Face Reality, Don’t Hope or Wait

There are constant risks and challenges in life and business. Risks can be real or perceived. They can have varying levels of probability and consequence.

Challenges can also be called ‘problems’, ‘issues’, ‘dramas’, or -‘disasters’… you get the point! I choose to use the word challenge as have the ability to influence the ultimate outcome. Does this mean you can reverse time and undo a car crash or a natural disaster? Of course not! These are both examples of past events. You can, however, choose how you react and what you do with the subsequent circumstances and those impacted.

Risks and challenges can cause fear, loss, frustration, conflict, distraction and also hijack your energy and headspace.

How can you reduce risk and minimise the challenges you are faced with?

Face reality, don’t hope or wait.

The quicker you find reality, the quicker you can deal with it. Hoping and waiting are the natural enemies to finding reality. We all hope and wait at some level:; some more than others, some for longer than others. Often the bigger the risk or challenge, the less inclined we are to facing the reality surrounding it.

Reality should be based on facts, so where possible find all the relevant facts you can. If you don’t know the reality you are not in control and will then find it difficult to influence the outcome.

How do you find the reality of a financial risk or challenge?

Look for the numbers to show you reality. (And where possible you can take that a step further and use what you find to look forward and prevent the same occurring again – (more on this in future blogs).

A business/financial example:

I was asked to help a friend’s brother in law as he was facing significant issues with his business and was apparently at risk of losing his family home. Some of the first things I asked about were his profit and cash levels, current sales and debts. He looked blankly at me. I then asked, “Do you know how your business is performing?” The blank look turned to a look of despair. Next I asked, “Are you making a profit?” He clearly didn’t know. He had been hoping the business was performing ok but knew deep down that it wasn’t.

The next step was to help him find reality in each of the areas I questioned. Once we knew the reality, we were in a position to create a plan to improve his situation.

How do you find the reality of a risk or challenge involving other people?

It is often more complex to find reality when other people are involved, as there can in fact be more than one ‘reality’. This is due to differing individual perceptions and potentially opposing motivations. Individual perceptions are created by each person choosing different facts to create their reality. The facts they choose are usually based on previous experience, fear of loss, or greed.

Ultimately their reality is your reality if you need them to do something to get what you want. Their behaviour, actions or inaction will be determined by their reality.

To find their reality you need to make it easy for them to tell you what they are really thinking and why they are not doing what you expect and want them to do. You may not like the answer, but at least you will know what you are dealing with and be able to create a strategy to move forward.

Your various advisors will be able to help you find reality as well. Accountants, lawyers, insurance brokers and bank managers are all trained in different ways to help you find out what is really going on, and create solutions. Equally, a doctor can help you establish medical reality if your risk or challenge is with your physical or mental health.

So, next time you are worried about a risk or frustrated something isn’t happening when you want it to; find the facts, don’t just hope things will work themselves out or wait for results to fall in your lap! If nothing else, you will feel far more in control and be moving forward.