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What are the risks to becoming an entrepreneur?
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Ralbert’s Answer
Hi Bryce,
In my opinion being an entrepreneur is one of the most satisfying professions you can have. The risk can be easily researched on google. More importantly, my advice for you is to go for it full force while you are young. Don't let risk create fear in your mind. "Editing, Social Media, and Crypto" are all fantastic things to be interested in.
In my opinion being an entrepreneur is one of the most satisfying professions you can have. The risk can be easily researched on google. More importantly, my advice for you is to go for it full force while you are young. Don't let risk create fear in your mind. "Editing, Social Media, and Crypto" are all fantastic things to be interested in.
Updated
David’s Answer
As a person who is firmly not an entrepreneur, I can tell you why I'm not!
If you work for a company as an employee, you get a steady paycheck and many things are arranged for you, like office equipment and space, benefits like healthcare, retirement plans, etc. You perform a specific function, and there are other people performing other functions, rolled into one organization.
As an entrepreneur, you are basically "on your own" to figure these things out, including where the money will come from! What is your business idea, and will it make money? You need some initial investment funding to get things going--will that come from your own savings from previous work, or will you find investors? You'll need to have a business plan and make a "sales pitch" to investors to garner their interest and willingness to put their money in your hands for the chance to get more money back. "Sales" and persuasion is certain skillset--some people are good at it but many are not! How will you market or advertise to bring in customers? You have to convince them what you are selling is worth forking over their hard-earned money--"sales" again. If you progress further, you'll need to hire people to do some of the work, and now you are the employer!
Some people find the entrepreneur life quite exciting and gratifying. You get to be your own boss, figure out every detail from start to finish, and the rewards--or losses--come directly from your own efforts.
If you work for a company as an employee, you get a steady paycheck and many things are arranged for you, like office equipment and space, benefits like healthcare, retirement plans, etc. You perform a specific function, and there are other people performing other functions, rolled into one organization.
As an entrepreneur, you are basically "on your own" to figure these things out, including where the money will come from! What is your business idea, and will it make money? You need some initial investment funding to get things going--will that come from your own savings from previous work, or will you find investors? You'll need to have a business plan and make a "sales pitch" to investors to garner their interest and willingness to put their money in your hands for the chance to get more money back. "Sales" and persuasion is certain skillset--some people are good at it but many are not! How will you market or advertise to bring in customers? You have to convince them what you are selling is worth forking over their hard-earned money--"sales" again. If you progress further, you'll need to hire people to do some of the work, and now you are the employer!
Some people find the entrepreneur life quite exciting and gratifying. You get to be your own boss, figure out every detail from start to finish, and the rewards--or losses--come directly from your own efforts.
Updated
Suvebah’s Answer
There are five kinds of risk that entrepreneurs take as they begin starting their business. Those risks are: founder risk, product risk, market risk, competition risk, and sales execution risk.
Founder risk considers who the founders of the company are, if they get along, and how they will work for the company.
Product risk takes into account the engineers creating new product for the business and how they will recruit other product engineers.
Market risk looks at the problem you’re solving with your product and how consumers will react.
Competition risk looks at how you differ from other similar organizations and companies.
Sales execution risk helps you look at how to sell your product to consumers by presenting them a solution to their problem.
All of these risks are crucial elements to preparing to start your own business. Being an entrepreneur means being willing to take a look at these risks, and decide if this calculated risk looks like a good idea for your organization. Then, being willing to take the leap.
Founder risk considers who the founders of the company are, if they get along, and how they will work for the company.
Product risk takes into account the engineers creating new product for the business and how they will recruit other product engineers.
Market risk looks at the problem you’re solving with your product and how consumers will react.
Competition risk looks at how you differ from other similar organizations and companies.
Sales execution risk helps you look at how to sell your product to consumers by presenting them a solution to their problem.
All of these risks are crucial elements to preparing to start your own business. Being an entrepreneur means being willing to take a look at these risks, and decide if this calculated risk looks like a good idea for your organization. Then, being willing to take the leap.
Updated
Nicole’s Answer
Being an entrepreneur is fun and exciting and can have big rewards. One of the risks is that it can be unpredictable. I worked at a very small start-up in college. Was an amazing experience and I learned a ton, however, the company did not take off. Another risk is financial, our pay was minimized and we had stock options (that could have been worth a lot) but with the company not taking off they ended up not being worth much.
I appreciate this, thank you for the advice.
Gürsel