This archive report was first published on 28 July 2019.
The Dark Side of Entrepreneurship ¶
Entrepreneurship is often touted as a path to financial independence and freedom, but the reality is far from it. Many entrepreneurs will tell you that starting a business can put you in a worse financial situation than being employed, at least in the beginning.
According to studies, it takes an average of 7 to 10 years for a start-up to become successful. As the saying goes, 'overnight success takes about 10 years.'
One of the biggest misconceptions about entrepreneurship is that it's a quick way to make money. However, the truth is that starting a business will probably put you in a worse financial situation than if you're employed. You'll have to stock up on products, pay off loans, pay for an office, pay employees, spend on marketing, and absorb business losses, among other expenses.
Before your business breaks even and starts making good money, be prepared to go for a while without paying yourself as you'll have to reinvest to help the business grow. That's why it's essential to have saved at least six months' worth (or ideally a year) of wages before quitting your job to start a business.
Another challenge of entrepreneurship is the impact it can have on your personal relationships. Starting a business is a juggling act that will see you spending more time away from your family and friends. You'll find yourself skipping, postponing, and cancelling on friends and family to meet the demands of your start-up.
Entrepreneurship is also a lonely road, and you'll probably feel like most of those around you don't understand what you're going through as a budding entrepreneur. Rejection is also a significant part of the game, and you'll have to develop a thick, tough skin because you'll hear 'NO' over and over.
However, it's essential to remember that ideas are nothing, selling is everything. Turning your idea into reality is the real test, and what matters more is your ability to sell. This encompasses selling your idea, vision, services, product, and yourself.
Lastly, entrepreneurship is not a 9-to-5 job. You'll work more hours than you ever did while employed, but that's okay because it will all eventually pay off. However, remember to make time for yourself and your family, and don't fall into depression or harm your health and well-being because of overworking.
By understanding these challenges, you can better prepare yourself for the realities of entrepreneurship and make informed decisions about your business.
