Some people become an entrepreneur out of necessity because they can’t find a job. Others become entrepreneurs out of passion. Regardless, you have to consider both the risk and the reward. The potential benefits are unlimited, yet there’s a 50/50 chance or greater that you’ll fail.
Risks
Some people say when you become an entrepreneur, you wake up unemployed every morning. Entrepreneur Magazine reports that around 94% of all new businesses fail in their first five years. It’s definitely risky business.
Regardless of the risk, according to a study of entrepreneurs conducted by Master Card International, 65% of small business owners would tell a friend to start a business now, rather than wait a year. And according to MSNBC, small businesses are responsible for over 75% of the net new jobs in the economy.
Rewards
Experian reports that self-employed entrepreneurs make around 25% more than the general population. Plus, there’s all the tax breaks. Of course, the billionaires in America all started out self-employed: Bill Gates, Warren Buffet, Donald Trump and Sam Walton. Proof positive of great rewards.
The US Census Bureau reports that 49% of the nation’s so-called micro businesses are run from home and the Dieringer Group places the number of Americans running businesses from home at 45.1 million. With the Internet, it’s easier than ever to start a business. Yahoo reports that well over 75% percent of adults surveyed online indicated that the Internet directly facilitated the launch of their new business.
So, how do you become an entrepreneur and minimize your risk while maximizing your rewards?
First, understand leaders are not born. Anyone can become a leader in any area if they so desire. (Read OUTLIERS by Gladwell) Set realistic expectations and manage them aggressively. Second, never, ever, ever quit! Ask any successful entrepreneur and they’ll tell you they were determined to succeed. Quitting was not an option.