If you’re looking to ensure that your start-up business not only survives but thrives long-term, you’ll need to think like a player sat at the table of a high-stakes poker game. Poker, like the world of business, is full of uncertainty. It’s a game where cool and calculated decision-making is necessary to stay the course.
There is one undeniable truth shared between successful entrepreneurship and poker strategy: success is reliant on the ability to make rational decisions under extreme pressure. When it comes to poker, there’s much more to it than mastering the hand rankings which govern online poker and live poker games. There’s a need to calculate probabilities, suss-out opponents, and make a strategy using incomplete information. In the corporate world, there’s similar market uncertainties and competition, not to mention the ongoing battle of predicting consumer behavior.
Any fledgling entrepreneur looking to muster the traits needed to steer their start-up to growth and long-term success should look to adopt a sharp, poker mindset founded upon the following principles.
Calculated risk management
Most experienced poker players understand the importance of risk versus reward. This is a mindset that new entrepreneurs must embrace too. It’s important for start-ups to avoid impulsivity. At every turn, weigh the potential risks against the potential returns. It could be launching a new product line, investing in new machinery or expanding your workforce.
Poker players don’t fear risk or failure. Far from it, in fact. Rather, they embrace taking calculated moves, knowing that winning and losing is part and parcel of their respective journeys. With your new business idea, you should avoid going all-in with an approach without carefully analysing the probability of it succeeding.
Staying calm and collected when the chips are down
The best poker players are able to maintain a zen-like state of mind. They rarely let emotions dictate their decision-making at the tables. The last thing any poker player wants or needs is to go on “tilt”. This is a state of pure frustration and irritation, causing irrational decisions.
New entrepreneurs face similar hurdles when emotions overrule logic. By remaining level-headed, it’s easier for start-up owners to avoid overly positive or negative reactions which can lead to rash moves. Resilient, long-term successful entrepreneurs learn to overcome obstacles without losing sight of their end goal.
An ability to read the room
Poker players are some of the best on the planet at reading their opponents, both in terms of someone’s physical tells and their emotional state. Entrepreneurs new to their respective industries need to have the same level of awareness. They need to be able to read the room, pinpoint trends and identify opportunities for new businesses to exploit and get ahead of the curve.
In poker, the difference between winning and failure is knowing when to raise, bluff or fold. In the corporate world, this translates to making strategic decisions such as knowing when to conduct market research for entering a saturated market, double-down investment on a high-turnover product, or to pivot to new approaches.
Focusing on the bigger picture
Successful poker players know that one poorly-played hand or one unlucky hand doesn’t define them. Instead, they maintain a laser-like focus on the wider picture. Their ability to keep calm through the ups as well as the downs is inspirational for entrepreneurs who are eager for sustainable success in their respective industries.
Start-up founders have to be dialed in and ready for a long journey. Overnight success stories are rare and, in most cases, nurturing a successful business takes several years of guts, determination and adaptability. Ultimately, new business owners that approach their firms as a marathon rather than a sprint are more likely to stay the course and ride out the waves of uncertainty.
It’s clear that a poker player’s mindset can be a powerful tool for fledgling entrepreneurs to harness. Ultimately, success in both poker and business is about playing the hand you’re dealt, while remaining committed to your long-term strategy.
