[Part 5] Risk avoidance? Risk management? How not to be afraid of the risks of side business/startup.

Hello. This is Kamiyama.

Speaking of which, when I returned to Japan, the first thing I ate was Sukiya's pork bowl.
After all, I tend to crave things I've been familiar with since long ago.

I don't eat expensive meat, wine, or sushi at all.
I always keep my food expenses to a minimum, only indulging a little occasionally.
That's why I can always find Sukiya's pork bowl delicious.
I used to eat them, but I stopped.
Rather, I regret that I was foolish.
I think it's enough to just gain some knowledge about food and alcohol.

Even if you have money, if you spend it on 'consumption,' you'll remain poor your whole life.

Stupid people probably spend a lot of money on nightlife venues.
That's completely anachronistic, foolish, and uncool consumption.
It's precisely those kinds of people who fall hard and fast.

Once you get money, you should basically only spend it on 'things that increase in value'.
Other than things that increase in value, keep expenses to a minimum and save them for occasional luxuries.
Otherwise, you'll be plagued by financial struggles forever.

Our investors also always praise popular Vietnamese restaurants and izakayas as delicious.
They are investors from Hong Kong and America, and they should have enormous assets.
You need to learn how truly wealthy people spend their money.
Moreover, I think it's a happy way of life to be able to find delicious things truly delicious, more than anything else.

Regarding how to use money, I'll talk about it when the time comes.

Well, that's enough for today's preamble.
Today, I'll talk about risk avoidance and risk management when creating work through side jobs or starting a business.

The importance of risk avoidance and risk management is determined when creating work through side jobs or starting a business.

This is something I've always thought.

Of course, whatever you do, taking action involves risks.
However, I hardly notice any risks.
I feel like the risks are almost zero.

Why do you think that is?

Normally, you'd worry about what to do if you fail, right?
You'd be scared about what to do if you end up with a large debt, right?
You'd feel fear, thinking there are these risks and those risks.
And then you'd think about how to manage or avoid those risks.

Certainly, we also consider risk management and risk avoidance.
But that doesn't lead to any anxiety.

So, why don't I consider risks as risks?

Because I'm confident I can win.
Because I'm confident I can win 80% of the time, even if I don't say 'absolutely'.
And because I consider the remaining 20% to be troubles that can be overcome.
Basically, I only take on a challenge when I believe there's no way I can lose.
If I understand that I can win, where should I feel the risk?

If I'm confident I can win, the weight of risk avoidance and risk management is also different.

I might lose, it might be fifty-fifty.
In such a mental state, risks can feel like fear.

However, if taking some risk with the premise of winning brings even greater positives.
Risk management and avoidance also become overwhelmingly easier.
Frankly, it feels as if there's no such thing as risk.

If you know everything, risks aren't scary. Create a situation where you can convince yourself you'll win 80% of the time.

So, why can you convince yourself that you'll win 80% of the time?
Certainly, you cannot completely eliminate risk.
Risk management and risk avoidance are, of course, clauses that should be considered.
Even so, why aren't you scared?

It's a simple matter.
Because before venturing into a side business or entrepreneurship, I thoroughly research what customers are looking for.

I researched a lot about the development of entrepreneurial talent.
I also met many people who actually wanted to start businesses, listened to their stories, and mentored them.
Then, I understand exactly where they are hesitating, what they are confused about, and what I should do.

There are many fundamentals for side businesses and entrepreneurship, but the most important thing is to know your customers.
If you thoroughly know your customers, understand what they want, and empathize with them, you'll know what to offer.
Then, by trying things out, you gradually come to understand what kind of problems exist there.

Of course, you can also see what kind of risks there are.
You will also know how to manage and avoid risks.
When you do something, 'fear' comes from 'not knowing'.
Risks are scary precisely because you 'don't know' the other party.
If you know the other party inside out, there's nothing to be afraid of, right?

For example, it's the same in human relationships.

When you meet a new person, you don't know what kind of person they are.
That's a bit scary, isn't it?
They might suddenly stab or hit you.
But if you know them, there's no need to feel such fear.

Feeling something is a risk.
Feeling that risk avoidance and risk management are burdensome.
That is a phenomenon caused by ignorance.
If you feel a risk, it means you don't know your customers yet.
In that case, whether it's a side business or a startup, it won't succeed.

When you start a side business or a startup, investigate everything thoroughly.
With this, you can face both risk avoidance and risk management without fear.

What to do when facing risks? Study all the techniques for risk avoidance.

Even so, you may actually face risks.
That's when risk avoidance and countermeasures come into play.
However, even if you actually face risks, there's nothing to be afraid of.
That's because you also know all about the risks.

If such a risk comes, let's take these measures to avoid it.
You just need to consider all possible risks and prepare countermeasures and simulations.
No matter what, risks will eventually come.
But if you know all about the risks, there's nothing to be afraid of.

This also relates to the previous point.
If you study thoroughly and know everything, there will be nothing to fear.
As I've said many times, thinking of risk as a risk is entirely due to a lack of study.
Everyone is afraid of what they don't know.

However, many people dislike the words 'study' and 'learn'.
They get lazy beforehand, don't bother to investigate, and just rush in with momentum.
That's why they can't see any risks and feel fear.

It's like being blindfolded with an eye mask and told to run at full speed, isn't it?
Since you don't know left from right, you don't know when you might run into the road.
With risks everywhere, front and back, you probably can't even walk properly.

First, you must take off the eye mask.
You need to be able to see your surroundings properly and avoid risks.
Once you can see your surroundings, you can think about things like 'that road shouldn't be taken' or 'this is a shortcut'.
This leads to walking while avoiding risks.

Being able to see your surroundings and knowing which paths you shouldn't walk on.
It is only by researching and learning that much that you can understand that you can win 80% of the time.

To overcome risks, learn thoroughly.

You must not be lazy about learning or researching.
You must not feel reluctant to meet someone and research information.
Even if you feel reluctant, you must research thoroughly enough to clearly see the risks.

However, there are also risks that you won't know until you try.
You might try something and realize, 'Oh, there was this kind of risk.'
However, you must study thoroughly enough to be able to avoid them anyway.

Even for unknown risks, be able to immediately anticipate how to avoid them with countermeasures.
Know the industry thoroughly enough to immediately come up with ways to avoid risks.
It is on the basis of such accumulation that you can gain the confidence that both side jobs and entrepreneurship are 'doable'.

Certainly, taking on challenges is a good thing.
Being unable to act just by thinking is the worst.
However, those who truly succeed are those who can think and act.
They are people who research, learn, thoroughly study their opponents, and can challenge with a high winning percentage.

That's why, every time I initiate something, I have never felt any risk as a risk.
This is because each time, I research and study thoroughly enough to have the confidence to avoid them.

By the way, I spent three years practicing for what I'm about to initiate next.
The period of thorough research is considered the 'sowing period,' and harvesting is done when it's determined that success is possible.
Whether it's a side business or a startup, people who are able to monetize effectively always know their audience inside out.

If you can't spend that much time, then compete with what you already know.
If you know what kind of person your customer is, you can stand in the ring from the start.
You can drastically cut down research time and start from setting things up.

If you know your audience inside out, you should already have an 80% chance of winning.
You should already have an area where you're not afraid of risks.

Thinking that risk avoidance, risk management, and risk in general are scary is because you 'don't know'.
If you know everything, risk is virtually zero, and you can win 80% of the time.
Please firmly grasp this way of thinking.