So you want to be an entrepreneur?

There are several reasons why someone might want to become an entrepreneur. You might be sick of your job, laid off due to work shortage, or maybe you’re like me and you just can’t stop dreaming big. Regardless of the reasoning, success takes more than just an idea, it takes someone with an entrepreneurial mindset and the ability to wear many hats. 

It takes a very strong person to enter into the world of entrepreneurs and if you aren’t prepared, you can run the risk of losing everything. Before you decide if entrepreneurship is right for you, make sure you understand what you’re getting yourself into. Here are some things you should consider before declaring self-employed on your next tax return.

You’re Mostly On Your Own

Friends and family are probably not going to be your biggest supporters. It’s a natural human instinct to want to protect the ones we love. Unfortunately, this is why our family and friends might attempt to talk you out of taking any risks. Remember when I said that it takes a specific type of person to be an entrepreneur? Well, unless your friends and family are also entrepreneurs, they’ll likely encourage you to stick to the safetynet of regular employment. 

Don’t let this discourage you, let your passion guide you and you will find your market. Eventually, if your hard work pays off, it will be hard for your friend and family to ignore your success and fulfillment. Just remember that when they ask for the family discount.

Long Hours 

Most new businesses take a long time to break even, let alone make a profit. This means that you are likely playing several roles in the start-up phase. Expect to work long hours to keep up with the demand of growing a business from the ground up. When starting a new venture, you could end up working twice as many hours as you did when you had the comforts of the 9-5.

Remember to schedule your day. This can help you balance your new venture with your life so you don’t run the risk of burning out. Take time to appreciate your wins and reward yourself with taking down time.

Hard work  

Starting your own business on your own isn’t an easy way to make a living. It takes a lot of hard work and dedication to succeed in business. Probably more than anything, it takes discipline. No one is there to scold you for coming in late or not hitting your deadlines. This sounds appealing until you start falling behind and your business sufferers. Most businesses fail because the owner doesn’t want to put the work in to succeed.

Not only are you the CEO but you are the janitor as well. There is no one doing the dirty jobs for you when you first open. You have to be willing to roll up your sleeves and get the job done no matter how difficult it may be. 

Learning Curve 

In order to succeed, you have to be willing to commit to a lifetime of learning. You need to become an expert in every aspect of your business. It isn’t enough to know how to perform your own skills, you also have to learn other specialized skills such as bookkeeping, marketing, sales and a ton of other roles that you may not have pictured yourself doing. Just because you have a ton of experience or fancy education as a photographer, doesn’t mean you know how to manage a website, create paid advertising campaigns, balance your books, or file for licenses and permits. You have to navigate a world of zoning laws, safety inspections and write-offs. 

The good news is that once you’ve run your business for a few years on your own, you’ll either be a multi-disciplined expert, or you will have discovered which employees will have the best return on your investment. Another bonus to being the jack of all trades in your own business is, your employees can’t say that you don’t know how to do their job. If you ever need to step into a position for any reason, you’ll know exactly what to do. 

Adaptable To Change

Every industry is in a constant state of change and in order to succeed, you have to stay up to date and ahead of the trends. This means that you need to become an expert in your field. Go to conventions, read the latest news and stay up-to-date on all the latest innovations in your industry. Trends are an important area to study. This means that you shouldn’t just watch what’s changing in your industry, but look into related industries and emerging businesses as well. These are typically a good indication on where the market is heading. 

One example is the rise of home delivery during the pandemic. New delivery businesses started popping up everywhere and a new hole opened in the market for a completely online grocery store.

Becoming a trend setter is the dream of every entrepreneur. There’s no recipe for predicting trends but the more you actively pay attention, the more adaptable you will become when you spot a change on the horizon. Always ask yourself how your skills or services can be expanded to include more revenue streams.

High Risk ​

Entrepreneurship has many benefits but they come at a very high risk. Not only do you not have the comfort of your weekly salary, but you may have your life savings on the line and also be on the hook for several thousand a month in commercial rentals. If something happens, like say a pandemic, you are still responsible to pay for your space regardless of income. If you can’t pay, you risk losing your entire inventory and expensive court battles. 
Low Pay- You might think the boss always makes the big bucks, but that’s rarely the case in the beginning. Most businesses start out as one person’s passion and slowly grow into unpredictable machines. During this growth phase, entrepreneurs typically have to shell out the lion’s share of the company’s profits to their employees. It typically takes most startups three years or more before they can expect to reap the rewards.

Know The Rules

Knowing the rules is important. The last thing you or your new business needs is a little oversight forcing you into bankruptcy. There are different rules for all sorts of different industries. For example, if you’re starting a food related business out of your home. Although it is technically legal to do so, your home must first be zoned for mixed commercial and residential uses. On top of that, you are required to install specific equipment that is up to health and safety standards. You also can’t have an animal, the space must be separate from other family members etc. There’s specific insurance for the property as well as liability insurance, food handling certificates and so much more. These aren’t necessarily the first things you think of when starting a cake business. 

Big Rewards ​

They say, “No Risk, no reward.” I’m inclined to agree. 

Despite the high risk, and hard work, the payoff can be huge. Multi-billionaire Jeff Bezos, built his business up from a garage full of books and a minivan, into the world's largest ecommerce enterprise. His business plan included taking a loss on every product until the market adopted the business as a trusted source. The risk of selling everything at a loss cost Bezos and his investors millions before Amazon started to see profits. I don’t know a person in the world crazy enough to risk millions they don’t have on a dream.

This doesn’t mean that in order to succeed you need millions in capital. I have been opening businesses since I was 16 and I can assure you that I failed more times than most people try. But, aside from a couple hundred here and there for a website and business cards, I only ever risked my time and efforts. What I gained was skills, knowledge and most importantly, the gift of humility. I learned that in order to grow and reach my goals, failure is the only option.

Today, I own several successful businesses and am still developing more each day. I have helped dozens of people start and build their dreams from the ground up and obtain financial freedom. Now I show others how to start making moves towards making their dreams a reality.

Conclusion

So, you’re still reading this? I guess you’re either crazy like me... or you’re ready to take the ultimate journey towards entrepreneurship. The biggest question is, where do you start?

Well, I’m glad you asked. I’m gathering some entrepreneurial friends and we are putting together a series of freesources with everything you’ll need to start and grow your own small business.

Follow me on social media @tfostermedia so you never miss any useful tips.