A recent article in Forbes discusses entrepreneurship as a competitor to the ongoing labor shortage (https://www.forbes.com/sites/elainepofeldt/2021/08/31/is-this-the-real-competition-in-the-labor-shortage/?sh=35d407987c8f). With the increasing acceptability of remote work, it seems like more corporate people have the flexibility to explore options of doing something on their own. This ‘something’ could be freelancing, investing in a franchise, starting a new business from scratch, or even buying a business. For many that have spent decade in corporate life, and are jaded with the daily grind and politics, the idea of having your own venture seems romantic and exciting. As someone who has spent 25+ years in corporate, while also investing in and running different side business, I can say without question that starting and running a business is fulfilling. But it will probably also be the hardest thing you have ever done. And it is certainly not for everyone. Here are 5 reasons that one should not look to invest any time and effort in this direction :
1) Like your title too much : For the corporate VP, director, manager or any fancy title you may have, lets get this elephant out of the room first. The day you start your business, you can set aside any of the fancy social perks that came with your current Linkedin job profile. If your identity and social status stems from your title, and you feel incomplete without it, then stop right here. Stick to the corporate path, find other ways to find fulfillment. You may have had quite the high flying career, but the business you invest in could be as blue-collar as it gets. For those who have read the book “The Millionaire Next Door”, there is excellent data on which small businesses succeed over the long term, and many of them are in the blue collar trades. Regardless of what business you decide on, do you have the mindset to assess a business for its true potential, and disregard “what people might say” when you start off? Are you ready to knock on not-so-welcoming doors to drive sales, and sweep the floors of your shop on Day 1? If not, then don’t even think of venturing out on your own. Job status is not a small business owners’ friend (but asset and wealth building certainly will be, if you do things right).
2) Busy with other things right now : You have an exciting business idea, BUT are tied up this year with your kid’s college admissions. And then, you may want to wait a bit longer since you have invested in a big house renovation. A few months later, you get back to researching your business idea further and are still gung-ho about it…but unfortunately you are committed to this big family reunion later in the year. If this sounds remotely like you, then look elsewhere. You have not done anything to act towards your entrepreneurial journey and probably never will. There is a big difference between making fancy business plans, and writing out that first big check towards a major capital investment..it is stomach churning when you actually take that first step (but you will get over it). You need a burning desire for action in order to make that first jump. The biggest step is diving in. From that point on, you somehow learn to swim as you go
3) Have limited time flexibility : What is your current work day like? Are you in back-to-back meetings from morning to night, with little leeway to move things around? After you get done with work, do you have a long list of home chores to get done? If so, you may want to keep your business plans aside for now. You need to be prepared to live and breathe your business once you get into it. And if you plan to launch your venture while continuing your day job, then you better prepared to move into a less high profile role that will provide flexibility in your schedule. Remote work naturally allows for some flexibility, but if your job responsibilities are demanding in terms of people or deadline management, it may be best to take a leave of absence and eventually transition out. Even more important is having support on the home front in terms of managing kids and errands. The importance of a supportive spouse cannot be over emphasized. Your spouse may or may not be a part of your business, but if he/she is not aligned on helping support your journey, then you risk not only your business venture but your marital life as well…not worth it.
4) Get stressed out handling uncertainty : It is 6:30pm and you are about to walk out with your spouse for a walk when the phone rings…there is an urgent issue at your customer site that can jeopardize your recent contract. Are you the type who freezes when unplanned events like this happen? Then reconsider your business aspirations. The only thing that is certain in small business is the next curve-ball….from employees randomly quitting, to things going wrong at a customer site, to websites going down, to a sudden cash flow crunch, things are going to be thrown at you all day long. A normal day that goes as planned is a rarity. And yes, there may occasionally be big enough issues to keep you up at night. They have to be resolved right away due to the impact to your small business, and remember, you don’t have an HR or IT department to hand these off to. Stress is part of managing a small business and if you can’t deal with the constant on and off stress, you may want to reconsider.
5) Need your weekends and vacation time : Ok, lets get this straight. We all need some down time to maintain our own health and sanity. But if you absolutely are committed to that 18 hole golf outing every Friday evening, then we might have an issue. As mentioned above in point 4, things can and will come up in your business that will need you to re-prioritize. You may be away in the Bahamas for a vacation, but will still need to stay periodically connected with the business back home. You learn to live with the business on top of mind and you learn to fit in your social and vacation time around the quiet times at your business. It is quite different from putting an ‘out of office’ on your calendar and taking off from your corporate job.
The above are not intended to dissuade the small business aspirant. To be sure, the sense of purpose and fulfillment in running your own business provides outweighs the negatives…why would so many people do it if that were not the case? Good health, a sound business plan and adequate financing are some of the obvious pre-requisities for getting started. But what I attempted to highlight are some not so obvious ground realities, especially if you are transitioning from a corporate career.