There are many reasons to enter the world of entrepreneurship, but the one that seems to draw the most newcomers is the prospect of “getting rich.”
Some studies illustrate how entrepreneurs, over the course of their careers, tend to live happier lives and make more money doing so. And occasional stories of breakout entrepreneurs selling their businesses for millions of dollars naturally pique everyone’s interest.
No wonder why so many people strive to own their own businesses for a shot at that big bank account. But it’s unlikely that merely owning a business is going to earn you the riches you seek. Here’s why:
1. Most businesses fail.
It’s hard to come up with good business ideas, and as various sources have attested, 90 percent of startups fail. Not only do you need to come up with an idea that’s original, appealing and potentially profitable, you also have to get the timing right.
2. Get-rich-quick stories are rare and often exaggerated.
There’s something else at play here in those entrepreneurial “rock stars” who skyrocket to success: Media outlets like to play up those stories. That’s how these entrepreneurs become the poster children for business ownership, and lull many inexperienced entrepreneurs into thinking that overnight successes and instant riches are not just possible, but likely.
3. Running a business is expensive.
Don’t forget, too, that running a business is more than just collecting revenue: You also have to pay for everything that happens behind the scenes, including many unforeseen expenses.
4. There are always unseen variables.
No matter how carefully you make your decisions or plan the course of your business, there are always unseen and unpredictable variables affecting how your business plays out. A new competitor might come out of nowhere to threaten you. A new technology might transform the way people think about your product.
5. High profitability alone won’t make — or keep — you rich.
This is an important lesson you might forget in the excitement of becoming an entrepreneur: You still need personal finance skills if you’re going to become or stay rich. Your business might become profitable, earning you hundreds of thousands of dollars a year in recurring salary, but if you blow
6. Most wealth is accumulated from multiple sources.
This is another important financial lesson to bear in mind. Even though many entrepreneurs have accumulated a chunk of their wealth through business endeavors, most personal riches are gathered from multiple sources of income.
Entrepreneurship isn’t always pleasant. In fact, sometimes it’s downright miserable. Not only will your first business probably fail to make you rich, it might even leave you in financial ruin. Still, if you have an exceptional idea, the willingness to keep growing, and adapting no matter what’s thrown at you, eventually you’ll find a route to higher revenue.
That great idea of yours may not make you a billionaire, but it should at least earn you a good living and provide you the satisfaction that comes with being a creator and leader.
Raj Isaac Abraham
Entrepreneur
https://www.facebook.com/Raj-Isaac-Abraham-765159050257036/
No comments:
Post a Comment