Why you shouldn’t start your own business
July 30, 2008 by ShannonCherry
Filed under Business
Yesterday, I told you the (sad) story of my friend who believes he can simply start a business and see the cash roll in.
Today, I wanted to share with you what I think it takes to be an entrepreneur.
- You need to understand being an entrepreneur does not equal a steady paycheck at first (or in some cases ever). I’ve interviewed tons of successful
people who have created major companies. All have on thing in common… they had a bog dream, but realized it would be tough at first. Some actually lived in their offices, eating ramen noodles and barely scraping by. Others started their businesses while working for someone else. In any case, it ‘ain’t’ easy or fast. - You need to be a risk taker. Most businesses fail within the first 5 years. You need to know that going in. And you need to know how you are going to deal with it, learn from it and move on.
- It’s lonely. Being an entrepreneur won’t help your social status. Let’s face it, working in a bigger businesses than you own affords you a social outlet. You may hate your co-workers, but working in a team setting has some benefits (even if it gives you someone to complain about).
- You need to be extremely organized. Ok, not extremely, but when you are you’re own boss (especially if you are working from home, which many do), you’ll find a lot to distract you from the task at hand. How you handle those distractions can make or break your business.
These are really great points and an important post.
Many people turn to franchises – some time correctly and sometimes incorrectly – assuming that they will solve these challenges. In our review of hundreds of franchise startups, here are some thoughts:
1) If you start a business and dependent on drawing a paycheck immediately, you could be setting yourself up for failure. Entrepreneurs should think worse-case scenario – And have a plan B. Even an established franchise is a risk.
2) Risk taker: agree. Not foolhardy, but able to sleep when things aren’t going your way. You can’t freeze when caught in headlights.
3) Lonely: I think as soon as you become a boss it becomes lonely – even as an employee. And a franchise does help with this. A benefit is the camaraderie of other owners running the same type of business.
4) Extremely organized: This is the biggest benefit – I think – of a franchise… it’s organized, documented, just add implementation.
Nice job, Shannon. I think it’s very valuable that you’re helping people think about start ups with their eyes open, not just hyping the myth.
Sean
All of these are excellent thoughts, but are focused on the entrepreneur, not the business.
One thing I think the entrepreneur needs to understand more than anything else is that they are in business to make money. To many, the glory is in “being your own boss”. The real glory is in taking in more money than you spend!
I think that you make some good points here. Many people do not realize what it takes to be a successful entrepreneur.
The only point that I don’t agree with is the lonely factor. I will admit that the social aspects of being an entrepreneur can be difficult, but I’ve found that successful entrepreneurs become more social. Networking is important for success, and finding like-minded people through virtual and actual community organizations is beneficial to entrepreneurs.
While it’s true that an entrepreneur will most likely not be in an office setting with co-workers (in the beginning at least) it should not be considered a lonely existence. I’ve found that no matter how much potential an entrepreneur has, she needs to have a successful team to support and assist her. Nobody can do it entirely on their own.
I’d love to hear your thoughts on teamwork and entrepreneurship.
- Rachel
From your mouth (or shall I say “finger-tips”) to God’s ears!! This post is so relevant in today’s business world as people think they can jump right in and make tons o’ dough.
Reminds me of an uncle of mine. Jack of all trades, master of none. And no stick-to-it-tive-ness at all!! He starts up a business and before he gives it a chance, he gets frustrated and moves on. Or, he realizes it takes actual work (gasp!) and drops the biz like a hot potato.
Great post!
Great article Shannon! I work with a lot of first time entrepreneurs and I’ve noticed some obvious trends, both positive and negative, about their mentality going into it. I find that the ones who end up being the most successful are the ones who “Find Their Crusade”, which I recently blogged about – because it can’t just be about money. http://jjastor.com/finding-your-crusade-the-difference-between-succeeding-and-failing
Being lucky won’t do you a lot of harm either! Luck is a key element in small business success, but because we cannot plan for it or control it we tend to forget it.