The odds of succeeding with any business are low. However, despite the high failure rate, many people are willing to take the risk of claiming the fame they desire through entrepreneurship.
I can’t blame them. I did the same, and even though I had my lows and highs, it worked out well.
Some of the most common I heard from others were:
- They’re tired of working for someone else
- They’re willing to take a risk for high rewards
- Their side hustle turned into a full-scale business
- They see it as a learning opportunity and not a loss
Career Pivot & Tired Of Working 9-5
It’s a recurring pattern with newer generations. Especially with the accessibility and free tools available, it has become more appealing to start a small business as a possible exit from a traditional career.
Newer generations can learn fast(er), and are led by success stories online or social media. Because of that, some think they’re better suited for entrepreneurship than employment.
Taking Risks For Higher Rewards
If you have high risk tolerance and a knack for problem-solving with a pinch of adventure, the odds are you want to build a business.
Those higher risks can yield much higher rewards than a traditional job.
But there’s the illusion online that entrepreneurship is more of a lifestyle instead of hard work and grit.
Even if there are higher rewards involved, always manage your downside risk and commit with the capital/runway you can afford. And never go without a backup plan.
Betting your life on it can lead to bad decisions.
The key is managing downside risk – starting with minimal capital, testing ideas quickly and cheaply, and having a backup plan. You don’t have to bet everything on one venture.
Know your limits (financially, skill-wise, etc) and realize what you know or don’t know
From Side Hustle To Scalable Business
The dream scenario for many. Starting a simple business aside, that counts as additional income, and led to a full operational business that supersedes your salary (consistently).
It’s also the safest route. Never quit your day job when you make a buck or two.
Ideally, you only consider quitting when you have saved up 12-18 months of runway and have proven that sales have been consistent for at least 6 months.
Side hustles are also a great way to explore your options, with the least commitment of upfront capital.
It’s not uncommon for people to pivot or rekindle other passions through a discovery phase.
It’s A Learning Opportunity, Not A Loss
Most startup founders never get it right the first time. And every attempt, even the failures, can be seen as a success.
You learn:
- New additional skills
- To get a grip on business acumen
- Critical & fractal thinking
- Being more resilient and reacting better to dire situations
You’re always forced to wear multiple hats, and for many, that’s a learning curve as much as it is a challenge.
You “figure it out as you go”, spend your time learning about how to launch, market, and promote your business within your budget or means.
Final Word
People start a business because their instincts say so, to take some calculated risks.
Some people just realize that corporate life is not what they want and are willing to try their luck in business. Others might think that the job market isn’t as solid as before and want to build something in case they’re getting laid off.
I think most of us are looking for opportunities to learn and push the limits of our capacities, even when everyone agrees that the startup failure rate is excessively high.
There’s an opportunity for anyone out there to create something for themselves and find an audience who’s willing to buy it.
The tools, means, and knowledge have become so accessible that with some work, study, and discipline people are willing to gamble on themselves rather than working for others.