Two Types of Entrepreneurs: Risk Takers vs. Small Bettors

Over the course of my career I have had the good fortune of working with many innovative business partners. Regrettably, some partnerships ended poorly because my temper got the best of me. For years I was convinced that I did not get along well with others. But recently, upon deeper reflection, I concluded that something else was to blame because I have many great business relationships that have endured the test of time. So what sets me off? What makes a partnership toxic for me? In a nutshell: risk takers. I do not like taking risks. It's not my style, and I can't relate to it.

A scan of the entrepreneurial landscape suggests two fundamental types: risk takers and small bettors. Apple (under Steve Jobs), for example, took large risks — betting the company many times over. In contrast, Twitter has few big bets in its history (heck, it started as a side project), growing instead through iteration — one small bet at a time. Because both forms of entrepreneurship can lead to success, the question of which is better is settled by your tolerance for risk. I prefer to make a small bet, analyze the results, and build on that effort because it is the more risk-averse approach to growing a company.

When forming a business partnership make sure your entrepreneurial styles align. Compatibility with respect to risk can help you avoid painful and costly conflict down the road. Maybe take a trip to Vegas together: if your partner is sitting at the blackjack table the entire time while you sip fancy drinks by the pool, maybe you're not a good match.

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