Do You Have to Hit Rock Bottom to Rise to Business Greatness?
When you think about business success in America you would probably assume that taking risks is instinctive for most entrepreneurs.
However, I realized merely ‘good’ or average companies don’t take risk.
Therefore, I wondered if taking risks and hitting rock bottom are required to have breakthrough success?
Is Business Success Counterintuitive?
If you asked the proverbial man on the street if they believe a successful businessperson would ever end up hitting rock bottom or going bankrupt, the most common answer would probably be “no”. This common perspective on success and failure explains why the average founder goes out of their way to avoid risk at all cost. Interestingly enough, Chris Voss explains in his book, “Never Split the Difference” that people are naturally more concerned with the fear of loss rather gaining a benefit.
In other words, the moderate success that a good company experiences becomes a barrier or a form of golden handcuffs that keeps them fat dump and happy, so they never reach for real success that could take them to the top!
However, is taking risks and failing to the point of hitting rock bottom actually a critical step necessary to shatter the ceiling of average success! This implies that an entrepreneur must overcome their fear of taking risks by actually experiencing failure before they have the belief and vision to create transformative wealth.
Do Breakout Entrepreneurs Hit Rock Bottom?
If we look at some of the most successful entrepreneurs in our time we should find examples of startup entrepreneurs taking risks, then failing by hitting rock bottom and then making a meteoric rise to mind-blowing Fortune and Wealth!
In fact, this is what we see when we look at the lives of rich and famous individuals like Walt Disney, Paul Mitchel, Donald Trump and even Steve Jobs. All of these transformative business leaders played a part in changing our world while at the same time enriching themselves and their companies. Yet every one of these business magnets went bankrupt except for Steve Job who simply hit rock bottom by getting fired from the very company he founded. Both Walt Disney and Paul Mitchell experienced the agony of going bankrupt and the desperation of being homelessness before striking it rich and becoming ultra-wealthy. After many setbacks Walt Disney finally created the unforgettable character Mickey Mouse and founded a media empire that made him fabulously wealthy.
Paul Mitchell was homeless and eating out of a garbage can when the formula for the Paul Mitchel line of beauty products ‘popped’ into his head. Not only does he have a worldwide brand; but he his owns a private island with all the latest state-of-the-art technology and he made several guest appearances on Shark Tank.
Donald Trump went bankrupt and took a financial hair, but never actually experienced homelessness. However, the financial setback caused him to reevaluate his focus on real-estate and shift into the extremely lucrative business of licensing of his brand, which helped make a billionaire again and ultimately the President.
It appears that an entrepreneur is more likely to become an ultra-rich tycoon if they first suffer a financial loss that leads to bankruptcy, homelessness, or a simply a major setback.
This is true because most startup entrepreneurs that haven’t ever hit rock bottom are not prone to taking the necessary risk to rise to the top of the business summit. We examined several business magnets like Walt Disney, Paul Mitchell, Donald Trump and even Steve Jobs that all endured devastating financial downturns and all hit rock bottom before rising like a Phoenix to create Fantastic Wealth. So, if you not as rich as these guys then you should ask yourself if you’re willing to risk it all to make it to the Top!