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Starting your own venture obviously carries a considerable amount of risk. Embracing failure and aiming to fail fast does not mean being reckless with risk. Instead, it means understanding and accepting risk as an inherent quality related to starting your own business and managing that risk by improving your odds.

Think of risk in these ways:

 Entrepreneurs interpret the risk vs. reward calculation differently.No one who is starting their own business believes that their actions aren’t risky compared to choosing another path. What they do believe, however, is that the reward justifies the increased levels of assumed risk.

 The entrepreneurial mindset changes a person’s perception of risk.When failure is seen as a steppingstone and the path to success is understood to be nonlinear, an individual’s perception of risk changes dramatically. Compare that mindset with someone who sees failure as a dead end, or any path to success that is not a straight line as invalid.

Calculating risk based on a massive reward, perceiving risk through the lens of failure as an opportunity, and being comfortable with risk all differentiate an entrepreneur from a speculator or a gambler. In this way, risk can be seen less as static odds and more as a condition that can be influenced.