Protect Your Downside, the Upside will take care of itself

In high school, we were always told by the teachers to start preparing for the subjects in the reverse order- start with the subjects you are not so good with, and then do the ones you like. In this case, you put in more direct efforts on the difficult subject- you practice more and more so that by the end of preparations you are comfortable with all the subjects. But, it is definitely not a good idea to ignore your weak subjects. That is exactly how a business runs. You have to be humble, realize your mistakes, accepts you were wrong, cut the losses and move on.

Sometimes the most important thing to do is to stay out of the harm way. Rather than focusing on your strengths and on being absolutely flawless and perfect, just make sure you don’t put yourself in any situations where you overdo it. If you miss a day or two from your gym schedule, you don’t have to miss the whole week to ‘start fresh’. Or you don’t have to always treat your bad mood with a chocolate ice-cream. Some people allow one treat to become a 50-shades-of-chocolate-3-month-binge-of-fast-food, but it doesn’t have to be that way.

If you fall “off the wagon”, cut your losses, don’t worry about it, and get right back on the track. Immediately. Sometimes, the damage isn’t minor, but everything can be sorted to make things better. Invest in things you can understand, and don’t chase rainbows. Always have a back plan in place. Lower your expectations, and raise your standards. When I say lower your expectations, I don’t mean you stop dreaming. Don’t expect things to go perfectly. Be realistic and dream the impossible.

While we spend all our time imagining our future victories and focusing on what we are already good at, we tend to forget to prepare ourselves for the worst case scenarios. People would trust your product or service when you assure them a lot of downside protection. You have to spend some time calculating the worst-case scenario valuations. We do this because we hate, absolutely hate to lose. If we prepare ourselves to deal with the worst, we may be actually successful in avoiding the potential for a permanent loss, which becomes difficult for the company to cope up with. As long as you can ride out the waves, and are correct in your downside evaluation, then you don’t have much to worry about.

You increase the probability of success by taking informed decisions to eliminate risks

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