Donít cheat the system Ė youíll end up losing eventually
Famous poker star Phil Ivey found out the hard way that finding
loopholes in a game to help you win might just bring you down
instead. While Ivey has previously won ten World Series of Poker
bracelets, it was Baccarat that ended up being his mistake. After
learning of an ďedge sortingĒ advantage - identifying cards by the
patterns on their backs, he
bagged almost $20m at casinos. However, once the casinos learned
what was up they dragged him to court where he had to return his
wins, his reputation tarnished.
As a leader, if you identify grey areas where loopholes can be found
to gain a competitive edge then itís better to just avoid them. You
risk losing money and time in the courts as well as a great deal of
reputational damage if you play that game.
Keep tabs on your bankroll
A professional gambler always knows how much they have in the kitty
and how much is too much to stake. For instance, in sports betting,
itís recommended never to stake more than 5% of your bankroll on any
one bet. The figure is around 4-5% for very confident bets but
decreases from there.
You can take the same mindset across to business. You should always
be aware of the state of your business liquidity as well as your
debt capacity. When you are investing in new infrastructure, staff,
or other strategic investments, be aware of the cost of the
investment as compared to the risk involved in the purchase, too.
Always know what your money situation is like and donít ever put all
your eggs in one basket.