What’s up with entrepreneurship?

What’s up with entrepreneurship?

 
 
  BizTekPinoy
By JAIME GARCHITORENA
 
 
 
 

Ok Ill admit, I’m an AM radio junkie and lately I’ve been hearing a lot of talk about the great virtues of being an entrepreneur.

 
 
 

Ok Ill admit, I’m an AM radio junkie and lately I’ve been hearing a
lot of talk about the great virtues of being an entrepreneur. For the
most part, I have to agree that anything that encourages the average
Pinoy to have any sort of additional income or financial fallback is
always a good thing and it is true that entrepreneurship does help the
country provide additional revenue in terms of taxes and temporary
employment. But since I also believe in full disclosure here are my
thoughts on some of the things I’ve heard about being an entrepreneur.

Buying a franchise is an easy way to start your business.


Lots of consultants sell franchising as the small business owner’s
easy entry into the world of entrepreneurship. But easy entry doesn’t
mean less risk. While your chances of success may be slightly higher
than if you started the business on your own, it’s no guarantee.
Another thing; if you ask me, any franchise that has less that 5
company owned franchise outlets shouldn’t be allowed to sell their
concept. In my mind the master franchisee should have enough experience
with different selling environments/scenarios to be able to say with a
reasonable amount of certainty that their concept can be replicated and
somehow I don’t think that a concept with less than 5 outlets has
enough experience in logistics, storage, human resource management, and
other aspects of the business to sell the concept to another person.
Aside from this, see how well the master franchisee has done with the
business you are about to buy. Since the master franchisee is to be
your ultimate resource in the success of your venture the bottom
line-he’s got to know more a lot more than you-and he’s got to be able
to show you the money.

As an entrepreneur, you’ll have more time for yourself and your family.

If you consider being at home most of the time as the definition for
having more time (assuming it’s a home-based business – as most
startups are) then that’s probably true. But the truth is, if working
as an employee took 8 hours a day of your brain space then be prepare
to have work on your mind 24 hours a day. That’s because this time its
your money on the line (or heaven help you if its borrowed money), its
your brother in law that you may have to fire ( and he lent you some of
that money), all while wondering where you’re going to get next week
salaries to pay your cousin that couldn’t get a job at a fishball stand
if he tried( it was a favor to your mom). Being an entrepreneur is a
way of thinking and living. So instead of life getting easier, be
prepared that life may get a bit hairier. But hey, in exchange for all
that aggravation you get a shot at financial stability and self
determination.

Most entrepreneurial ventures WILL FAIL!

Lets face it, original ideas are rare, if it’s a good idea
competition will be fierce, and even if you do get an good and original
concept be prepared that from the moment you set it up someone else
with more resources can take it away from you. So there’s the awful
truth- the high rate of failure and not because they all grow and
become roaring successes is the reason why entrepreneurial ventures
create so much financial churn in the economy.

Ok…now that some of the dirty little secrets are out, let me give you some advice:

1. Choose a product that you like or have a greater than average knowledge of. This keeps you ahead of the curve.

2. Never commit to the business more time or money than what you
have. This makes sure that the business you choose wont force your hand
in terms of cash or time.

3. Be ready to LOSE but be ready to LEARN. The basic principles or
running a business are the same NO MATTER WHAT THE PRODUCT. This means
that running a business in an educational experience, win or lose. The
trick is to always learn and eventually win.

4. Don’t quit your day job. Success is a good mix of product,
experience, luck, and timing and it may take a while before the whole
thing comes together. An entrepreneur can nurse their small businesses
while having the security of having a steady source of cash. If
everything goes right, there will come a time where your income from
the business will match or exceed that of your regular job. At that
point, you will have the opportunity to decide to choose one over the
other or to keep them both!

In the end remember that entrepreneurship is not for everyone, and
don’t be embarrassed if it’s not for you. But don’t be afraid to try it
either. As long as you stay within the confines of what you can afford
to lose then ultimately it should serve as learning experience that you
can apply even within the context of being an employee.

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