Considering entrepreneurship just as a career choice would be to think about it in a very narrow and traditional way. It is about time that we realize and understand that entrepreneurship is not just a shift in your career but is a lifestyle which you need to adopt and get adjusted to for an uncertain time period. Hence, any person thinking of turning into an entrepreneur needs to seriously contemplate and weigh all the options before he actually takes the plunge.
Sacrificing your pay check
To begin with, once you decide that you want to go the ‘business’ way, then the first sacrifice or lifestyle adjustment which you may need to make is to forgo your monthly pay checks which used to sincerely credit your bank account balance. This is the first and the most difficult choice which you will have to make.
While some people may be slightly lucky to be able to manage both, job as well as business, for most it is a lifestyle sacrifice which can be quite bitter. One of the natural consequences of this will be that you will have to rely on angel investors or on some crowd-funding opportunities or some loan or advances from bank and such other financial institution etc. At times, you may also have to shell out hard cash from all the savings which you have done till date. This may result in your bank balance going nil and hence you need to be prepared for all this.
Beware of who you pick
While finance is a crucial factor to consider in any business, it is however, not the only factor you need to take into account. Standing next in line is the human resource factor. When you start off your venture, there are so many things to take care of that we need some strong personnel who can take charge of certain matters in running the business.
However, while picking up people you need to be careful about the people you chose. They have to be reliable else they can dupe you. So this is one more such area where you will need to pay special attention and exercise caution. Apart from this, at every stage of running a business, you will face innumerable situations where you will have to undertake risks which may succeed at times or at times will end in failures.
Some real life examples
In order to get a deep insight into what risks entrepreneurs usually face, it will be noteworthy to quote some of the risks which the successful entrepreneurs of today took and which helped them achieve the position which they have achieved today.
Mr. Elon Musk, co-founder of Tesla Motors and Paypal, who also founded SpaceX, undertook the biggest risk of his life by using all the funds which he received from selling his stakes in Paypal in order to start SpaceX. SpaceX subsequently won a $1.6 billion contract from NASA for re-supplying the International Space Station.
Mr. Mark Pincus, founder and CEO of Zynga, an online social gaming company (creators of games like Farmville and Mafia Wars) took the biggest risk by rejecting the funding offered by Freeloader (Company). This resulted in Mark sustaining only on one month of cash. Few months down the line the Company received funding from some other company and that too for a good return.
Hence it is quite clear that entrepreneurship is a 360 degree transformation of your life and hence, you will be accountable for every small little action you take, every single penny you spend. Hence, be very careful when you decide to become an entrepreneur because it is a life changing experience.