The Level Up Podcast w/ Paul Alex - The Simple Formula for Calculating Business Risks

Episode Date: January 15, 2025

In this episode of The Level Up Podcast, Paul Alex breaks down a straightforward formula for assessing and managing business risks. If you’re an entrepreneur, understanding how to calculate risk can make the difference between a successful leap forward and a costly mistake.What You’ll Learn:Evaluate the Upside: How to determine if the potential reward aligns with your business goals.Assess the Downside: Learn to weigh the worst-case scenario and ensure it’s manageable.Gauge Probability: Discover how to realistically estimate the chances of success and improve your odds.💡 Key Takeaway: Smart entrepreneurs don’t avoid risks—they manage them with strategy and confidence.“Your Network is your NETWORTH!”Make sure to add me on all SOCIAL MEDIA PLATFORMS:Instagram: https://jo.my/paulalex2024Facebook: https://jo.my/fbpaulalex2024Youtube: https://jo.my/ytpaulalex2024Linkedin: https://jo.my/inpaulalex2024Looking for a secondary source of income or want to become an entrepreneur?Check out one of my companies below to see if we can help you:www.ATMTogether.comwww.CashSwipe.comFREE Copy of my book “Blue to Digital Gold - The New American Dream”www.officialPaulAlex.com

Welcome to the Level Up Podcast. I'm your host, Paul Alex. I went from being a cop to an eight-figure entrepreneur that helps average people like you and me make money every single day. I created this podcast to help you get motivated and to crush your goals. Let's win together.

Remember, I have your six. Get ready to level up right now. What's up everybody and welcome back to Level Up Podcast. I'm Paul Alex and today we're going to be talking about something that every entrepreneur needs to master, calculating business risk. Let me tell you something guys, risk is part of the game of life and business. But if you're not willing to take risk, you're not ready to succeed. That's just point in blank.

But that doesn't mean jumping in blindly. Smart entrepreneurs know how to evaluate risk and make calculated moves. So let's break down a simple formula to help you assess risk like a pro. First things first guys, start with a potential upside. Ask yourself this, if this works out what's the reward? Is it a new stream of revenue, a breakthrough partnership, or scaling your business to the next level? The key is understanding whether the risk aligns with your bigger goals. If the upside doesn't move the needle, it's probably not worth it to you. Make sure to check out my YouTube channel, official paulalex.com for more motivational episodes. Second, evaluate the downside. This is where most people mess up.

They don't think about what happens if it fails. Ask yourself this, what's the worst case scenario? Can I recover from it? If the answer is no, that's not a smart risk. But if you can handle the fallout, that's your green light to. But if you can handle the fallout, that's your green light to move forward. Entrepreneurs don't avoid risk. They minimize the damage when it doesn't work out guys. And lastly, factor in the probability of success. This is about being honest with yourself.

What are your chances this works out? Do you have the skills, the knowledge, or the resources to make it happen? And if not, what can you do to improve the odds? Risk isn't about rolling the dice, it's about stacking the deck in your favor guys. So the bottom line here, the formula is simple. Upside, downside and probability.

If the upside outweighs the downside, the odds are in your favor. Take the shot, but if it doesn't pass the test, it's better to pivot than to gamble guys. Thanks for tuning into Level Up Podcast. I'm Paul Alex reminding you that success isn't about avoiding risks, it's better to pivot than to gamble guys. Thanks for tuning in to Level Up Podcast. I'm Paul Alex reminding you that success isn't about avoiding risks, it's about managing them. You gotta think smarter, you gotta act bolder.

And as always guys, let's level up. Thanks for listening up to Level Up Podcast. If you enjoyed today's episode, make sure to share with a family, friend, and everyone you know who's ready to level up. Leave a five star review on Spotify, Apple Podcast, and wherever you tune in. It really helps spreading the word,

and don't forget to check out officialpaulalex.com for more episodes and resources to kickstart your journey. Let's level up together.