The most financially successful set of people in the world today are entrepreneurs. I stand to be corrected though, But Forbes agrees with me on that. This financial success in entrepreneurship is driving a large population into becoming entrepreneurs. Who wouldn’t want to be rich? Not me if you’re asking? Lol. But there are important questions you should ask yourself before diving into entrepreneurship. Not everybody is cut out for the stress and sometimes torture that comes with starting and running a business. Some people are just better off working at a job, sad but true.
The world of entrepreneurship is not a bed of roses, it can’t be your easy way out of hard work. To be a successful entrepreneur, you have to be ready to put in the work, extra work at that. Entrepreneurship can drain you emotionally and physically. Here are some reasons a start-up might not succeed.
The first book I read this year, how they started, highlighted the story of 25 start-ups. Most of this start-ups were not profitable for about one year, or even two years after they were established.
Most people start up an enterprise and expect it to start yielding capital on the first day of launch. I don’t think that’s how it works. Entrepreneurship is not a get rich quick scheme. If you want to start, you need a long term mind-set. You have to establish the fact that your business might take a while to become profitable and you have to prepare yourself for that.
A successful business is one who has the trust of its customers and clients, and trust takes time and sacrifice to build. But if you want to start making the profit ASAP, it means you might have to start cutting corners, and that’s bad for business. Don’t be deceived by the successful lifestyle most entrepreneurs live, their success was built over time.
Starting because you’re tired of doing 9 – 5
Most people start their own enterprise because they’re tired of doing 9a.m to 5p.m jobs. You want to start working lesser hours and you think your new enterprise is the best place to do that? Stop hallucinating my friend. It’s your enterprise now, you don’t have a fixed salary anymore. What you get is what you put in. you should be ready to put in more time into your own start up.
Relaxing and taking time off from your business is something you can afford when you now have a fully systemised business. When you read about the lives of most successful business people, they had days they had to sleep at the office.
Wanting to live a glamorous lifestyle
Most people go into business because they envy the glamour around the life a business person, and they launch their own business simply because they too want the glamour of running a successful business. Don’t get me wrong, I want the glamorous lifestyle. But at the initial stages of your business, that kind of lifestyle shouldn’t be your priority. You might at the initial stages keep re-investing most of your profit so you can grow fast.
I heard an entrepreneur answer the question, “why is your business so successful”? His answer was simple, “have a rich mind-set and a broke lifestyle”.
In my opinion, a legacy entrepreneur (an entrepreneur who is in it to create a legacy) is likely to succeed over a lifestyle entrepreneur (an entrepreneur who is in it to live a glamorous lifestyle).
No proper research
A lot of entrepreneurs just put in capital into a business without proper analysis of the market they’re about to enter. Without proper research, you’ll make a lot of mistakes and some might be costly enough to cost you your business. A proper understanding of the business you’re about to venture into is key.
When you do a proper research, you’re able to learn how to run your business effectively with the lowest possible cost.
This is not to scare you away from entrepreneurship, but to arm you properly so you don’t fall into the wrong side of the statistics that says 80% of start-ups fail within their first 18 months.
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You can also read an article on lessons from an entrepreneurship hang-out