Dark side of entrepreneurship

social risk.
Starting from inception, any new venture requires financial resources which in some cases may not be readily available and the innovative entrepreneur must start thinking of where to get the money. Not an easy way out, but there will obviously be some options available.
Financial risk
One can either liquidate their savings and in doing so, requires a well-calculated risk.
This may take more than just a decision from an individual and selling the idea to a spouse for instance, may not be that smooth sailing.
At this juncture, a business plan then becomes handy and helps bring reassurance that resources are being committed to a viable venture with returns. Liquidating savings nevertheless is just not an easy decision to make. Many families have been left exposed after the business owner “burnt” all the money they had into a failing business venture. In the majority of these cases, the owners only realise that they are sinking when they have exhausted all that they have.
There are also instances when established entrepreneurs turn to their profitable investments to support the new kid on the block. Not a bad idea as long as it will not pull down the other enterprise. Accountants have a funny way of explaining that it is possible to keep a loss-making business for “tax purposes”. I cannot understand this, please help me.
If you ask me, I will tell you that I will never agree to such an arrangement. If it cannot cut the grade, then it must go, period.
The more daring entrepreneurs will go to the extent of relinquishing ownership of their properties or even borrow from other sources just to get the venture going. The risky side to all these manoeuvres is that all can be lost if the venture fails and can also expose you to bankruptcy.
Career risk
Emerging from a venture failure, some entrepreneurs immediately think of going back to their old job and in some cases can be clueless in finding a new one. This is worsened in the case of those who previously occupied a secure job and may have imagined that they have made it in life. Odds are that given the chance you can never be the same in that position, as your pride will be eating into you.
Family and social risk
It takes a lot of conviction to win over family members to support the beginning of a venture when things are not well organised. Being the innovator, one requires more energy and time building up the basic requisites for the venture. It is easy to get labelled as a “self-centred” individual as you devote more time for personal development and venture fulfilment. This tends to take a toll on an individual with some describing you as an “anti-social” person who cannot spare time to be with others.
Physical risk
As a result of increased focus on the new venture, individuals can suffer from personal stress possibly arising from loneliness, immersion in business, people problems and the need to achieve factor. Because you have distanced yourself from society and you have turned yourself into a loner, the stress levels tend to deteriorate. It has to be noted, however, that not all stress is bad and it can be dealt with to avoid decline in physical abilities.
As an entrepreneur, you need to be physically and mentally fit and any deficiencies can have an adverse effect in the well-being of the venture. You need to get rid of that entrepreneurial ego, that creates great pressure in mental development. Just free your mind, it’s not just about business all the way. Create and make the time for fun as well, in other words you must enjoy.
Risk management
Given the risk inherent in entrepreneurial development, it is critical to devise risk absorption and retention strategies. One thing for certain is that you cannot enter a risk-free environment that will embrace you and emerge unscathed. Not possible. You can, however, adopt risk reduction and avoidance mechanisms that will help you cope with the pressure.
Taking a holiday and spending time with your family, for instance, will come in handy in recharging your batteries. Playing golf, going to the gym and pursuing other social engagements can come in handy in your stress management programme.
A relaxed mind can present a totally different perspective from a pressing business environment. Stories are told of some individuals who have taken their lives because their ventures have failed or they have no one to turn to.
Entrepreneurship is not an exact science. We are not dealing with chemistry or physics here. We are dealing with human beings who make mistakes, get distracted, have blind spots, lack experience, get overwhelmed, have personal issues, are sometimes delusional, hire the wrong people, are naive, are too trusting, are not trusting enough and experience fear.
In addition, bad things happen that are out of a person’s control: fires, floods, illness, bad economies and bad people.
A classroom is valuable, but it exists in a vacuum and does not teach you how to become a good entrepreneur.
If you are in business and have never made a mistake, you are amazing. I have made hundreds of mistakes, and have tried to learn from them. I also know that I am lucky that none of those mistakes were fatal.
As always, let’s make money.
[email protected]