In the previous article, talked about the first Business archetype, the Novice.

We focus today on the Gambler, which (as you will see) shares some characteristics with the Novice.

The Gambler is the business archetype most likely to take excessive risks and display a tendency towards grandiosity. The Gambler thinks in terms of "winning big" as opposed to "winning small but regularly" by taking a more practical and methodical approach.

Do you remember the example of the Novice and his "if you will build it they will buy it" mentality leading some business to end up broke, with cash flow difficulties and in dire straits? It could also apply to a business owner with a strong Gambler who can easily put all its eggs in the same basket.

As a consequence of his lack of planning, impulsivity, and short term focus, this archetype usually leads a business owner to suffer from a succession of up and downs cycles, tiring and energy sapping roller coasters.

Coming from a funding background, I associate another feature to this archetype: The tendency to accumulate debt and be overleveraged which is sometimes the consequence of too much risk being taken. Overleverage can be catastrophic if the risk does not pay off.

The attitude towards risk of a business owner led by a strong Gambler becomes by ripple effect a risk for financial institutions. Any properly run financial institution will obviously price that "additional risk" in, after looking at historical payment transactions during the due diligence, and put the business at a disadvantage by having to fork out more expensive commissions, fees, interest rates, conditions ... you name it! Depending on your country, there are different ways to check your credit score. Keep an eye on it before approaching lenders and check if it gives a correct representation of where your business is at.

Is it all negative with the Gambler? Of course no : each archetype has positive and challenging aspects built in.

Statistically, some risky initiatives pay off, and because he Gambler is ready to risk it all, he can hit it very big when things come his way. This is usually more a matter of luck rather than a properly thought-through business strategy that could be repeated consistently. But when it works ... it works in a huge way! 

Businesses leaders with a very strong a Gambler need to develop a long-term vision, plan and strategy that they can begin to work on a consistent basis. Without a vision a business owner led by a Gambler archetype (and by extension his organization) has a tendency to suffer from a lack of focus and discipline. He greatly need to build his Warrior and Entrepreneur archetypes (which we will cover in subsequent articles) or surround himself accordingly in order to sustain his business and make the most of the strengths coming with the Gambler archetype.

If you have taken our Money Quiz, which similarities can you see with the Fool archetype?