Entrepreneurs must be very optimistic.
Capitalism would fall if we did not have plenty of people who believed in the value of their work. Optimism is important to becoming a successful entrepreneur. However, being optimistic has a trade off that causes entrepreneurs to dismiss the challenges that are included in building a growing business.
Entrepreneurs will need to truthfully assess their excitement at the door when they’re only getting started. Entrepreneurs will need to be strict about identifying what could go wrong and how risky it would be- but that is still not enough.
Assembling a buffer over every failure gives entrepreneurs an excess cushion to cover their losses. Entrepreneurs can not have too much protection.
Besides, wouldn’t you feel more confident in your optimism knowing that even if something fails- you’ve already seen it coming and have a failsafe ready?