When you think about entrepreneurship, you imagine how amazing it would be to become wealthy due to the opportunities you get as an entrepreneur. You have dreams about making a lot of money, having a flexible schedule and enjoying pleasures that the average person will never get the chance to experience. But for all these great things that can occur, there is the brutal reality of entrepreneurship that most people ignore.
Entrepreneurship is a daunting lifestyle. Not every entrepreneur is successful. The successful entrepreneurs you see on television and on your favorite publications represent a small percentage of entrepreneurs who make it big – majority fail.
You may be trying to decide if it is worth the effort to start your own business. You will have to be willing to suffer in the short-term if you want to build long-term prosperity. Be ready for these psychological burdens that entrepreneurs have to deal with:
1. Being accountable
As an entrepreneur, you are the person who has sole responsibility for the success or failure of your business. Even if you have a team, the accountability that lies with them is minimal compared to the weight that lies on your shoulder. As the leader of your organization, you are the individual who has the final word on most decisions, and you are the one who will be most affected by the outcomes of those decisions. This can be difficult for a person who is easily rattled, to deal with. If you are the type of person to point your finger at others instead of taking responsibility, then entrepreneurship is not for you.
You will also be expected to make many decisions and some of these decisions can cause your business to either sink or swim. Some individuals cannot process decisions logically and end up freezing in the moment or making emotional decisions. Decision-making can also increase your levels of stress, and increased stress can lead to poor decision making, which gets you caught in a relentless cycle. Cultivate a stronger mental mindframe if you want to succeed in being accountable for both your actions and the actions of your team.
2. Financial stress and uncertainty
Never base your startup off of the success of someone else’s business. Some businesses are able to develop quickly with little to no investment. There are also the businesses that have millions of dollars in the capital before they are able to become operational. The Small Business Administration (SBA) estimates that the average small business requires at least $30,000 to open its doors for business. This a pretty hefty price tag for an entrepreneur and would likely require you to spend your savings or take on large amounts of personal debt.
Therein comes the decision of quitting your job or operating a part-time business. Choosing to operate a part-time business would mean you are still able to earn a steady paycheck while building your business. However, since you only get a few hours to spend on your business each day, growth can be slow. On the other hand, the problem with being a full-time entrepreneur is that your business might take time to generate revenue. This puts you in a precarious position. You will most likely be forced to survive at least a few months without any income.
Another problem that you will have to deal with is if you take money from family or friends. They will likely have the expectation that you will return the money borrowed, which can put a great deal of pressure on your shoulders when your business is not doing as well as predicted. Learn how to create manageable expectations not only for yourself but also for the people who invest in your business.
Read more about 5 Mental Stresses of Entrepreneurship at Rikvin.com.