To be a small business entrepreneur is possibly one of the toughest things that a young person can be. Business entrepreneurship is the art of finding a business opportunity and to start business, finding the resources by attracting business investors to the cause, finding the right business partners, taking great risks, working non-stop and without sleep for months, even years, bringing out the best from employees, handling great stress and work related tension – all in search of over sized profits some time in the future. Often, this could be a thankless task, with failure as the only certainty.
Only a tiny percentage of young entrepreneurs really achieve all their goals and succeed. The failure rate for small entrepreneurs is quite high. Yet – the sense of achievement and pure joy that young entrepreneurs get after their business turns profitable, is more than worth the trouble, the pain and the hardship.
In this article, we discuss both the risks and benefits of small business entrepreneurship, to give you a good idea of what you’re in for if you decide all of a sudden that to be a successful small entrepreneur is the biggest goal of your life.
Small Business Entrepreneurship: The Risks
No Assured Paycheck: If you are an executive in a big company, you may hate your work, but at least, at the end of each month, you’re assured of a paycheck. There is no such luxury for an entrepreneur. This is particularly true when you’ve just got started. You never know when your next paycheck is coming from. As long as a small entrepreneurship doesn’t make a profit, a young entrepreneur doesn’t make any money. Many small entrepreneurs give up because of this, and go back to their old jobs, and feel resentful about their failure for the rest of their lives.
No Steady Income: A small business entrepreneurship can never be assured of a steady income. There are months when a business may make tremendous profits. And there are other months when, forget profits, there are actually losses. Sometimes the losses are for no fault of the young entrepreneur – it could be because a customer missed out on a big payment. That is why when you have a business in entrepreneurship, you should have at least six months worth business expenses held in reserve for an emergency.
No Job Security – You may be used to the compulsory retirement savings account backed by your employer when you worked in the past at a big company. However, as a young entrepreneur, you have to provide for your own insurance and retirement security. So it’s very important that you do some really well thought out financial planning for your future, even as you work hard at your small entrepreneurship.
Small Business Enterpreneurship: The Benefits
You love your work – As a young entrepreneur, you only work on things that you care about, what you’re passionate about, things that make you happy. When your passion and work are interrelated, you are likely to do far better in your business as well. You are likely to get up in the morning and look forward to every new day with a spring in your steps.
You are your own boss – No longer do you have a higher manager to report to. It is possible that your experience with your bosses of the past haven’t been good. But as a young entrepreneur, you are your own bosses, and you may have a few people who report to you. You will probably love the sense of responsibility that comes with it.
Keep your own hours – Young entrepreneurs work in their own time. They work hard, terribly hard, but in their own time. This is another great advantage of being a small entrepreneur.
Work from a beach or from home – As a young entrepreneur, you’re at the crest of the Internet era. Because of high broadband speeds, processing power and new things like cloud computing, you can work anywhere you want to. You can manage business entrepreneurship while on a holiday in Spain, see what your business partners or employees are up to through the power of the internet, and collaborate with them by using the highly affordable collaboration software.
If you’re thinking of taking the plunge finally and following your passions by turning to entrepreneurship? Now, nobody could possibly predict whether your small entrepreneurship goes on to be the next Google or sinks without a trace. But we assure you one thing though – you are in for the ride of your life!