Often, we see businesses succeed or fail. Same with people and their careers. If they succeed, we see them as brilliant, gifted or even smarter than regular people. In contrast, when they fail, we see them as the opposite. Of course, we know that there are some variables that play a significant role in the game. These are luck and risk.

Risk management is a key skill. It doesn’t matter if it’s starting business or just asking somebody out. In order to move forward, we need to learn how to take risks. Depending on our attitude, we might be risk averse or risk seekers.

On the other side, there is luck. And in my opinion, this is where the danger comes.

Starting your business requires assuming a certain level of risk. Probably you’ll struggle to make it economically viable. It’s normal. It’s not easy to manage your cash flows, paying wages and suppliers while chasing customers to pay you, at the same time you’re looking for new ones while your competitors are developing a new product or offering something to your customers that your company can’t provide.

And then, we see the winners. Those companies that started from scratch and became highly profitable corporations. We want to know how they did it, how they fought against all odds, day and night, until they made it. Who doesn’t know the stories of big corporations starting in a garage?

Some business owners explain how they founded their companies and became successful. Usually, they come from wealthy families or they just have the right contacts. Of course, I don’t mean to discredit them. To make a business succeed you need much more than just money to start. Some business owners have children, rent, debts and still they managed, but their chances of success are really low. How can you look for customers when raising a kid or simply living by yourself? Try not to feel frustrated, especially if you have a lot on your plate.

Luck or risk also determine what resources might be available to you and you can’t control neither one nor the another. You’ll never be able to eliminate them. However, working on your skills and developing a growth mindset can tip the balance to your favour and increase your chances of success.

In the end, luck and risk are temporary. An innovative product can wipe out a well established company that has been running well for years. But those who made their wealth thanks to more favourable circumstances, they will have fewer chances to get back on track when things go bad.

Therefore, lottery winners usually lose their fortunes and file for bankruptcy, while rich recover their wealth after a catastrophic financial loss. The reason behind is the skills they possess, or as Robert Kiyosaki says in Rich Dad Poor Dad, financial literacy.

Try to do your best and don’t compare yourself to others. Even if you don’t get rich, you can improve your financial situation by learning and creating new habits which at least will give you more peace of mind.