Flickr photo by: delitefulimage
I spent a good bit of my March in Las Vegas (LeadsCon) and Austin (SXSW) at conferences (which I paid for) and loved sharing startup stories with fellow entrepreneurs (Hint: everyone wants to tell their startup stories). Upon my return, I stopped by the bank and after reviewing my trip, she said, “You entrepreneur guys will get so rich.” While I appreciate the encouragement (her statement was more of a blanket for business owners than my deposit size), I realized people really have a skewed perspective about an entrepreneur’s life.
I’m a huge advocate of people with j-o-b’s starting their own ventures (preferably not as a consultant… individuals don’t scale), but I think some see it for what it’s NOT. It is not always fun and just downright sucks at times. I don’t like fixing a customer issue at 7 pm on a Thursday night, which I just did, but I’d still wouldn’t trade it for another path. So here are the top five misconceptions I seem to run across.
- Entrepreneur’s get rich – Sure, the tales of a business selling for millions reach the headlines, but if we were to print a daily business obituary the newspaper industry might just be profitable. The statistics are NOT in the favor of starting a new business and the bailout you’re hoping for probably isn’t coming. If you’re only in it for cash, it’s not worth it. You’ll burn out and a “career” in Multi-level Marketing might be a better avenue for your treasure hunt.
- Just write it off – I’ve been to numerous lunches with friends or customers who say, “Let Todd’s company pay for it. He can write it off, right?” Yes, I can write off some expenses, but it’s my company’s money which ultimately means it’s MY money. An expense is an expense, no matter who pays. If you’re used to your employer paying for meals, conferences (very costly) and happy hours… you’ll likely re-think the idea when you’re “writing it off.”
- Have tons of leisure time – I know many people who work crazy amounts of hours in their j-o-b. I know people who have jobs work hard and sometimes the structure they required to operate within can be restrictive. Personally, I rarely watch the clock at lunch and book many coffee meetings that last past 10 AM. Managing my own time is a HUGE benefit for me as an entrepreneur, but just like those who work for a company… it varies. I would mainly say we have more control over our work structure, but the obligation can also be higher (golf a lot, payroll doesn’t get met).
- Be your own boss – Speaking of payroll, I am responsible for the livelihood of several people (which is scary for most at first), but we all answer to someone. For me, it’s usually my clients. The expectation of a customer is drastically different than an internal co-worker (some dorks call their co-workers clients… dumb). Some of my entrepreneur friends answer to investors and some answer to the clock (i.e. – burn rate). I struggle with this one as really want to make sure my employees like the work and the structure. It’s not perfect, but they’ve learned I make many decisions influenced by the company’s circumstances not my opinion.
- Startups are fun – Yes, startups can be VERY fun. I love the camaraderie with our team. The people make the work even more enjoyable. However, the implication by some is it’s all jolly good times. The reality is it’s also scary, it’s tough and driving the early momentum is just brutal. Remember: you’re building a business AND the internal infrastructure simultaneously! Like most things, you take the good with the bad, just acknowledge every job, project gig has its bad.
I realize these five points only scratch the surface and to be clear… this is the path I love and the one I plan to continue. Climbing the ladder wasn’t for me, but it by no means makes it wrong… just as launching your own company isn’t THE measure of a good business person.
To me, it’s about personal choice. I will not stop encouraging people to flesh out their ideas and leave their j-o-b’s (when appropriate), but if you do choose this path just know it’s not perfect. While, I don’t want to take away or downplay all the fun of being an entrepreneur (it still rocks for me and many others), but try reading Dave’s post before taking the plunge. (Warning: his words sting.)
Finally, what misconceptions have you heard, been told or encountered? I know there are many, so please share them with everyone in the comments.
