6. July 2016–
It seems more than ever people want to have their own companies. But according to Bloomberg, 80% fail within in the first 18 months. While starting your own business is certainly not walk in the park, many simply go into it with the wrong ideas. People want quick money, fame and freedom. But starting a business requires endurance, hard work and reliability on top of a really great idea. Look out for these warning signs that you’re headed to be in the 80%.
5 of the top reasons not to start your own company
If you’re looking for quick money
The tendency in the startup world is to pay attention to the big success stories. New valuations, funding rounds and high salaries are reported on. But at least at the outset ideas require capital – often personal capital – and the hard truth is that many founders will make less than an employee, if they even take a salary at all. There are also unexpected costs and investments! If you want to be an entrepreneur, you should be aware of how much money you will have to put back into the business once you start earning.
If you think you work too much now
It’s tempting to think that if you really hit on the right idea a new company won’t be that much work. But there are thousands of tasks that founders have to do every day that add up to long hours. Many of them will come out of the blue and disrupt what you thought might be a free day.
If you’re looking to get out of the 9-5 grind starting your own thing might not be for you. You might end up with more variety but you’ll need to be thinking about your business around the clock, as well as executing on tasks to get it off the ground.
If you’re looking for media attention
Ah, the glory. Press releases, parties, conferences. The startup world seems to be buzzing. But many successful founders know that media attention is a byproduct, not a sign, of success. There’s lots of competition and press does not always work in your favour.
Working hard quietly should be part of your mandate.
If you don’t work well with others
Contrary to popular belief, the sole founder is a rarity. It is hardly the case that one person has enough expertise, knowledge or time to cover everything a new company needs. Even if you start a company on your own, you will need to rely on people and people will rely on you. If your company grows, you will have employees. Your relationship skills will be put to the test. You will need to start a dialogue between you and your customers.
If you’re not 100 percent passionate about the idea
It’s clear from the first four points that founding your own business will take a lot of time, energy and maybe money. If you aren’t prepared to spend hours upon hours developing, reiterating and showcasing your idea, it’s probably not worth it. Passion will ease the setbacks and keep you recharged. Other people, investors and customers alike, can only get into your idea if you are too.
But remember, there are plenty of reasons to start your own business...
What can be risky and daunting about starting a business can work in your favour. You'll get better at embracing changes. You will learn to think quickly and execute fast. You are responsible for your own success - and that can be seriously empowering.