusory certainty it provides.  They return to the misery and unhappiness that dominates the majority of their days.

This is a legitimate problem and a fascinating phenomenon.  The perceived uncertainty of investing, entrepreneurship, and starting a business frightens people and dissuades them from action.  It breeds passive groups instead of aggressive individuals. 

The Solution?  Risk is a Myth

If you’re an employee and have routinely chosen the unhappiness of your job over the uncertainty of becoming an entrepreneur and pursuing your passion, the best advice I can offer is that starting a business is not risky. 

Focused research on a potential business or product and knowledge and understanding of a niche market all but eliminate any perceived risk.  They also dilute the uncertainty and paint a clearer picture of success.  When viewed through these more informed lens, the choice between starting a business and staying in one’s 9 to 5 purgatory becomes much easier:

Ditch the unhappiness, and embrace the freedom of an entrepreneur and business owner. 

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