Becoming an entrepreneur means accepting risks that don’t come with conventional jobs and careers. Startups have a 19 in 20 chance of failure, and in the beginning, often don’t pay very well.

Entrepreneurs are committed enough to their ideas to accept these hazards, even though many of them could easily run a division of a large company or another “safer” option–and many have in the past. In my own case, starting Han Santos meant leaving my position as a partner in an established law firm.

Not everyone has the disposition or the means to accept the risks of entrepreneurship. People who are risk-averse will not be able to take the leap into entrepreneurship no matter how brilliant their business ideas.

In addition, many people’s personal circumstances do not allow them to take on the risks of entrepreneurship.

Unlike when I started Han Santos, I now have a mortgage, children on the verge of college, obligations to my elderly parents, and other responsibilities that weigh against taking the leap into entrepreneurship. John, the would-be entrepreneur, has similar considerations.

For those who can accept the risks of founding a start-up, the next crucial step is to develop a sense of good judgment. In business, this is far from simple: how can you tell if a successful outcome came from insight, or mere coincidence?

To better evaluate judgment, allow me to introduce the notion of the “called shot.” Metaphorically, it’s a prediction of the future that can be proven or disproven.

In a game of billiards, it is customary to state the shot that you are about to make. For example, you may say, “Nine ball in the left corner pocket, off the two.” Therefore, when you sink the nine ball with the two ball, there is no question that this was intentional.

When you articulate risk factors and mitigation strategies for your idea, make sure they are “called shots.” You should be able to tell whether you were right or wrong, distinguish measured risk from recklessness, and pivot when presented with new information.