The Not so Glitz and Glam Side of an Entrepreneur
Author: Gloria Mopotu
Back in the day, going to university with the hopes of working for your dream company was the norm. Students aspired to work for some of the top business firms in the world but nowadays millennials are taking a different route and seeking to become their own bosses. Two main reasons, in particular, has sparked this sudden change in millennials and the first reason is the TV. Recent entrepreneurial reality shows that have graced our tv scenes have bought a new meaning to the word entrepreneur. The way that entrepreneurs expose their extravagant lifestyles and boss-like behaviour to employees, gives young people the urge to deviate from pursuing careers in business and rather becoming entrepreneurs. The second reason is high profile entrepreneurs that we know around the world and in our very own communities. Young people today believe that most entrepreneurs are rich and successful by doing what they love to do they way they want to do it.
On the surface, the lives of successful entrepreneurs may be motivating and aspiring to some, but getting to the top is a lot of hard parts and to be honest, not everyone is cut to be the ruler of their own empire.
Here are some examples of why you should think twice before pursuing a career as an entrepreneur:
1. Share a percentage of your business with investors?
It is no secret that every person looking to start their own business needs some kind of funding to grow their business. Some people are lucky to get this funding from friends and family but that is not always the case for others and this is where venture funding comes in. For entrepreneurs who have startups, venture funders are always on the lookout for startups that will work towards their financial advantage. But the downfall of it all is that when an investor invests in your business, it’s no longer your business alone. A percentage/s of your business has to be shared with those that have invested money into your business. Now this is always a bad thing depending on the equity that the investor is seeking. Funding is very important for startups but do your homework. Make sure that the financial deal is fair and both parties win in the end. Avoid being bought out of your own business.
2. Business uncertainty
Tomorrow is not guaranteed and neither is the success of your startup so prepare for the good and the bad. The business world is a world of uncertainty, especially for entrepreneurs with the pressures that come from self-doubt which, can sometimes be unbearable but also necessary to keep you level-headed. Even though entrepreneurs can be uncertain about the business environment, one thing is they can be sure about is their idea. This will allow you to motivate yourself and work hard to achieve the goals you had set out for your business.
3. Tight/Limited Budget
There is nothing worse than having to market your startup on a limited budget as this limits your creativity. With a limited budget, an entrepreneur is unable to fully bring ideas into the light and this could hinder the success of your business greatly. That is why it is important for entrepreneurs to find constructive ways to market your innovation on a limited budget, which is not always easy and successful, unfortunately. A few ways to achieve this is through networking, creating awareness for your business and developing social media strategies that will make people take notice of your business and invite potential investors.
4. Potential Failure
When it comes to starting your own business, failure is inevitable. Therefore entrepreneurs need to always prepare for the worse. One mistake that some entrepreneurs make is to invest all of their saving into their business and forget to save for the future. This could be detrimental to you and your business should it not succeed. Believe in your idea and go out of your way to market your business. In the event that it fails, learn how to cope with it and move on.
5. Struggle with finding investors
The struggle to find potential investment is an entrepreneur’s worse nightmare. Trying to prove to investors that your idea has the potential to succeed is not always easy to make sure your everything is done correctly. Every entrepreneur wants to win, and sometimes the idea of your business may be brilliant but the pitch also has to be just as brilliant. It’s that opportunity you have to convince an investor what makes your idea different and how they will benefit by investing in your business.