How do you know if Entrepreneurship is right for you?
I believe this is one of the top questions of 2021. A lot of Americans have become more interested in becoming an entrepreneur, especially after the economic horror of 2020; however, how does one know if entrepreneurship is right for them? What are the signs and risk/reward? This question is very difficult to answer because the field of entrepreneurship is very broad and there are so many different types. Some examples are small business entrepreneurship, hustler entrepreneurship, researcher entrepreneurship, and social entrepreneurship. Don’t worry, I’ll explain.
Small business entrepreneurship are people who have small businesses and aren’t looking to become Walmart, Costco, Bumble, or any large market capitalization company. Small business entrepreneurs are our local florist, plumbers, restaurants, and meat shops.
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Hustler entrepreneurs are exactly what it says hustlers. These entrepreneurs are working hard and always on the go. Most entrepreneurs in this field are sales driven. Insurance agents and Sales agents dominate this space of entrepreneurship. I have witnessed a sales agent who one day made over 150 cold calls to make sales, and at the end of the year he made well over $247k. His mindset was always “One more call” very similar to when we go to the gym and we want to get the extra rep in and that extra rep turns into 5 more reps.
Researcher entrepreneurship includes the entrepreneur who will study and organize their ideas and resources to build a business to minimize failing. Logic and algorithms are used a lot by these entrepreneurs. Some of these entrepreneurs include those that are looking to start a business in agriculture. It wouldn’t be wise to start farming when there’s a 10-year drought looming. Another example of this type of entrepreneurships are people who are interested in data and cloud development related to technology.
Social entrepreneurship include people who are looking to fix social issues. These entrepreneurs seek to start a nonprofit or corporation to address change in communities, states, or even the nation. I have spoken to different nonprofit founders and listening to their “why” always leaves me in amazement.
There are other types of entrepreneurship; however, I wanted to stick to these four. I selected the fields above because most people looking to become entrepreneurs will likely find their category above due to their popularity and performance statistics. So, first, let’s ask some questions to make a decision about the topic we are interested in.
1. How much do you know about your field?
When we are choosing an area of entrepreneurship it’s not always best to just get started. Understanding what is required to be successful is key. How many hours will you need to invest? What are the certifications needed? Is the area that you are looking to start business in saturated? What is the start-up cost? How can you use around you to be innovative? Asking ourselves these questions will help us to understand what is needed for us to get started.
2. How’s your credit?
Can you have bad credit and still find funding for a business venture? Yes, you can but you will have to pay more in interest. Having good credit can help when your personal credit is checked for a risk assessment to determine how much credit you qualify for.
There is a difference between personal credit and business credit. Personal credit includes our personal finances, while business credit shows our ability to pay off debt incurred by our business overtime. Our personal credit will be checked to give the bank a risk assessment on how much credit to lend. Some other things that will be considered is how much money is available in your business account. Building business credit is not an overnight process and it can take time. Please remember to speak with a financial expert to help you navigate your credit. It’s better to understand and not miss any important details or steps in the process.
3. How’s your patience?
Patience is one of the most important factors when determining if entrepreneurship is for you. Do you get anxious and upset when you don’t see results right away? Do you give up on things when you feel it’s not worth it anymore? Building a business and being an entrepreneur is definitely a journey. Things will not be easy at times. When you start a business there may be months when you may not get paid. On average most businesses can fail after 5 years. Are you willing to give your business all you have to make it past the turbulent 5 years?
4. How do you handle rejection and criticism?
I interviewed a nonprofit founder and asked, “What advise do you have for someone interested in starting a nonprofit?” She said, “Not everyone will support your vision.” Depending on what field of entrepreneurship you go into you may be looking for an angel investor or big investments from funders. You may feel that your idea is great, but if the investors can’t see your vision they will not invest. Some may not buy your products or say that it is overpriced and not all that great. Would you get upset and hold a grudge? How is your customer service when things aren’t going well?
5. Do you have a funds you can re-allocate if needed?
When we start a business, we make money immediately right? Not all the time… That happens to a select few. Sometimes sales are used to buy more product so that you can keep the business up and running. There will be months when funds are low, and you need more money to keep the business going. Do you have money that can be set aside to be used in a business emergency? If not, how do you plan on getting funds for the business when your business has its in the red months?
6. What are you willing to risk for your business?
I have heard about the sacrifices that some made to fight for their business. Some lost friends, family, and a portion of their personal happiness. They made the sacrifices because they believed that their business would be life changing and they did not want anything to get in the way of that. Are you willing to miss vacations with friends so that you can focus on your business? Are you willing to not go out as much so that you can allocate that time to your business? Are you willing to cut back on your wants and focus on building your business? Are you willing to sacrifice years of your happiness to pass down a business to your children? Are you willing to put years into a business that may possibly not work? What are you willing to risk for your business?
So…Is it worth it to be an entrepreneur?
That question must be answered by you. There are a series of questions above for us to consider and depending on your answers will determine if the entrepreneurial journey is right for you. Are we willing to change so that we can have the life that we want and desire? Are we willing to invest into personal growth and get out of our comfort zones because our families deserve it? The journey of entrepreneurship can be similar among the various types we described above, but some require a hefty amount of time and effort, and some require time, but not as much as others. So that’s where the risk and belief in ourselves come in. Do we trust that we have what it takes? Or is the risk too great?
Is it okay to not be an entrepreneur?
I believe that we all need a side hustle to generate extra income. The times we are living in requires that of us, especially among my generation. If entrepreneurship is not right for you, it’s okay for you not to be an entrepreneur. The journey is not for everyone, but I would still consider a side hustle and different avenues to create passive income.
Thank you for reading my post “How do you know if Entrepreneurship is right for you?” I hope that this post provides perspective into the field of entrepreneurship. Entrepreneurship is a journey and there are different ways to turn your vision into something tangible. Time has the ability to turn our journey of entrepreneurship into a roller coaster and can have a lot of unexpected dips and turns when you may not be expecting it. One thing that I have learned is you don’t have to be on this journey alone. There are other entrepreneurs who will share experiences and tips about the journey. Some will not, but a majority will. With answered questions and an understanding of what is needed and expected we can answer the golden question. Are there more questions that should be added above? How was your journey in entrepreneurship? Please comment below. If this post can be helpful to someone please feel free to share and if you are new to Millennial Oaks Please subscribe 😊.