Interested in running your own business but unsure of where to start? Does the idea of being your own boss seem appealing, but you’re overwhelmed by the fear of failing?
Many people dream of starting their own business, but getting started is not a straight or easy path. We all know starting, maintaining, and growing a business is no small feat—one third of new businesses fail within two years of opening. In fact, 90% of new startups fail, 75% of venture-backed startups fail, under 50% of businesses make it to their fifth year, and 33% of startups make it to the 10-year mark.
If you’re interested in pursuing a career in entrepreneurship, it’s important to consider the below questions.
Do I have it in me to be an entrepreneur?
Not everyone is capable of being a successful entrepreneur—and that’s okay. There are many people who are incredible managers but lack the skillset to lead a team (let alone an entire company). Entrepreneurs must be comfortable with taking command and owning their team’s triumphs and failures.
Generally speaking, you should be asking yourself if you would prefer to work under the supervision of others. If the answer is yes, entrepreneurship may not be the right path for you. However, if you answered yes, you may be one step closer to realizing your entrepreneurial potential.
Can I turn my ideas into reality?
Once you know that you are okay with stepping away from the comfort of your salaried, benefited job, you need to figure out how to turn your ideas into reality. For some, this is where the journey ends. Overwhelming and anxiety-inducing feelings start to sink in. Before you throw in the towel, do your research and seek advice from successful, business-savvy entrepreneurs. Their expertise and knowledge will be incredibly beneficial to helping you take the next step into entrepreneurship.
Are you financially literate?
Make sure you know the ins and outs of running a business. Biting off more debt than you can chew will most likely not fair well. Consult friends and mentors if you are unsure of how to take next steps into launching and maintaining your business.
What if I fail?
If you want to be an entrepreneur, you must be accepting of failure. Entrepreneurs fail all the time, and that doesn’t make them unsuccessful—it makes them resilient. You need to tolerate not being “right” all the time and gracious with taking criticism.
Choosing an entrepreneurial career is not for everyone. However, if you think it may be the right path for you, ask yourself the above questions and answer honestly. You might be surprised by your answers.
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Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.