Now that you have decided to become an entrepreneur, go ahead and pat yourself on the back. However, you might want to learn how to avoid the highway to business hell sooner rather than later.
When it comes to starting a new business, most focus on how they will win and achieve the GreatAmerican Dream, but success isn’t something most new businesses experience.
“The painful truth is that the majority of first-time entrepreneurs who launch a business fail early and often,” says Rod Robertson, an international consultant and author of “Winning at Entrepreneurship: Insiders’ Tips on Buying, Building and Selling Your Own Business.”
Be be aware that acting bold isn’t always the main key to success, he says, but you can get so lost if you ignore danger signs or don’t plan accordingly.
“It’s amazing how many people plow their life savings, sacrifice the well-being of their families and risk their physical health in a business endeavor that is doomed from the outset,” Robertson says.
Entrepreneurs and new business owners might be able to improve their odds, by staying clear of a handful of common mistakes that tend to plague those who seek to buy or start their own businesses.
- Starting a business for the wrong reasons. Many are drawn to entrepreneurship because they envision the image of someone who is rich, famous and smart. “That’s not exactly the best motivation, and the image they have in mind isn’t going to mean a lot when the reality of what it takes to succeed sinks in,” Robertson says.
- Avoid taking advice from the wrong sources. Anyone kicking off a new business or buying an existing business or franchise always needs advice. But that advice should come from qualified people as opposed to friends and family members. “Entrepreneurs need to make sure they have wise and learned people weighing in on each component of their business,” Robertson says. “But it needs to be the right people.”
- Underestimating time requirements. Many potential entrepreneurs typically assume they will work long hours. “They are wrong,” Robertson says. “They won’t work long hours. They will work long, long, long hours. Outside of an act of God or just blind good fortune, business owners work more hours than any other category of employment.” That can take a toll. The good news is, as the boss, you can come and go as you please, so he also recommends setting aside time for exercise. This will help keep you stay fit and relieve some of the stress that is especially high in the early months of business ownership.”
These are a few possible traps that might befall the new entrepreneur, but they aren’t impossible to overcome with the correct preparation, advice, and research.
Another way to make the entrepreneurial experience more rewarding – and perhaps a lot more stress-free is to choose a business or area that you truly like.
“This may be your once-in-a-lifetime shot at buying or starting a business, so try to match it to something that truly interests you. Many business buyers plunge into new fields where they don’t know the benchmarks and find out too late they are in the wrong arena. Play to your strengths. If you already have some background knowledge – either because of work experience or because the field just always fascinated you – you will be ahead of the game.”