What is one of the biggest fear for young entrepreneurs? The fear of failure.
“There is only one thing that makes a dream impossible to achieve the fear of failure.” – Paulo Coelho.
Many young entrepreneurs access to this entrepreneur world without realizing the meaning, the responsibilities or even the risks of being an entrepreneur.
Let’s start with something basic: The meaning of entrepreneurship.
What does entrepreneurship mean?
Let’s take the dictionary for a while. Based on dictionary.com:
Entrepreneur: a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.
From my personal definition, it means going away from your comfort area of having a fixed salary every month, being responsible for the success or fails of your own company and the bigger impact of your fails compared with being an employee. After all, for the pros and cons is your own company.
One of the biggest fear for young or inexperienced Entrepreneurs is to FAIL
For that reason, it is very common “to want to assure each step that is taken to try to minimize the risk of falling and failure.
Every successful person knows the following: “The fail is part of the game”. It includes also this statement to successful actors, athletes, influencers, singers, etc
Meanwhile, you are afraid to fail, your competitor will be there without this fear and getting your own market and customers instead of you.
This common situation happens caused by the lack of awareness of entrepreneurs risks and rewards.
How does it look at the Entrepreneurs Risk VS Rewards?
“When you take risks you learn that there will be times when you succeed and there will be times when you fail, and both are equally important.” – Ellen DeGeneres
You should be aware of these TOP 10 Entrepreneur Risks:
- The risks are unavoidable.
- You are going to be away from your comfort or safe area.
- The ups and downs are part of this.
- There isn’t a “safety net” anymore.
- Investment without direct benefits is necessary. It means it does not work in a linear way. Example: I invest 100 $ and automatically I get 120 $.
- The investments may be back in years, so the patience and a proper business plan are necessary.
- All risks involve losing part of the control.
- You are taking risks every day in your life even if you don’t realize about this. But these ones you will double check all the time.
For every failure, you will learn a new lesson to make you stronger. “You don’t learn to walk by following rules. You learn by doing, and by falling over.” – Richard Branson.
- Enjoy “the ride”. I add this one as personal advice, if you fail you will try again. If you live the entrepreneurship as constant stress, boring or sadness. Then you should consider trying something different.
Now if we speak about rewards, I also made my personal list.
TOP 10 Entrepreneur Rewards.
- All end-decisions are up to you.
- There are no boundaries to learn new things.
- The time management is up and suitable for you. I would like to clarify at this point that nowadays, more and more startups offer this for their own employees. Still is not 100% extended.
- You can create your own company culture and rules.
- Your incomes are directly proportional to your success.
- All wins will get extra excitement and joy compared with being an employee.
- Your network contacts will grow very fast. Everybody would like to speak with the CEO of the company and you will need as well for promoting your company.
- You believe in everything and all the decisions you make.
- The team is created by you without boundaries. Beside this, you have the freedom to improve your soft skills and emotional intelligence without the pressure of any boss or policies over you when you are leading your own team.
- If one day you sell your own company or this is acquired by another company, it will pay back all the efforts x10.
Many new entrepreneurs give up by this lack of awareness and rewards.
What responsibilities does an entrepreneur take?
As a CEO, you are responsible for your own team, sales, finance, and marketing.
This means that for the pros and cons, you are the main responsible for leading the company, its culture, people and results.
It is also important to mention, not confusing responsibility and leadership with the wish to have everything under control through micromanagement.
In the next section, I explain the main mistakes in leadership, marketing and sales, and finance. I exclude the legal part, due to lack of experience or knowledge and to be a less common error.
What are the most common mistakes about responsibilities as an entrepreneur?
From my personal experience there are 3 mistakes to be considered as the most important ones.
- Leadership. The most common mistakes regarding this issue are:
– Lack of confidence or trust with your own employees.
– Try to have everything under control by micromanagement.
– Not listening to your own employees their feedback or prioritize your knowledge against expert people in a certain specialization.
- Marketing. Lack of spending because is too expensive or risky. Actually, from my point of view, this is more about choosing which risks are worth, which risks are “mandatory” and which are recommendable. For example, let’s imagine you are a tech vendor and your target are SMBs companies:
– Mandatory investment: Google ads and SEO. In this way, the customers will find you by SEO (google most probably).
– Worth investment: Choose some specific events related to your core business. For example, if your core business is a Backup Solution, then you should consider the one focused on data and systems solutions.
– Recommendable investment: Press Releases in an IT Magazine.
- Finance. This is related to the previous one about trying to save as much money as possible. In business, is necessary to set up short, medium and long terms. If you are thinking only in short terms and not in the long term. Then you are doomed to fail in a medium or long term. For example, let’s imagine the same example as before. You are a tech vendor and your target are SMBs companies:
– Short term: You need to invest your time and money in selling as fast as possible. For this purpose, the first priority is having a web site working and configured in order to start a google ads campaign.
– Medium term: Investing in building your own sale and support team by hiring new people.
– Long term: Investing in building your brand awareness and recognized in the market by global events or be recognized by prestigious consultors.
My Tips and Conclusions
- Failure is part of entrepreneurship, life, and constant learning.
- It is necessary to be aware of the risks and pros of entrepreneurship.
- Does it fit with you being an entrepreneur? After checking the list of pros and cons, you should ask yourself if the entrepreneurship fits with you and your goals. There is nothing pre-determined and depends on whether the pros compensates against the cons.
- Freelancer can fit more with you if you are not willing to take seriously the responsibilities of being an entrepreneur.
- To be a good leader, you need to build trust.
- Risks and investment are inevitable and do not guarantee 100% success. When the investment works, your investments will multiply.
What do you think about these issues?
Have you ever experienced any of the issues mentioned in this article?
If you liked the post, don’t hesitate to share this or write your opinion in the comments below.
Javier Nieto León