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Insight & Analysis - February 2, 2022

5 Business Realities You Should Know Before Becoming an Entrepreneur

Get prepared for the realities of the business world before quitting your job or setting out full time.

The word ‘entrepreneur’ has been overused these days as owning a business has been romanticised to the extent that people have confused fantasies with realities. Although it is good to have your own business, it comes at a cost. These are mandatory sacrifices that you must make for your business to succeed.

Identifying these will also help make the correct business decision, thus separating realities from widespread misinformation. Here are the things to know before taking the entrepreneurial path.

You might have to work round the clock

One of the benefits of being your boss is that you are in charge of your time. But, the fact is until you are a well-established entrepreneur, you will have to work round the clock. Time is money, and every second you invest in your business matters.

Due to this, you might not have time for your family, friends, or leisure activities. Tanzania’s billionaire, Dewji Mohammed, said he works for 100 hours a week which is 14 hours in a day. However, he admitted slowing down a little bit due to the kidnap fiasco. However, he still desires to explore more marketplaces and milestones.

However, remember that living a healthy lifestyle is also essential to your business. Hence manage your time well by having a proper working schedule.

It is a risky venture

Risk is a constant variable in every business venture. However, entrepreneurs don’t generally take many risks or regularly put themselves in high-risk circumstances. This is because they take calculated risks. Therefore, before starting your business, you need to calculate, evaluate, and plan for risk. This entails evaluating the risks in your sector before moving forward with a company strategy.

It’s risky to think business is about being lucky if you do not consider all the risks involved. There are good or bad times in business, but entrepreneurs are not gamblers who depend on luck, entrepreneurs take calculated risks.

Raising capital is very dicey

To start your business, you need capital, and why a loan from a bank seems like a good option, you’re better off with your savings and the money from friends and family. This is because, despite your hard work, the business can fold up, making it impossible to repay the loan. 

Be prepared for failure

On your entrepreneurial journey,  failure might raise its ugly head from time to time. However, you can’t afford to quit as an entrepreneur but identify when to pivot or bow out of business. 

So before you resign from your six-digit job, ensure you are ready to face the unpredictable world of entrepreneurship.

You might not become a multi-millionaire

Some business people indeed amass wealth in their business. This is evident in some notable startups across Africa that have made it within a few years of launch. On the other hand, some have incurred losses and are still fighting to keep their dream business alive.

 

READ ALSO: 8 Sacred Business Lessons From Tony Elumelu to African Entrepreneurs

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