The Benefits and Challenges of Entrepreneurship
Forget the white picket fence, entrepreneurship is the new American dream! Advancements in technology have made it possible for anyone with an idea to create and manage a business from the comfort of their home. Whether it is to pursue a passion, escape the nine to five, or enjoy autonomy, the reasons why Americans start businesses are as varied as the entrepreneurs themselves. And once freedom is tasted, many never look back.
However, entrepreneurship is not for everyone. Many run towards its sparkly veneer without considering its realities. About 20% of new businesses fail within the first year. On the flip side, many would-be successful entrepreneurs never take the plunge out of fear of these statistics.
Taking an honest look at both the challenges and benefits of entrepreneurship is an essential step for anyone who has thought of starting a business. It allows prospective business owners to take calculated risks and develop a long-game approach to their efforts. Read our list below to get a better sense of whether or not entrepreneurship is right for you.
The Challenges of Entrepreneurship
While unhealthy fear keeps many people trapped in the status quo, it is equally injurious to set out on an endeavor without first “counting the cost.” Realistically considering the difficulties of entrepreneurship may give you the courage to take that next step since you will know what challenges you might encounter. It can also help you to know whether or not starting a business is right for you at this time. Remember, even if you realize entrepreneurship is not for you (or not for you right now), gaining that knowledge is part of your journey.
The following is a list of 5 common challenges entrepreneurs face.
Challenge: No Set Salary
As monotonous as some 9-5 positions can be, they do provide a stable salary and benefits. It is much easier to plan for the future, know when to go on vacation, and to make housing decisions when you know what you have to work with. The security that comes from knowing what you are bringing in and when you’ll get it is a warm blanket many people don’t realize they have until it is gone.
When you are in business for yourself, you have no guarantee of earnings. Even if you rake it in one month, you have no way of knowing if that level of prosperity will continue. You may think you’re doing something wrong when you encounter a natural, seasonal slump. For those who’ve never worked for themselves before, the stress of experiencing these uncertainties may come as a shock. While doing research, talking to other entrepreneurs, and hiring a business coach can help you to better understand and walk through these realities, it is good to consider this aspect of entrepreneurship in advance. Having personal savings and a supportive network may help you have more peace as you get things off the ground.
Challenge: Time Management
For those with annoying, micromanaging bosses, getting to be their own boss might sound like a golden dream. That said, it’s often not until after a person flies solo they realize just how integral that past boss was in helping them to get things done.
As wonderful as it is to get to pick your own hours, take breaks with your family, and determine your schedule, this freedom can be more difficult to manage than most realize. Without someone else calling the shots, it’s up to you to motivate yourself, and keep to your deadlines. Prospective business owners who have never considered their own time management techniques may be surprised to find the days fly by and they have nothing to show for their work. They may feel lost in a fog of tasks and have no idea how to prioritize or manage their responsibilities, especially since friends and family may expect more from them now that they don’t have a “real job.”
Time management apps such as Honeybook exist to help you manage time and find workable, streamlined solutions; however, if you don’t consider possible time management struggles in advance, you may be in for a rude awakening and not know when or where to seek assistance.
Challenge: Motivation
On your first day as an entrepreneur, chances are you’ll bounce out of bed with a pep in your step, excited to see who your first clients will be and when you’ll be able to take that first trip to Europe. But what about when you reach business day 1,001 when sales are tanking and you are so bogged down in logistics you don’t see how you could take off for a few hours much less a few weeks?
In traditional work settings, the CEO is responsible for driving motivation and for getting the business through hard times. When you’re in charge, there’s no one higher up where you can pass the buck and there’s no threat of being fired to keep your morale up through rough patches. Many entrepreneurs fail simply for a lack of drive or energy to push through rough times.
Thankfully, mastermind groups, motivation apps, and business coaches are available to assist you. Today’s digital technologies allow you to construct your own “team” to help support and motivate you. However, if you’re expecting to feel constant drive and energy from day to day, you’re likely to become disillusioned and to not seek the help you may need.
Challenge: Isolation
Many entrepreneurs, especially those who own small, digitally-run businesses, work alone. While this may be refreshing at first, you might find yourself missing Talkative Tim interrupting you at the water cooler. When your only conversations are with clients, you might start to feel alone at the helm and tire of being the only person to make all of the decisions. Since humans are social creatures, working in isolation can lead to burnout and depression.
As with the other mentioned challenges, solutions for this aspect of entrepreneurship exist (e.g. co-working spaces, online groups, hiring a VA, finding outlets for connection, etc.,), knowing whether or not isolation may be a factor for you will help you to put some of these into place before you start your new job.
Challenge: Planning for Success
While many entrepreneurs have a valuable skill or service offering to give to the world, they may know nothing about running a business. Regardless of its niche, operating a business involves managing finances; developing templates, documents, and deliverables; and short and long term planning. Many people do not realize this when they leave their 9-5, and so suddenly find themselves drowning in a sea of tasks for which they are not equipped and with very little time to develop the skills and services they planned to offer.
