Becoming an Entrepreneur gives you the attraction of being your own boss, of setting your own rules and reaping the benefits, can be seductive. Of course, the reality is that a large percentage of new businesses fail within a few years (20 percent in the first year, according to the Bureau of Labor Statistics, and just under 92 percent overall, according to a 2019 Startup Genome report).
As an entrepreneur, I know how it feels to go out on your own, full of zeal, only to return to square one in a matter of weeks, and far too many new firms achieve only a sliver of success before the wheels come off.
I became a millionaire twice, then lost everything before eventually discovering the answers. Now I can live the life I’ve always wanted without worrying about losing it all.
Failure to communicate is a crucial task that stymies many fledgling entrepreneurs. Certainly with others, but primarily with oneself. You’re going into a Faustian deal if you don’t do your homework, dive deep into the genuine payoff of being and entrepreneur and boss, and figure out what’s fueling the urge.
On a recent edition of my podcast, Beyond Success, my good buddy Adam Daines of the global strategic consulting firm ADDA Infusion made an excellent argument. He stated he knew someone who resigned his day job and went into business for himself solely to “break free from the nine-to-five.” I believe we can all relate to it, especially those of us who have been trapped behind a desk, staring at the wall clock and wishing it would tick quicker. The issue is that this sentiment is insufficient. Adam’s friend, who had gone out on his own, was discovering that he had even less time for his family than previously because he was working all of God’s appointed hours just to keep clients happy. He gained his wish: he was no longer bound by the nine-to-five, but he hadn’t anticipated the cost.
So, here are three questions you should ask yourself before diving in to become an entrepreneur.
1. How will this help me become the person I want to be?
It always amazes me how little consideration people give to this. Many people are fixated on “more money, more time, more freedom,” and fail to consider why they want these things. My advise is to think about who you want to be for a minute. Consider how you’d like to be on an average day (since that’s where you’ll be spending the most of your life); perhaps you’d like to be less worried, more patient, and more giving?
It’s possible that you wish to be more carefree about money, whether that means buying stuff without looking at the price tag or letting your spouse drive your “pride & joy” without thinking about what would happen to it.
Whatever your aim, be honest with yourself, and then visualize what life would be like on a daily basis when you have those things. Not as one-offs, but on a daily basis. Do you have a sense of it? What emotions do you have when you think about living like that? That is who you actually want to be.
2. Will I be content if I don’t work in the industry?
Another major cause of failure for new business owners is being caught up in the day-to-day operations of the company, leaving no time to work on it. From the outside, this may appear apparent, but if you’ve built a firm based on your passion, would you be able to delegate the task to someone else? After all, you’re the business’s owner, which means you’re responsible for running and expanding the company full-time. Hire someone with experience to expand it for you as an alternative, but they won’t be cheap if they’re any good, and you’ll have to spend time getting them up to speed on the structure and goals.
So, unless you have a lot of money, you should figure out what you really need to perform in terms of day-to-day operations.
3. Will I be able to persevere in the face of adversity?
Again, this may seem self-evident, but understanding that you have the stamina to persevere through terrible times is not common information. So, go ahead and do the internal work. Ask yourself tough questions and attempt to envisage the worst-case scenarios before returning to your “why.”
The goal isn’t to scare you, deter you, or cause worry; instead, it’s to discover any points of resistance you may have, understand how they affect you, and then compare them to what originally motivated you. You can move mountains if you have a strong enough “why.” You’ll know with near certainty that you can push through to a desired end point if you’re pre-armed with that knowledge, even if you don’t have the experience to back it up.
(As a bonus tip) Find a mentor !
Finding a mentor is one of the best methods to save years (in some situations) of lost time spent in trial and error. Someone who can mentor you, offer guidance, and hold you accountable. This individual is priceless.
Begin by observing the people you admire. Some of the game’s most well-known and high-level characters may not be suitable personal mentors. Tony Robbins, for example, is unlikely to have the time or inclination to work with you one-on-one (and even if he did, you’re unlikely to be able to afford him), but he produces podcasts, so start there. They’re also free, so you’re only putting your time at risk. Then, look at people in the field you wish to enter; who is making significant progress and making the kinds of movements you want to make? They may not be the most well-known in terms of public image, but with a little research, they can turn up some surprises.