It was James M Barrie through his character Peter Pan that said “I’ll never grow up”. (Well, actually I believe it was Disney that first paraphrased him).

But there comes a time when everyone needs to grow up. And a time when everyone needs to not grow up!

From an entrepreneur’s viewpoint growing up is a two edged sword. Well, make that a triple-edged sword!

An entrepreneur must grow up enough to recognize and accept his own mistakes. After all, risk is the name of the game being played. And sometimes the other half of the risk game (impact) is in the negative when the risk bill needs to be paid.

There are two parts to the risk equation. Unfortunately, most people don’t understand the equation. An entrepreneur must understand the equation because he’s going to be playing the risk game.

What’s the equation? Risk times impact equals exposure. In every day English, risk is this bad, bad thing. We expose ourselves to risk. We’re caught by risk. He risked everything!

But risk really only means a probability not equal to one.  In short, if it isn’t certain, it’s a risk.  Good, bad, doesn’t matter. (Webster’s defines it wrong btw it has a very precise mathematical/probabilistic meaning). The good or bad is part of the risk impact (which can be good or bad). So winning the lottery has a risk associated with it (about the same as being hit by lightning) plus a good impact. So it has a net good exposure … if nearing zero can be called good! Until you buy the ticket … then it has a bad net exposure. Why? The cost of the ticket is usually higher than the exposure.

The point is that if you are going to play the game, you better grow up quick and realize you aren’t going to win all the time! That’s the other half of the game, you see. Sometimes when the impact is good (or even great) the risk just doesn’t come through. And sometimes, when the impact is bad it does. The key is to learn how to manipulate the risk so that it happens more often when the impact is good and less often when the impact is bad.

And that just because you’ve failed doesn’t mean that you did it wrong, or you’re wrong or anything else. It just means you weren’t lucky this time.

Of course, you also need to learn from what you’ve done. Which takes maturity.

The other cutting edge is emotional maturity. Learning to accept others’ failings. Learning to accept your own failings. In short, growing up emotionally.

The final cutting edge is the back edge.

Learning to NOT grow up.

Keeping that sense of wonder that opens your mind to new experiences.

Keeping that sense of exploration that what happens if … that opens your mind to constant learning.

Keeping that sense of fun, that is its own reward.

It’s this last blade that is the true cutting edge of entrepreneurial thought. The edge that cuts through the calcification that seeks to stratify those who do not understand the true entrepreneurial spirit.