Owning a Business Involves More than Collecting Fast Cash
Know what it takes to be an entrepreneur
Oftentimes, the lure of owning a business is more about mistaken notions of fast cash and being your own boss, than about hard work and decision-making. Too many failed business owners believe that the biggest advantage of working for themselves is having no boss. Sure it sounds good, but often a would-be entrepreneur isn’t prepared for the rigors of running a business. It takes vision, capital, courage, commitment, and determination to run a business and without those things, many entrepreneurial hopefuls are quickly shut out of the market.
Avoid the misconceptions
The best way to decide if being an entrepreneur is right for you is to take a close and honest look at your motives, and compare them to those of former business owners. Here are some common misconceptions to avoid:
- I don’t need a business plan. A new business owner may think that having a solid business plan written down is a waste of time. Hee may fool himself into thinking that a “mental plan” is enough to get the business started., and this can be a regrettable mistake. Writing a plan down lends mental clarity. It also can show a business owner any missing parts of his plan. For example, a business plan will hone in on exactly how much capital is needed to start up operations, how much is presently exists, and viable options for coming up with the rest. A “mental plan” is much less likely to have all details in place.
- I have a unique vision. A good idea is not the same thing as a viable business. A potential business owner’s love for a new product doesn’t mean there is a market for it. The simple fact that one person (the would-be business owner) is willing to pay $49.99 for a product, doesn’t mean that other people are. Millions of people have had a great idea but only a few have been able to build a business out a of it.
- The competition is no problem. Some potential business owners are so focused on the idea of making fast cash that they forget to do their homework. Venture capitalists hear this all the time: “This widget is going to generate money because no one else makes it!” The reality is that if no one else makes it, one of two things is going on: Either the business owner hasn’t really searched hard enough or the product isn’t in demand.
- I want the satisfaction of owning a business. Ego is another enemy of business ownership. Some owners insist on running the show but have no real idea of how to do it. Successful entrepreneurs stick to what’s best for the business and are willing to defer to more knowledgeable managers when necessary. For them, ego isn’t a part of the equation when dollars are at stake.
Think twice about business ownership
Fast cash and running the show are both nice, but not necessarily the best motivations for starting a business. Much more is involved and potential business owners should sit down and consider their true goals before starting out. Unless you’re prepared to handle the full responsibilities of an entrepreneur, it’s best to keep your day job and leave business ownership to someone else!