entrepreneurialism: challenges may be larger than they appear

This article has made the rounds a few times over the last several years, and it’s important that it does.

The true impact of “the entrepreneurial life” is becoming more clear – from tech to media celebrity to “mom-and-pop” operation – the difference between having a job and starting running a business is extreme. We do little as a society to help people understand these differences before they head down a long and challenging path that includes severe, and sometimes catastrophic costs.

The data I have seen are still dominated by cases of success – at least in some form. Statistics published by the Small Business Administration suggest that startup survival – across all industries – may be as low as 4.5% in my state.

So:

• Know what you’re signing up for before you begin. Entrepreneurialism is NOTHING like it says it will be in the brochure.
• Learn as much as you can with small, fast, low-cost experiments. Lean and MVP are more than mantras – they are processes with defined steps – most people I have seen want to get through the process without taking the time to understand it.
• Build your support team. If you’re heading down the solo founder path be EXTRA sure you know what you’re getting into – there is strong evidence (Ernesto Sirolli has some nice summaries) suggesting that NO ONE has all the skills necessary to do it on their own. Find co-founders, a support group, mentors, coaches (REAL coaches) – whatever it takes to keep you safe and sane.
•  Watch your personal runways – physical, emotional, and financial. It’s important to have some sense of where you are and how much further you can go – this is a BIG place that having the right support system can help.
• Realize sometimes you have to stop. We all want the huge success, the big exit, the ultimate payoff – but as we already established, that’s the EXCEPTION. There is another successful exit point that often gets overlooked. That’s when you have burned 10% or less of your personal runways and learned that you don’t have a business, instead, you are digging a hole you keep filling up with money, frustrations, and effort. Success, in this case, is PUTTING THE SHOVEL DOWN and moving on to the next thing.

Jim Collins talks about “getting the right people in the right seats on the right bus”. It’s useful to remember that not every bus is headed to be the next Google and not every seat is the driver’s seat.