There are many reasons to start a business, but not everyone is considered an entrepreneur. The term “entrepreneur” comes from the French word meaning “to act on one’s initiative.” At its core, entrepreneurship is about taking risks and following your path with no guarantee of success. It’s risky work that requires singular focus and determination. Not everyone has what it takes to turn their idea into a viable company. If you’re considering starting your own business, it’s worth asking yourself the following questions: Am I willing to take financial risks? Do I have thick skin? Can I handle rejection? Are my relationships stable enough to commit large chunks of time to my company without complaint?
Paul Haarman says, if the answer to any of these questions is no, entrepreneurship may not be for you. If that’s the case, it’s probably best to move on and seek other ways to make money. Otherwise, you could end up with a failed business under your belt. Being an entrepreneur can be gratifying, but overall, it usually isn’t worth the sacrifice required of the individual.
Here are some statistics compiled by the Bureau of Labor Statistics (BLS) to consider:
– 4 out of 10 new businesses fail within their first year.
– Within five years, half of all new businesses will have failed.
– After ten years, only a quarter of companies will remain in business with any significant success.
These numbers show that most small business owners do not have long-term success, which means being an entrepreneur is riskier than being employed full-time. For this reason, it’s essential to ask yourself if you’re willing to risk your financial future on your company before diving into entrepreneurship head first. If you are still eager to be your boss despite these risks, there are several qualities successful entrepreneurs share.
– Successful entrepreneurs are usually determined, persistent individuals who are willing to take risks.
– They know how to pitch their business ideas and convince others that the opportunity is worth pursuing.
– They are self-starters who can handle rejection without allowing it to keep them from moving forward with their goals.
– Entrepreneurs also can manage risk effectively, so they mitigate potential losses as much as possible. This means entrepreneurs must understand financial statements, tax laws, and hiring laws to run a successful company successfully.
If you possess these qualities but still aren’t sure about entrepreneurship, other options are available for making money outside of launching your business venture. You should first set up an emergency fund that can cover your living expenses for at least six months.
As per Paul Haarman, most people don’t have savings to handle a vast sudden payment, such as a house fire or a car accident. With an emergency fund, you won’t need to resort to borrowing from friends and family if you lose your income unexpectedly. Having this financial security will also give you peace of mind, so you can focus on other aspects of creating a business without worrying about whether or not you’ll be able to pay the bills in the short term.
