venturcelerator
Entrepreneur Myth #3: The Entrepreneur Risked It All to Make It
This is complete bullshit. The media makes heroes of entrepreneurs who have risked it all to make it. Risking it all is not the “secret to entrepreneur success.” Whether a newbie entrepreneur or veteran, the reduction of risk is critical in any venture – which means you’ve gotta have enough moola (money) to sustain your venture during its ups and downs.
Mortgaging your house, using your credit cards, putting up all your savings for your new venture is a recipe for disaster. Been there, done that, experienced it. Entrepreneurs that risked it all “had no choice” but to risk it. The odds of your venture becoming a success are much lower than you and your enthusiasm might warrant. Depending on the sector, your chances of success are against you.
For instance, if you’re starting a restaurant in today’s recession economy, be very cautious. Restaurants are a high-failure business so you’d better have enough cash to sustain losses (unless you’re Chef Gordon Ramsey). If you’re starting an Internet company, especially social media, the odds of making it will vary but at least your fixed costs are going to be substantially lower – if you know what you’re doing.
Ted Turner became a billionaire because he had no choice. When his father died, he assumed the billboard advertising business, loaded with debt. He had to succeed. He could have walked away and become an employee for some company but he chose the path of entrepreneurship, saved the family business, made billions and now he’s the largest landowner in America.
The easiest way to eliminate risk in a new venture is to keep your fixed costs low until you raise the necessary capital (which could take nine months) or sales revenues kick in. I’ve seen entrepreneurs quit their day jobs and start their venture without even proving their idea has validity or market acceptance. Don’t be a brave entrepreneur. Be a smart, low-risk entrepreneur. Backing yourself against the wall is not going to make you work any harder in your venture.
When you see the media glamorize entrepreneurs who’ve risked it all and won, please realize these entrepreneurs hit what I call the “entrepreneur lotto.”
If you’re a new entrepreneur, do me a favor: try not to risk it all. I’ve done it a few times and sometimes it has worked and other times it became a cluster f&$K failure that had major personal consequences. Yes, take my advice, even though I didn’t use it all the time.
Now, if you want to risk it all, do it while you’re young. If you fail, you’ll have time to recover but no matter what any entrepreneur says, failure is not an easy road to deal with once it occurs. Been there and done that too.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. Have you ever risked everything to fund your venture? What was the result? Would you do it again?
3. Is it better to risk it all when you’re young and inexperienced or when you’re older?
Read Entrepreneur Myth #4: Ideas Are a Dime a Dozen
SUBSCRIBE to the PODCAST: Entrepreneur Myths on iTunes
Mortgaging your house, using your credit cards, putting up all your savings for your new venture is a recipe for disaster. Been there, done that, experienced it. Entrepreneurs that risked it all “had no choice” but to risk it. The odds of your venture becoming a success are much lower than you and your enthusiasm might warrant. Depending on the sector, your chances of success are against you.
For instance, if you’re starting a restaurant in today’s recession economy, be very cautious. Restaurants are a high-failure business so you’d better have enough cash to sustain losses (unless you’re Chef Gordon Ramsey). If you’re starting an Internet company, especially social media, the odds of making it will vary but at least your fixed costs are going to be substantially lower – if you know what you’re doing.
Ted Turner became a billionaire because he had no choice. When his father died, he assumed the billboard advertising business, loaded with debt. He had to succeed. He could have walked away and become an employee for some company but he chose the path of entrepreneurship, saved the family business, made billions and now he’s the largest landowner in America.
The easiest way to eliminate risk in a new venture is to keep your fixed costs low until you raise the necessary capital (which could take nine months) or sales revenues kick in. I’ve seen entrepreneurs quit their day jobs and start their venture without even proving their idea has validity or market acceptance. Don’t be a brave entrepreneur. Be a smart, low-risk entrepreneur. Backing yourself against the wall is not going to make you work any harder in your venture.
When you see the media glamorize entrepreneurs who’ve risked it all and won, please realize these entrepreneurs hit what I call the “entrepreneur lotto.”
If you’re a new entrepreneur, do me a favor: try not to risk it all. I’ve done it a few times and sometimes it has worked and other times it became a cluster f&$K failure that had major personal consequences. Yes, take my advice, even though I didn’t use it all the time.
Now, if you want to risk it all, do it while you’re young. If you fail, you’ll have time to recover but no matter what any entrepreneur says, failure is not an easy road to deal with once it occurs. Been there and done that too.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. Have you ever risked everything to fund your venture? What was the result? Would you do it again?
3. Is it better to risk it all when you’re young and inexperienced or when you’re older?
Read Entrepreneur Myth #4: Ideas Are a Dime a Dozen
SUBSCRIBE to the PODCAST: Entrepreneur Myths on iTunes
Views: 0
© 2012 Created by entrepreneurdex team.
