If you’re like me, you probably already know that Financial Freedom should top the list of desires that you want to achieve, with your time on the planet. Owning your own business is the No.1 route to Financial freedom.
Financial freedom makes everything else Possible – or in the case of the working middle-class – REACHABLE.
The reason traditional parents encourage their children to go to school and study Medicine, Engineering, or Law is to be able to land a good job or build a good career and aim for Financial security.
By now you already know that while a good job or profession is the SLOW (although Steady) route to reach there, it may make you feel that you are missing something.
Especially when you see your buddy – who started their own business a few years back – race past you to the finish line…
… and wonder to yourself – whether that could have been You!
Don’t worry – you are not alone.
In my business of Startup Consulting, I meet people like you all the time – some of them even have your kind of smartness and ambition, and many are as driven as you.
Till a few days back, I used to be even shocked in disbelief, that such smart and driven people like you are actually NOT in your own business already…
… And then one day, I realized that it is not because you don’t have the right roots or background…
… It’s not because you don’t have the money, or the skills..
… It’s not even because you don’t have the time..
…I realized that you don’t even know what it is – that is holding you back…
You need to know what obstacle to overcome…
You need to know where to start…
In this post I will share with you the Three Big Reasons You Don’t Own Your Own Business.
Reason No. 1 – Startup Capital
This is the No.1 reason most people like you do not start their own business.
Since time immemorial we have had this idea ingrained into our head that a business takes a lot of money to start.
And putting in your life’s savings into something that has a higher chance of failure – than a chance of success, is a proposition you may not be able to stomach.
Reason No. 2 – Business Knowhow
While most people like you already have a pretty good mastery of “Industry skills”, what they lack is the knowledge and experience to run a business – also called “Business Knowhow”
Business knowhow involves things outside your shop, so technically speaking – “Industry skills” or more accurately – “Employee skills” are of no great use here –
Some of the most important types of Business Knowhow that could be critical for success or failure
- Target Market – Knowledge of the Market is probably the MOST IMPORTANT type of Business Knowledge there is.
In fact, one of the biggest causes of failure in business is too much inward focus on “product” and too little focus on “market.
You will find that once you have the Market know-how in place, even an average “Product” will do wonders, if promoted smartly.
[Also Read: When the Principles Are Right, Even Failures Are Forgiven]
- Competition – Knowledge about the Competitive landscape is the next most Important factor in business success.
Now don’t get me wrong – having competitors in your market is great news! It just goes to show that it is a rich, vibrant market.
In fact, at MDA we encourage our clients to step foot into an established market where other players have been working successfully for many years, instead of shooting for gold with that “one bright idea” that nobody else thought about, that could very well turn out to be a shot in the dark.
- How to Grow (Scale) Your Business and Build the Right Team – In order to grow the business and expand your profits, you will need to depend on a skilled and loyal team, who are working together for the vision that you provide them.
Building teams is something that you may or may not learn in your job, but is a skill that is so essential that it makes the difference between the-Rich-&-the-Famous and the Has-Beens.
When you finally catch the attention of your audience, and the time comes to play your own tune, having your own team will determine if you can play like an orchestra and win the crowd.
Reason No.3 – Time and Effort
Do you have stamina and commitment?
As a startup founder, remember that the buck always stops with you. There is no room for the blame game.
Contributing factors aside, most startups fail because they just give up, not because they run out of money or time. Focus on building personal staying power, maximize learning, and improvements.
A start-up is hard work, and fraught with many challenges – and worst of all, there literally NO GUARANTEE of success (in fact, it is guaranteed that the odds are stacked against you with 9 of 10 businesses failing within the first 5 years)
Remember, the grass always looks greener on the other side of the fence.
I tell new entrepreneurs not to quit their “day job” until they have real revenue from the startup. That way, they can dip their feet in the water and test whether they are up to the grind.
Reason No. 4 (Bonus) – Risk
Okay, so let me throw in a bonus reason there, this is something that is mainly psychological – however remains as a major ambition-crushing factor!
Broadly speaking, risk comes from inadequate Business know-how and making incorrect decisions during the start-up stage.
Risk is not Real.
Either you know what you’re doing…or you’re shooting in the dark.
Smartly trying out new ideas in a proven market, with miniscule budgets (so as to not lose your shirt) – is not called Risk-taking – it’s merely called “Testing”
That said, any investment must be balanced against risk.
Theory of Baseline Return –
If you are going to invest $50,000 in a business, the potential return has to be (at a minimum) higher than what it would earn investing in a Treasury Bond. The higher the risk of the investment, the higher the potential return needs to be.
Income Opportunity Cost –
Although you are starting a business to make money as the end goal, you need to accept that when you step into entrepreneurship, you will almost immediately be earning less in the upcoming years.
You may see valuable career alternatives in front of your eyes everyday and the opportunity cost for a younger person is even higher.
So there you are – these are the biggest reasons holding you back from owning your own business.
The idea here is not to discourage you, but to help you identify the enemy – and hopefully guide you through the simple steps involved in getting to the Gold.
Stay peeled for more posts coming through soon.
And meanwhile, do Download my Business Starter Guide – 7 Urgent Reasons to Launch Your Startup NOW!
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The contents of this page are provided for educational purposes only.