Re:A Less Risky Path to Entrepreneurship in Software Develop...
by kamaal on Monday October 07, 2013 @01:09AM
(#6506595)
>>Risk is a function of both the likelihood and consequences of failure.
Only in a mathematical argument. Failures are difficult to deal with personally, especially if you have to deal with them repeatedly without any sign of success around. The typical result is frustration gradually turning into a form of burnout and depression.
Re:A Less Risky Path to Entrepreneurship in Software Develop...
by icoder on Monday October 07, 2013 @02:55AM
(#6506823)
You describe just another consequence of failure and your example therefore still fit the original statement about risk and consequence of failure.
While the consequences you describe can be seen as quite severe, the risk of them is, in my opinion and experience, a lot lower than the risk of failure alone. The chance of failing AND consequently falling into burnout or, less likely, depression, seems rather small to me.
Risk is a function of both the likelihood and consequences of failure. If you can try and fail a hundred times without quitting your job and only take that plunge when it is derisked (by increased information derived from operation) then it is inherently low risk. Sure throwing 100% into a startup from the beginning makes that individual effort more likely to succeed while being much more risky, but nights/weekend projects can evolve to sustainable businesses without increasing your risk profile. This is because the consequences of failure are near zero, and even a failed effort may be "profitable" in the net sense of connections and marketable skills gained.