The last thing an entrepreneur needs is to start a business before he or she understands what it is like to own a business. Most people have a rosy picture of owning a business. Don’t be cheated; this is what entrepreneurs endure.
On average, business owners work over 60 hours a week
It is hard work to manage a business. Ambiguous situations are all over the workplace, and the owner has to take responsibility for untangling things. It requires time and expertise to do things right. If something goes wrong in the middle of the night, the boss has to wake up.
There is legal work, accounting, human resource, product development, customer service, and many other things that require coordination. Delegating everything is impossible. It takes time to delegate. It also takes time to assemble a team that will be delegated tasks.
On average, it takes a business 3-5 years to break even
The allure of getting rich quick is not very truthful. There are business people who get successful very fast. When starting a business, a business plan is the first revelation. The entrepreneur has to figure out all liquidity concerns. It also brings the founders down to earth. Some investors will take years before they can draw a salary.
Half of the failed businesses are down to incompetence
Most people think they are ready for the challenge. It turns out that most people are not. It takes a lot of learning, correction of mistakes, mentorship, role modeling, and a great deal of work to be successful. Missing any of these key ingredients is a sure way of failing. Today’s businesses thrive on what they learn. A feedback loop for the product, service and internal systems is imperative.
Over half of the businesses start in garages and basements
A great office overlooking the pool will not come instantly. Business people often have to do business in awkward places. They have to endure dust and allergies in basements to make it. Things will not be rosy at first. In the future, they can improve though.
Before you start this journey, be prepared with these hard truths. It takes several years and a great deal of sacrifice to be successful.