Friday, April 20, 2007

Reasons stopping you from becoming an Entrepreneur

So, you want to set the world alight, you want to be in control of your own destiny, you want to earn more money and you want to be your own boss. But why are you not an entrepreneur yet? What’s the reasons that are stopping you from becoming an entrepreneur?

1. Lack of capital

For people doing retail or F&B businesses, a lot of upfront capital would be needed for the advanced rentals, renovations, equipments and furnitures. And not forgetting the operational costs which include the monthly rental, salaries, inventories and other advertising expenses. If you are doing capital intensive business, you would probably be facing the problem of lacking capital. One way to overcome is to start small, accumulate enough capital and then expand. Another way would be to find a few sleeping partners to chip in. There are always people who have tens/hundreds of thousands in their bank, wish to invest to earn some passive income, but do not wish to get their hands dirty. Whether you are able to persuade them that your business has high potential would be another question.

2. Heavy commitment

Some people have heavy commitment like cars, house installments, and kids. Well, the only thing I can say is, if you have the intention to be an entrepreneur, then try to manage your personal finance properly. Its like, if you are going for hiking, bring along only the necessities. Don’t stuff a television inside your backpack.

3. No business idea

You want to be an entrepreneur, but you do not know what you want to do? Then I think you’d better go and review why you wanna be an entrepreneur first. Chances are, you do not even know what you want.

4. No business partners

It is not easy to find like-minded business partners. Think about this: Would you still venture out if you can’t find a partner? If not, why? Because you do not have the required skillsets? Or because you are afraid of doing it alone?

There are diffent ways of overcoming this problem. Try to speak to more people, especially people who have experiences in startups.

5. Opportunity cost too high

Well, one of the reasons why many graduates are not venturing out is probably because of high opportunity costs. To give up high paying jobs to pursue a dream or passion that may not succeed seems to be a tall tale in this pragmatic society. Till date, I had sustained an opportunity cost of more than S$120,000. It would be quite demoralizing if you keep looking from this perspective. As I always said, if you really feel strongly about something, a S$1,000,000 opportunity cost is the same as a $10 one. To me, as long as the people around me don’t suffer (financially or emotionally) from my decision, opportunity cost shouldn’t be a stumbling stone.

6. Do not have the required skill sets

Don’t have the required skill sets? You just have to go and acquire it, or find someone who already has it.

At the end of the day, you either feel so strongly about something that you would go ahead at all cost, or you just don’t really have enough passions.

Have I left out anything? Yes, it’s the ultimate reason, FEAR. I will talk about it in my next post.