Entrepreneurship is frequently portrayed as exciting, amusing or even lavish (especially after a company has become successful), but the truth is, there’s a dark side to entrepreneurship that isn’t frequently publicized.
Many of you already run successful small and mid-sized businesses. If you fit into that category, make sure you know what financing options are available in this article.
Most entrepreneurs in the public eye are ones who have become very successful, while the majority of business owners endure a silent struggle — whether they’re making a consistent profit or not.
It’s rewarding to start and manage your own business even if you fail, but before you take the plunge, be ready for these psychological burdens that entrepreneurs have to bear:
Everything that goes wrong is going to be your fault — or at least, that’s how it’s going to seem. As the leader of your organization, you’re the one making the final call on most decisions, and you’re the one who will be most affected (whether positively or negatively) by those decisions’ outcomes. Making too many decisions can increase your levels of stress, and increased stress can lead to poor decision making, so you may get caught in a relentless cycle of stress and decisions, a study by the National Institute of Occupational Safety and Health reported.
2. Financial stress and uncertainty
There’s no such thing as a “typical” startup; some of these businesses are able to get off the ground with almost no investment, while others spend millions of dollars before they go live. Still, the Small Business Administration estimates that the average startup requires at least $30,000 to get going, and if you’re the entrepreneur starting the business, you may have to dip into your savings or accumulate debt you’re personally liable for.
On top of that, you’ll probably have to quit your day job to commit full-time to your new business, and it’s unlikely that you’ll generate revenue right away. You’ll need to survive at least a few months without any income. And you’ll have to do this based on a business plan you’re only marginally confident will eventually yield produce a steady stream of revenue
If you have made up your mind that entrepreneurship is the route you want to go, one option is to build your own spirit business. It is not inexpensive as you will essentially be paying another facility to distill the spirits, but it is much less expensive than building a team and facility yourself.
So how do you make your business grow
Being your own boss has become something of the new American dream. But it’s incredibly challenging to be an entrepreneur. Of the 500,000 some new businesses launched per month in the U.S., an estimated half will fail within five years, according to the U.S. Bureau of Labor Statistics. At the same time, entrepreneurship plays a vital role in the growth of the U.S. economy. Which means: Small business ownership can be daunting, but it’s also critical.
The million-dollar questions, of course: What does it take to launch a business? Who succeeds, and who doesn’t? Many look to entrepreneurial spirit as the make or break factor, a way of thinking that often sets apart those who want to run their own businesses and those who do. And yet the jury is out on whether entrepreneurial spirit is inherent—you’re either born with it or you aren’t—or can be learned and cultivated.
Earlier this year, my son launched a menswear line. He had a simple idea, born out of personal need (as the best ideas often are): to create the perfect button-down shirt. That idea expanded into t-shirts, denim, a jacket—the perfect men’s uniform that was well-made, stylish, and wearable. He had his work cut out for him, certainly: For one thing, clothing is a crowded market. He took the time to research the concept and the best methods of execution. He considered his partners carefully. He sought to make it, as many entrepreneurs do, on his own. That his father is very well established in retail could have been a help, or it could have been a hindrance. People might pay more attention. They’d be looking to him to succeed. They’d also be looking to him to fail. In many ways, this is the same challenge all new business owners must face: putting yourself, your name, your ideas on the line for others to judge. And judge they will.
Through my son’s launch of Alex Mill—which so far has proven successful—I’ve witnessed the many challenges of starting a new business. It’s not just about having a vision and the means to execute it—indeed, some entrepreneurs have but one or the other. It’s also about having a true entrepreneurial spirit to fill in the gaps when something inevitably goes wrong. What Alex set out to do was perhaps influenced by his father’s work, as many children’s career aspirations often are, but was very much his own. He had vision, conviction, drive—something that family connections can encourage but can’t replicate.