How will this increase my ratio of favorable to unfavorable outcomes?

Most entrepreneurs fail.

The small business administration shows that about twenty percent of them go out of business during the first two years and close to half during the first five years. And in the end, only about a fourth of small businesses make it to fifteen years are more.

Because of this grim probability, entrepreneurs should do everything they can to improve their odds of success, rather than leaving it to chance. They should focus on levers have a disproportionate impact on their brand’s ability to not only survive, but succeed.

One leverage question that’s helpful to keep at the forefront of your mind is:

How will this increase my ratio of favorable to unfavorable outcomes?

That’s all odds are. It’s basic math. If you’re launching a new business and you’re not sure whether you should take certain actions, use that question as a filter.

For example, if you can execute growth tactics that are riskier in terms of the odds of them paying off, but they’re not going to kill you if they don’t, then do them.

If you can generate a massive output of sales and marketing efforts on a daily basis, your chances may be low with each one in isolation, but the magnitude of attempts will be worth it, since they elevate your skillset.

During the pandemic, my friend and his wife, whose enterprise centered around hosting live events, found creative ways to improve their ratio of favorite to unfavorable outcomes. Rather than making a lateral move of incrementally improving their current service line, they switched to a different game with better odds for them.

They launched entirely new digital offerings to their customers. That way, their products weren’t limited by the constraints of travel bans and remote work, but still delivered the unique brand of value their community had come to expect.

Jason’s painting on pie in the sky ideas says it all:

Not everything is worth seeing through until the end. And as we grow, our dreams and desires and priorities can change. But don’t be tricked into stopping just because the odds seem long. Everything is impossible until it isn’t.

How are you increasing your odds of good outcomes? In an economy where so few things are under our control, the least we can do as business owners is put a structure in place that tips the odds heavily in our favor.

Because if there’s one variable the entrepreneur can control in today’s culture, it’s their output. Anyone can own the means of production now, essentially for free. Talk about a lever that has a disproportionate impact on your brand’s ability to succeed.

That’s the beauty of probability. The question is whether you’re willing to take small actions on your behalf to vastly improve your outcomes.

Even if you’re not exactly sure what those outcomes will be.

Are you doing everything you can to improve your odds of success, rather than leaving it to chance?