Thought of starting up a business crossed your mind? Looking for the advantages and difficulties that you may face if you start a business? Here is a compiled list of the pros and cons of being an entrepreneur and starting a business and a few minute tips on getting started. Let’s start by defining entrepreneurship.
So, what is entrepreneurship?
Dictionaries define entrepreneurship as “the activity of setting up a business or businesses, taking on financial risks in the hope of profit.”. According to this definition, there are two qualities of an entrepreneur – number one, he/she hopes for profit. Number two, he/she knows there will be financial risks. So, an entrepreneur is basically a realistic optimist taking risks hoping for the best of profits. So, even while thinking of starting your own business, you must be aware that things are not going to be that easy. If this risk is involved, then why are so many people becoming entrepreneurs, in spite of being aware of the risks?
What are the risks?
Before getting into any business, it is advisable to know what risks are involved. Here is a list of a few risks that one may face when getting into venturing out with own business.
- There are chances of losing all they invest and have in a business:May be things did not end up where they ought to have been. This may result in losses.
- Loss of means of living: For many, job is the only way of earning a living. So, leaving the job all of a sudden to start from scratch may be difficult, given the reallity that they have to maintain their families and themselves.
- Lesser time with family:Any startup needs critical care till the stage where it is properly established. This may take away the time of the entrepreuners from their families, atleast for a small period of time.
- Pressure to maintain a steady flow of customers:Any company must ensure that it has a steady flow of customers to sustain itself. This is a bigger challenge to startups because they will not have credibility and fame in the market. This complicates when they misguided into improper marketing strategies.
Why do People become Entrepreneurs?
So, what makes people give up their jobs which give them financial security and venture on the path which has so may risks?
- They are fired from the present job :Paul B. Brown says,” John F. Kennedy said he became a war hero because “they sunk my boat.” I became an entrepreneur because I got thrown out of my job.”. Some people are forced to start their own businesses because they are forced to quit their previous jobs and cannot find other jobs. They will be in a do or die situation, having to feed themselves and their families. So, they have to do something, this something turns out to be their own business venture. Trust me, they never look back once they are fully established.
- They want to have full control on their destiny:Independent people do not wish others to decide what they have to do. They want full control on their professional lives.
- Innovation:Entrepreneurs do not begin their businesses right away. They first work for someone to gain some exposure and experience. Later, they find out the discrepancies in the present business scenarios and put it to best use in their ventures. Another most probable factor is that they have some unique ideas that they are confident that they will definitely be successful. For example, think of Jeff Bezos, the founder and CEO of the Amazon. He saw the exponential increase in the internet users and was sure that online shopping will work out.
- They will be the Boss:They become fed up with working under someone and want full control over their workplace. So, they venture on their path of becoming independent. Think of the flexibility of working hours and dress code.
- They are inspired and want to inspire others:They are inspired by some successful entrepreneur and want to be like them. They strive towards their dream and also wish to become role models to others in future.
- There is no age barrier and no formal retirement: Any company which hires employees specifies the maximum age limit that any person can apply for jobs. But you can begin your own company even if you are just 18 years old or 75 years old. You can work as long as you please before entrusting the work to someone who is able to handle it.
- They contribute to the society and the nation:Most of the companies at present are the Multi- National Companies who take all the profits out of the country. But in case of entrepreneurships, the profits remain well within the country. They also take up various social awareness drives that contribute to the betterment of the society.
- They earn a living doing what they love:Nobody takes up a business in which they have no interest in. Quite obviously, it is something that they are passionate about. So, how about doing what you are passionate about and make a living out of it?
- No Qualification needed:When you apply for a job in a company, there are good chances that the demand for at least a graduation. But if you are starting your own business, then it does not matter what your educational qualification is, only thing that matters is you skills and hard work.
- Create their own work culture:All those employed under other people experience some sort of uneasiness in their jobs like wanting a work from home, wanting a childcare for their children, creative meetings, etc. How about giving an atmosphere including all these to your employees?
How to avoid risks?
While it is almost impossible to eliminate the risks completely, it is definitely possible to minimise the risks to the maximum extent. Here are a few suggestions:
- Start your business venture while still working so that there will be some way of maintenance in case things go wrong. It is also good if you could switch to a part time job while going ahead with your business venture.
- Make savings while still working so as to it comes to rescue when worst of the things happen.
Entrepreneurship equates to innovation, hard work and perseverance. So if you are planning to start a business venture and are serious about it, the first step towards it is to keep up your motivation and increase it day by day. Be confident and best of luck in your endeavors.
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