So have you recently been bitten by the startup bug? Have you been introspecting as things aren’t looking hunky-dory on the corporate front?
Surely you might have chartered out an effective business plan and have your finances in place. However, before you take the plunge and send your resignation letter to your boss, there are a few things you must consider.
Just about every working professional has a startup idea and a plan to venture into entrepreneurship. Although having your own business may seem rosy as you are required to be independent in taking decisions and answerable to just your own self, there are a lot of challenges involved in this journey. Therefore, it will be wise to think twice before choosing between a 9-to-5 job and pursuing your startup idea.
A study indicates that almost 50 percent of small businesses fail before they reach their five-year anniversary. This failure is attributed to a lack of experience, low business capital and excessive debt financing. Businesses may also fail due to market risk, which includes numerous competing companies or lower-than-expected sales. Minor shifts in the economic environment such as consumer demand or available credit may also create severe losses for small business houses. No matter what you or your friends think, these statistics do not paint a rosy picture about new entrants in the industry.
Challenges Involved in Being Your Own Boss
In the initial days of entrepreneurship, you will have to bear the immense responsibility of naming the business, doing substantial paperwork, hiring employees, laying down the rules and regulations, and marketing, among others. This requires high level of commitment and putting in long hours at work. Then comes the challenge of undertaking significant financial risk and uncertainties regarding your income and profit every month. It takes time for the startup to be profitable. Stress caused by the financial burden may cause many entrepreneurs' dreams to crumble. You must work even on public holidays, and it will require you to be constantly on your toes even on weekends and vacations. You may not even get enough time to socialize or be with your family.
The venture will require not less than 2 to 5 years to grow and prosper and start getting significant return on investments. You cannot just give it away if it gets too hard but hang in right there patiently. Any form of startup entails huge sacrifice with no guarantee of reward. You are solely responsible for the success or failure of your business.
Life As a Regular Employee
In a 9-to-5 job, career tracks and opportunities for advancement are typically well-defined. Uncertainty is not the name of the game here. Here you will have a relatively low amount of risk. This form of employment is ideal for an individual who wants more stability and predictability in his career. With so many departments across the organization, you will find yourself in the midst of better networking opportunities. You get your salary credited to your account on time every month, beyond getting a number of fringe benefits such as Mediclaim, conveyance allowance, PF deduction, and the like.
Motivation in a 9-to-5 Job Versus a Startup
Promotion, recognition and bonus are the three motivating factors for any employee. They motivate you to get up in the morning and commute to work every day. When you are working for yourself, you need to be strong-headed enough to charter your daily schedule, and chances are that you may not be able to follow your routine as religiously as you would otherwise do as a corporate executive. You might constantly find yourself on your own as there might not be a bunch of people around to praise you for your hard work. For an employee, however, a good work environment and a good team make you feel energized enough and push you to work harder.
Doing your own thing is not a cakewalk, for it entails a number of considerations unlike giving an interview and starting work a fortnight later. However, it is worth your effort and time and you must go ahead by all means if it is your true calling in life. No one should dictate terms to you, for you alone are responsible for your long-term ambitions.