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Overcoming the riskavoidance

Written by: Stefan Doering

Article Overview: Today the incredible woes of our economy have shown how we have become addicted to “stuff”. As we accumulate more and more stuff, we are continually inundated with marketing from businesses teaching us what we have is never enough. In order to be happy we need to go out and buy more. So we do. Eventually came to the point of cheaper credit allowing us to borrow more money with the notion of paying it back later. And then we lost control. while credit is tightening all around us and sales slumping in almost ever sector in our economy. “… the underlying reality endures: after two decades in...extraordinary surges of borrowed money...a new era of risk-avoidance appears at hand.”Peter S. Goodman, 6.5% Out of Work, The New York Times, Saturday, November 8th, 2008, p. A20. How to become successful in this “post-stuff” world,

Overcoming the riskavoidance

Years ago I was in the throws of a divorce and finishing closing down my second company. My wife at the time and I agreed she would stay in our apartment as I moved out.

As we sorted through who would keep what of our joint possessions, I realized how much “stuff” we had accumulated. And I had no way of taking it with me as I was staying with friends and family, and living like a gypsy moving from home to home.

And that is when I learned the art of living without “stuff”.

I got rid of all almost everything I owned. Soon I was able to do complete moves in one carload including Pluto, my black cat.

While I was able to get back on my feet a couple of years later I learned something extremely valuable: what I thought I could not live without was easy to let go of. I lost all attachment to “stuff”. What I thought were “valuable” possessions were worth literally nothing to me and certainly to others.


What actually became valuable to me were the non-physical things, like traveling around the world, meeting new and interesting people, learning how to fly an airplane, and growing spiritually.


It was a gift not to have all the physical “stuff” to take care of. I felt lighter, more flexible
and much more versatile in what I could do.



Today the incredible woes of our economy have shown how we have become addicted to “stuff”.

Businesses want us to buy more because they have their investors to answer to, showing constant and ever-escalating improved ROI (Return on Investment.) So their investors can go out and buy more “stuff”.


It is also partially due to us wanting less expensive products so the quality of products have suffered substantially. So they don’t last nearly as long or do as good a job as quality products from the ‘50’s and ‘60’s.

And as we accumulate more and more stuff, we are continually inundated with marketing from businesses teaching us what we have is never enough. And that we need to go out and buy more in order to be happy. So we do.


Eventually we ran out of money to buy more, so we started borrowing it. With credit cheaper and easier to get, we went on a buying binge.



And then we lost control.


“All addicts show a loss of control of the activity, compulsively seek it out despite negative consequences, develop tolerance so that they need higher and higher levels of stimulation for satisfaction, and experience withdrawal if they can’t consummate the addictive act.” Dr. Norman Doidge, The Brain That Changes Itself, Penguin Books, 2007, p. 106.



And now the withdrawals begin.



Unemployment figures for October show layoffs jumping about 300% over September, the most severe in a quarter century, while credit is tightening all around us and sales slumping in almost ever sector in our economy.


“… the underlying reality endures: after two decades in which economic growth has been powered by extraordinary surges of borrowed money—a time of entrepreneurial machismo—a new era of risk-avoidance appears at hand.” Peter S. Goodman, 6.5% Out of Work, The New York Times, Saturday, November 8th, 2008, p. A20.


Mr. Goodman has an interesting point. Entrepreneurs, by their very nature are risk takers. What he is alluding to is we have been following the wrong road map to success.


Yet with every serious breakdown comes a serious breakthrough.


Just like there is good food and bad food, there is good risk and bad risk. Successful entrepreneurs understand the “risk-avoidance” really refers to “bad” risk.


“Good” risk-taking entrepreneurs are becoming:

* “Stuff” reduction experts—those who help people make it OK to have less… a LOT less. HOT: Making less = more. Make it a fashionable trend and more valuable to have less.
* Environmental products and services specialists — that help save money for businesses and individuals in all areas.
* Sustainable coaches and consultants—particularly those focused on income-generating (or expense reducing) challenges.
* Stress-reducing practitioners—specializing in yoga, meditation, and alternative health.
* Debt re-financers—helping people manage recovery from their addictions to buying “stuff”.
* Alternative energy experts—with President Barrack Obama predicting alternative energy is the economy of the future he promises to invest $150 billion into this industry. This is the next major market.

These are just a few of many. And in order to be successful in this “post-stuff” world, it really only takes two skills:

1. a good understanding on what is going on in the marketplace, and

2. a creative mind that thinks way outside the box.



And with this combination, I promise you will increase your freedom and decrease your dependence on “stuff”.


Action Steps for the Week:

1. Increase your Freedom: look to see what you are addicted to in the way of “stuff”. Do you love clothes, a new car, more and more music, eating out… what? Do you really “need” it? What can you let go of completely? Contemplate what would happen in your life if you let it go.

2. Recreate your Business/Career: What can you change about how you do business? What real, quality-driven value can you add to what you are selling? Something that will not just pile up as more “stuff” for someone else? Think about what you are selling and what the real impact it is having for others. How can you re-brand/re-design so people appreciate it, especially as it pertains to our addiction to “stuff”.

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Article Tags: apartment, black cat, carload, divorce, economy, fly, friends and family, how to fly an airplane, investors, job, living like a gypsy, marketing, possessions, quality products, return on investment, roi return on investment, traveling around the world, woes



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Re: What is your biggest challenge? Today? - The biggest hurdle for me to start my online firm, was getting financed and overcoming the technology learning curve. I spent the better part of 6 months attending workshops and unpaid training to learn about SEO and online content management systems. I also spent a month learning basic programming, web site creation tools, and general IT skills. The culmination of this training enabled me to make a thorough presentation to the bank and to private investors. I was able to secure some finances and some servers to run my operation. However, the biggest challenge was time. Overcoming what to 'do' with your time is something entrepreneurs struggle with every day. There is always something you could be doing 'better' or 'worse' with your time.


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