“A ship is safe in harbour, but that is not what a ship is built for’’-William H.Shedd.
Playing safe is the easy and comforting way. To an entrepreneur, however, risk is the life blood of success. Creativity and progress aren’t possible without it.
Why climb the mountains through hardships when you can live a peaceful life on the plains? Yes, the plains may be safe and serene but climbing the mountain has its own joy. It adds zest to life. To tread the adventurous mountainous path is not easy but overcoming the dangers and reaching the peak fills one with ecstasy and confidence.
This is analogous to the choice between a stable job and choosing entrepreneurship. It is a difficult choice indeed as a stable job has its own perks.
The advantages of a stable career, on one hand, are that people have a well-organized present and a well-planned future. They have a scheduled and somewhat predictable routine. On the other hand, the disadvantages could be that people can get bored easily and this can lead to a loss of enthusiasm towards their work. Also, there is a minimal chance of growth followed by growth stagnation.
Now coming to the journey of an entrepreneur. It is full of uncertainties and risks; ups and downs.
The challenges that an entrepreneur might face would include:-
1. Lack of a holistic team
A team should have:
a) Someone who understands how to build technologies, basically a tech geek with a knowledge of how technology works.
b) Someone who knows how to manage the existing team members and hire quality employees who would go on to become assets for the start-up/company.
c) Someone who understands how to sell/market the idea to the masses or to potential investors and consumers.
d) Someone who has a clear understanding of the logistics, operations and has a good knowledge about the potential competitors.
A team must be a culmination of people having diverse qualities and skills.
2. The sustainability of the idea/product
a) Sometimes an idea may seem revolutionary and might become the ultimate rage. But sometimes rival companies may come up with products or ideas that can steal the spotlight. For example- Nokia and Blackberry lost their loyal customer base to the iPhones and Android devices. So one has to be well –equipped and prepared to deal with such situations.
b) Also, it is very important for a start-up to keep improving and modifying with time. Thereby, going hand in hand with the technological advancements. For example –Motorola was the biggest manufacturer of the pager but soon companies that started manufacturing mobile phones took over the market.
3. Profit and Loss
One of the fundamental reasons why people choose a stable job is because their salaries are fixed and relative company losses do not affect their pay. But when one has his own venture, incurred losses affect his revenue generation directly. In such cases the employees have to be paid the same irrespective of the loss; here the employer must suffer the consequences. Things can go horribly wrong or perfectly well. It all comes down to profit and loss which keeps an entrepreneur under constant pressure.
In such cases the employees have to be paid the same irrespective of the loss; here the employer must suffer the consequences. Things can go horribly wrong or perfectly well. It all comes down to profit and loss which keeps an entrepreneur under constant pressure.
The selection of inappropriate pricing, publicising, or a distribution strategy can pose to be quite the downer. Also selling luxury items is suitable only for certain strata of the society and is not ideal for less developed nations.
5. Taking the first step
The initial phase of a start-up is always the toughest.
- Finding the right investors and the desired investments.
- Assembling the dream team.
- Narrowing down on the final idea/product.
- Finding a positive work environment and the perfect workplace.
Hence the life of an entrepreneur is not all rainbows and sunshine. It is challenging and it needs a great deal of courage, grit and perseverance to strive and thrive against all odds.
Are you an entrepreneur? What are the challenges you face during your journey?