Becoming an entrepreneur is an exciting concept. Finally being able to be your own boss and to make your own fortune in the world of business gets people energized and gives them the strength to deal with the innumerable obstacles they face. Unfortunately, in all that chaos, there are a few things new entrepreneurs overlook and that can grow into huge problems down the line. Today, we will be talking about these most common oversights that new entrepreneurs make.
You Don't Get a Salary (at first)
For many fresh entrepreneurs, the fact they cannot draw a salary for at least half a year to year hits them like a ton of bricks. Your new endeavor needs all the cash you can spare and finding room in your balance sheet to take care of your salary needs is impossible in the vast majority of cases. While some entrepreneurs do not see this as too big of a problem since they will spend 23 hours a day working on their business anyway, there are people who are taken aback when they find out the money is scarce. This is especially true for family people with a lots of mouths to feed.
There is Too Much Legal
For most new entrepreneurs, it is all about grand ideas, business models and ways to better their new enterprise. In reality, however, running any kind of a business comes down to 90% legal and paperwork and 10% actually running a business. For instance, you may find out that you have to learn about surety bonds or that there are 78 regulations you need to be 100% sure about. You might learn that there are 173 papers you need to fill in every single week and about 14 conversations with your lawyer over the course of a month. For many entrepreneurs, this is a very sobering realization.
Everyone Makes Mistakes
This oversight could also be called "nothing goes right", as it covers the very brutal entrepreneurship fact that everyone makes mistakes. You will make mistakes. People who work for you will make mistakes. Your customers will make mistakes. Your suppliers will make mistakes. Your partners will make mistakes. Your accountant will make mistakes.
The important thing is to know, but really KNOW that everyone will be making mistakes and that this is just another facet of your life as an entrepreneur. Try to keep your composure and deal with these inevitable mistakes in an organized and matter-of-fact way.
It Takes Time to become Someone
Many entrepreneurs believe that just because they started a business and launched a website, they will instantly become a household name. They imagine a situation where, in three months, their business will become a smooth-running operation that makes the biggest players in the field sweat.
Unfortunately, this is not how the real world of entrepreneurship works.
It takes so much hard work to build up a business. In addition to working harder than ever in your life, you will also need a bit of luck to really make it. Sure, there are some companies and businesses that burst through in matter of months, but they make such a small portion of the market that they are better seen as an aberration than anything else.
If you thought your company will grow from an unknown little player into a global corporation within months, it might be a good idea to rethink your expectations.
Your Private Life will Suffer
Ask a thousand entrepreneurs a hundred questions and you will rarely get the same answer to any of those questions. Except for one. Namely, they will all tell you that their private lives have suffered. They just do not have the time for their family and friends, let alone hobbies or pleasurable activities. Once you start a business, you can kiss your free time goodbye.
Many entrepreneurs understand this and make a conscious sacrifice. However, there are also many new business owners who rushed into it all thinking that they will be able to balance their new business and their private lives. This is simply not possible. Sure, you may get some semblance of a private life back once you get your new business organized and running somewhat smoothly. Still, do not expect too much.
It was not our wish to scare you away from becoming an entrepreneur and starting a business. It is an exciting and fulfilling life. However, it is important that you are aware of some of its less-than-fantastic aspects.
Also published on Medium.