The seven dangers of entrepreneurship

If you’ve been out of a job for a while, or you’re just tired of the job you’ve been doing for years, you may be thinking about starting a business. If so, get ready to begin an exciting, rarely boring, and often harrowing journey.

Calling it “dangerous” may be overstating, since dangerous is defined as “dangerous.” However, “danger” means “exposure to risk or harm,” and starting a business can certainly be risky and definitely challenging.

Since writing the challenges seems to make them easier, let’s take a look at the obstacles you’re about to face.

1. Poor time management

This is one of those issues that creates problems for many of us starting new businesses. Either you spend all your time working or you can’t keep to a schedule.

Many businesses fail within the first year because the owner failed to control labor time vs. labor time. “rest of life” time. Rule number one: You can’t spend every minute of your life on your business. You still need to have a life. Otherwise, you will burn yourself.

2. Organizational skills

If you have them, you just passed a big hurdle. Being disorganized not only means wasting time looking for something, it also makes it difficult to concentrate. Which leads to danger number 3.

3. Focus (or rather “lack of”)

One of my friends decided to close his business and focus on consulting. It seemed like a good idea. He knew his field and had a lot of practical experience. He also had a fully equipped home office and had no children or wives around to distract him.

Unfortunately, the idea was better than the company. Because? He couldn’t concentrate without the structure of an office environment. Working at home seemed like some kind of part-time job. Instead of being at his desk every morning at a certain time, he would find other things to do. Lunch hours often turned into an afternoon off. It was a “sort of” business, not a serious one.

4. Fear of failure

Failure and entrepreneurship go hand in hand. If you’re not fully aware that your business could fail, or if you’re terrified of failing, go work for someone else. Because if you’re not willing to take risks, you shouldn’t be in business for yourself.

Risk means stretching, taking chances, trying new tactics, making mistakes, and learning to overcome them.

Read a bit about successful entrepreneurs. You’ll find that most have had failures along the way, either companies that didn’t succeed or ideas that failed. It didn’t stop them from starting over. Call it common sense.

5. Lack of marketing

Most startups simply don’t have huge marketing budgets. However, that is no excuse for not marketing. Because if you’re not putting your name out there, someone else will… just their name, not yours.

There are a plethora of low-cost marketing tools out there. Networking is my A#1 favorite for new (and old) businesses. The cost is minimal. Your investment is in time. Find something.

Join networking groups, chambers of commerce, or industry organizations. Attend events where you will meet new people. Create a thirty second “elevator speech” about your company (focus on benefits). Carry your business cards with you, always! Talk to people when you’re out. I have resumed business chatting with people at social events. You never know who might be a potential customer…or who might know someone who might.

Other profitable marketing tools include direct mail (very targeted), direct email, ezines, a website (replaces a printed brochure), and public relations. It is not necessary to have an advertising campaign. We have to do something!

6. Not keeping up with your game

Technology has radically changed the way we do business. The information is immediately disseminated over the Internet. You have to be able to make decisions quickly. The same technology that makes our lives easier also requires us to work harder.

So stay up to date on what’s happening in your particular industry. Find some industry leaders and read their newsletters and books.

7. Forgetting to have fun

Dangers aside, as an entrepreneur, you control your destiny. You are not at the mercy of a company cutting staff and eliminating your work. And if you lose an account here or there (it happens), you can go out and get more. You can be as busy as you want.

So enjoy what you’re doing. Get up in the morning knowing that you are (hopefully) doing what makes you happy. And have fun.

Copyright © 2004 Rickey Gold and Associates