Understanding what will be required of you in advance will help you to know which skills you may need to develop or to look for a virtual assistant if you decide to outsource tasks.
The Benefits of Entrepreneurship
When it comes to entrepreneurship, it is important to assess challenges so they can be faced realistically. That said, stopping with the challenges only paints half the picture. Everything good in life has its challenges, and challenge is not a sign something should not be done or your biggest dreams aren’t waiting for you on the other side.
Below is a list of 5 benefits of entrepreneurship. As you will see, the very things listed as challenges above are also some of the biggest blessings in the business.
Benefit: No Set Salary
While the fact that entrepreneurs have no set salary can be a challenge, it is also one of the biggest benefits. There may be no floor for how little you can make, but this also means there is no ceiling. When you’re an entrepreneur, you can make as much as you want to or are able to! In some cases, you may be able to double or even triple the salary you had before you left the office.
Rather than needing to wait for a promotion or to seek a job transfer to make the amount you want, you can take your life into your own hands and strive to earn the amount that will support the life you want to have. And while it may take hard work to get there, you can feel good knowing all of your hustle and grind is coming back to you (rather than to company profits).
Benefit: Time Management
It is true that entrepreneurs must manage their own time, but that also does not have to be a setback! Even if you need to develop a few skills or embrace a learning curve, there is much to be said about owning your own time. Since you are in charge of your calendar, you can block off time to go to your daughter’s softball games or visit the chiropractor during the day. You could sign up for an afternoon yoga class and finish your work in the evenings, or spend an entire weekday with your aging mother and then catch up on work later over the weekend. Life is short, and so much of our modern lives is spent working; entrepreneurs are able to construct their days in such a way that ensures they don’t miss what is important.
This doesn’t necessarily mean you’ll work less hours, but you can space out your hours and make sure you get to the things you want or need to do. You can also save time by avoiding useless meetings (since you get to decide if a meeting needs to happen or not).
Benefit: Location, Location, Location
Getting to work wherever you want is one of the perks people most commonly associate with entrepreneurship. Today’s “modern nomad” is popularized on social media platforms and blogs, and it is true you can set up a mobile office on the back of your Volkswagon if you want to. When you’re your own boss, you can work from anywhere. Depending on the type of business you run, a home office, local coffee shop, hotel lobby, vacation destination, or a relative’s house can all function as your new cubicle. Many entrepreneurs find they like to mix up their workplaces or go to different locations to perform different tasks. Perhaps one day you’ll want to dress up in business casual and work behind your desk, while another day you’ll work on the couch in your PJs. Having the ability to work wherever you want may infuse your senses of freedom and being alive.
Benefit: Personal Growth
Entrepreneurship should be synonymous with “growth potential” because it will definitely help you to grow. Whether from overcoming challenges or learning to manage your newfound freedom and wealth, you’ll develop intrinsic and extrinsic skills. Like it or not, entrepreneurship will bring everything out of you: confidence, leadership skills, fears, and weaknesses. While this exposure might feel vulnerable to some, it is invaluable to those who understand humans are always growing and changing. indeed notes “Entrepreneurship requires constant growth. You have to be able to adapt as your business expands or the market shifts.” Whether you are someone who battles with self-doubt or someone who simply wants to avoid stagnancy, being your own boss will definitely force you to grow, develop your self-awareness, and make you stronger. These benefits are ones money can’t buy.
Benefit: Self-Actualization
While it is very much possible to feel fulfilled in a 9-5 position, it is true many Americans today feel stuck in their jobs and their lives lack purpose. Many people have ambitions and dreams burning inside of them they feel incapable of acting upon. Choosing to be your own boss is one way to take charge of your life and work towards being the change you want to see in the world.
For some, this looks like offering a skill or a service that is lacking in the world. For others, it looks like creating a working life in line with their beliefs. When you’re an entrepreneur, you can live life on your own terms and can align with others who share your values and your vibe. If you encounter a toxic client or working relationship, you can make choices to end those connections and save your health and the health of your business. Best of all, you can feel the sense of pride that comes from looking back on your journey and knowing you made these changes for yourself and will continue to do so as you grow into your highest self.
Final Thoughts
While entrepreneurship may seem glittery on the surface, it comes with its own set of challenges. Understanding these at the outset will help protect people who should not be entrepreneurs from giving up job security and will free those who should be entrepreneurs from the unnecessary fears that are holding them back.
Rather than shying away from the risks, possible business owners should assess them for the purpose of planning how to overcome them so they can enjoy the many benefits entrepreneurship has to offer. Success may not come right away, but for those who can be patient and who are dedicated to personal and professional growth, entrepreneurship may be the doorway into the good life.
WRITTEN BY: KATIE BARNETT
