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How Do Mortgage Entrepreneurs Approach Risk?

Taking risks isn’t easy, but smart risks can fuel a successful business. Entrepreneurial professionals understand this relationship between risk and success very well. They know that to see their business grow, it’s necessary to take some chances. When it comes to loan officers, not all of them are comfortable with risk. It takes an entrepreneurial LO to embrace the value in risk and to give up comfort and certainty in exchange for the potential of increased success. This is how these professionals approach risk differently:

Innovation

Entrepreneurs are problem solvers who thrive when coming up with new solutions, and innovation is at the heart of their work. These LOs aren’t content with maintaining the status quo. They’re active learners who are constantly striving for improvement. When they discover a new technique or tool that interests them, they often want to test it out. After some evaluation and consideration, these entrepreneurial LOs are eager to experiment. There’s never a guarantee that these experiments will work out, and there’s always some level of risk involved when trying something new. Entrepreneurs see that potential for risk as a part of their innovation process.

Open Mind

As I mentioned above, entrepreneurs regularly try new things, and they have practice handling the many different outcomes. Sometimes you try something and it’s a great success. Other times, you might not see the results you were hoping for. Entrepreneurs know how to remain open minded. Because the regularly experiment with risk, they know not to get attached to one possible outcome. They know that the potential for failure is part of risk, and they don’t let that keep them from trying. They also remain open to the possibility that an experiment could turn out differently than they’d planned and still be beneficial.

Learning Opportunity

When you try something new, whether it goes as you’d hoped or not, there’s an opportunity to learn something. Mortgage entrepreneurs capitalize on this. While they certainly want to see a successful outcome, they’re able to find value in any results. When a risk ends in failure, it’s an opportunity to learn for future endeavors. What went wrong? What could have been done better? Which skills can I strengthen? Entrepreneurial professionals know how to maximize the value in risk, regardless of its outcomes.

Calculation

Despite their comfort with risk, these entrepreneurial professionals aren’t throwing caution to the wind. Their confidence comes from careful calculation and a depth of experience. Entrepreneurs regularly practice taking risks, and every outcome provides a more informed foundation for future decisions. They use this accumulated knowledge as well as their industry expertise to weigh the value of risks. Value is really the key here. Entrepreneurial LOs are prepared to calculate what a specific risk is worth. If the potential sacrifice is too high, they step back. If they can accept the potential consequences, they move forward after careful consideration. They know how to make calculations and arrive at a clear decision without getting caught up worrying about their decision. Their process gives them the confidence needed to take the next step.

Mortgage entrepreneurs are successful because they evolve. If you become stagnant in this fast-paced market, it’s easy to plateau. When you approach risk like an entrepreneur, you continue to push your business forward. Instead of fearing failure and shying away from risk, entrepreneurs balance curiosity and careful decision-making to arrive at a risk-taking strategy that works for them.

Kirk Brewer

Branch Manager | The Loan Geek | NMLS #150287