It’s no secret that many start-ups fail within their first few years of operation. Why do people take on the risks of starting a business when there are less risky alternatives to generating additional income? One possible answer could be to accelerate their personal growth.
Many seasoned employees are waiting indefinitely for opportunities to advance in their careers. Some face limited upward mobility due to inadequate education, outdated skill sets, or slow company growth. If you have already gained years of knowledge and experience in your field, it may be time to create new opportunities by starting a business. As a business owner, you will gain knowledge and experience in the different roles that make up a business.
Choosing the Right Pathway
Consider whether becoming a solopreneur, micropreneur or entrepreneur is the right choice for you.
As a solopreneur, you are the sole person responsible for running your business. A solo operation is open to the same liabilities as any other business, which is why taking out professional liability insurance or “errors and omissions” is highly recommended.
Wearing many hats is the norm for a solopreneur. They must be highly self-motivated and have a sense of urgency to grow their business. There will be direct competitors with the advantage of more resources and larger teams. Without the drive to deliver daily results, your business will remain a hobby.
As you grow to be an expert problem solver, your track record of success and overcoming challenges will make you more confident.
A micropreneur, prefers to run a small-scale operation with only a few employees. Strong leadership skills and knowledge of employment best practices are required. Micropreneurs have to understand and follow the correct employment practices of their industry or risk getting fined. The cost of training an employee can be costly, so it is vital to retain your newly trained employees until they can be productive and give you a return on your investment.
Liability increases exponentially with employees. There are many unknowns, such as sick days and injuries, that could negatively impact your business. As a micropreneur, you will learn to manage teams, delegate tasks, and become a confident leader. Empathy is an important quality for a leader. Understanding your team and what drives them is crucial to keeping them motivated even when a supervisor is not present.
An entrepreneur can operate one or more businesses. They have no shortage of drive and desire to achieve their goals. The fear of rejection and failure is not a barrier. A great entrepreneur knows how to present a business idea and sell it to others.
Investors invest in people. The personal growth experienced from being in business as an entrepreneur will only further your appeal as a leader committed to achieving your goal.
Growing Your Skill Set
Mastering your skills is all part of being an expert. It is not good enough to be an expert in one role and not understand the others. What you don’t know will cost you money. Having a general understanding of what the people you hire are required to do in their role is vital when assessing the value of something and negotiating wages or prices.
The worst thing an entrepreneur can do is overpay for something that doesn’t bring the desired results. Without a good understanding of the steps required for a job, you won’t see the red flags early enough to save your company from being taken for a ride.
Another reason why it is crucial to understand other roles is communication. When you communicate in the technical language that matches the industry of the contractors or freelance professionals you’ve hired, you’re guaranteed to get better results.
Understanding the industry tools at your disposal makes your entire operation more efficient and gives your company a competitive advantage over those who refuse to keep current.
Overcoming the Fear of Failure
If you are the tough-skinned, dedicated type who likes a challenge, then being an entrepreneur may be a good fit. Entrepreneurship is about having the strength necessary to endure hardships and the power to delay gratification.
Choosing to become a solopreneur, micropreneur, or entrepreneur would be a definite game-changer for any nine-to-five employee worried about lost opportunities and wasted talent. Invest in yourself and seek expert advice before leaping into unfamiliar territory. A business mentor could provide the guidance needed to avoid the common pitfalls that most amateur business owners experience.
Failing is not unique to business; it’s a normal part of our everyday lives. Each success or failure should add to your determination and confidence. Don’t let the fear of failure hold you back or make you feel the need to settle for less. Playing it too safe will only limit your options. The new knowledge and experience acquired from starting a business is invaluable to your personal growth.