While it may not be as common as “I’m going to work out every day,” many people’s New Year’s resolutions may include, “This is the year I start my own business.”
Entrepreneurism can be a great New Year’s resolution. Just make sure you’re doing it for the right reasons.
Reason 1: “I want to take control of my time.”
Understandably, many people feel confined by the corporate model of a 9-to-5 workday with two weeks of vacation. However, very few successful entrepreneurs work just eight hours a day. Most work more than five days a week, and frequently on holidays. Some may go years without a vacation, or even maybe more than a long weekend, and feel obligated to be available to staff and customers even when they are away.
Entrepreneurs may have more control over how they allocate their hours, but the time commitment is much greater than a regular job. This is definitely one of those “be careful what you wish for” situations.
Reason 2: “I want to make more money.”
There is probably no worse reason to launch a business than the desire to get rich. A few entrepreneurs do, but nearly one quarter fail in the first year, and half fail within five years.
Entrepreneurism is risky, and for people with significant financial obligations, such as family or property ownership, the risk becomes that much greater. Many entrepreneurs borrow money to start their businesses, which means failure could result in serious damage to their credit score. If a new venture can be started as a side hustle, or the individual has enough financial resources to absorb potential losses, the risk is reduced. However, extremely few new businesses turn into “get rich quick” stories.
For many startup businesses, financial success is only really realized when the operation is sold. Only a tiny percentage of startups actually generate enough revenue for their owners to go buy mansions and yachts.
Reason 3: “I want to make the world a better place.”
This, on the other hand, may be the best reason to start a new venture. The most successful entrepreneurs are often those who have identified a problem or need and have devised an innovative solution that they can turn into a business. Carefully researched and considered, well organized and adequately financed, the proverbial “better mousetrap” is indeed a pathway to success.
That success may still not come in terms of huge revenues, but there can be a world of satisfaction in seeing a creative idea improve society while providing a reasonable living for the business owner.
Reason 4: “I want to challenge myself.”
It’s safe to say that this outcome is guaranteed. But people need to be clear-eyed about just how much challenge is involved, and how much they are capable of taking on. Entrepreneurism is a high-pressure, high-responsibility field, especially if one hires staff, borrows money, invests significant personal resources and so on.
Being an entrepreneur also requires a broad skill set. Some of these skills can be learned, like developing a business plan, financial management or social media and marketing. Others are innate, such as self-discipline, self-care, and perhaps most important of all, people skills. Managing employees, maintaining customer relations, dealing with vendors and financiers, and simply handling the inevitable frustrations of working closely with a variety of human beings on a daily basis, requires an outgoing personality and a lot of self-control.
Taking a creative, innovative concept and developing it into a successful business venture is one of the most rewarding experiences anyone can have. It also requires a major commitment, typically involves a good bit of risk, and should be undertaken only after serious consideration.
No matter what your resolutions may be, Happy New Year!
Keith Twitchell spent 16 years running his own business before becoming president of the Committee for a Better New Orleans. He has observed, supported and participated in entrepreneurial ventures at the street, neighborhood, nonprofit, micro- and macro-business levels.