The world-famous “Think Different” ad campaign from Apple pays tribute to the misfits and rebels who change the world. Entrepreneurs belong to that same class of folks—those who change the status quo. Their names are legendary, and their successes are celebrated. Quite naturally, ambitious people gravitate towards entrepreneurship.
One of the big problems with blindly following the media narrative is the existence of a strong survivorship bias. Only public successes are celebrated, while a majority of start-ups will fail. A report by the International Finance Corporation (IFC) estimates that about 20% of small and medium-sized businesses in India fail within their first year of operation. 60% of them fail within their first three years.
Given these statistics, should you even consider entrepreneurship as a career option? But first – let’s bust some myths:
Entrepreneurs are born, not made: This myth suggests that entrepreneurs have a natural talent or inclination towards starting and running a business and that it cannot be learned or developed over time. However, research shows that successful entrepreneurs often acquire skills through education, training, and experience.
Entrepreneurs take big risks: While starting a business does involve some level of risk-taking, successful entrepreneurs are often strategic and calculated in their approach to risk. They do their research, test their ideas, and take calculated risks that are informed by data and market insights. In fact, if anything, successful entrepreneurs think a great deal about risk and work to mitigate potential negative outcomes.
Entrepreneurs are all young and tech-savvy: While it’s true that many successful entrepreneurs are young and tech-savvy, there are also many successful entrepreneurs who are older and come from a variety of backgrounds and industries. The key to success in entrepreneurship is not age or tech-savviness, but rather a combination of passion, perseverance, and a willingness to learn and adapt.
Entrepreneurs are in it for the money: While making money is often a key motivator for entrepreneurs, it’s not the only reason they start a business. Many entrepreneurs are driven by a desire to solve a problem, make a difference in their community, or create a product or service that they are passionate about. As Steve Jobs famously said, “I’m convinced that the only thing that kept me going was that I loved what I did. You’ve got to find what you love.” If money is the sole motivator, a would-be entrepreneur will bail at the roadblock. In order to be in the game for the long run, you must first find your WHY.
Success is all about having a great idea: While having a good idea is certainly important, it is far from the only factor that contributes to entrepreneurial success. In fact, many ideas are not good businesses. You must dispassionately examine your idea through three lenses:
Desirability: Do people even want what you are offering? Remember, they don’t want your product or service – they just want a job to be done.
Feasibility: Do you have the wherewithal to provide the desired product or service or do you need to partner with other entities
Viability: How will the entity make money in order to survive and thrive?
Once you’ve mapped these out, you must discover and validate any implicit assumptions. These can be done very quickly and inexpensively. Finally, execution, persistence, and adaptability are all critical factors that can determine the success or failure of a business.
You need a lot of money to start a business: Money is necessary, but many successful entrepreneurs have started with very little money. The key is to focus on creating a lean and efficient business model and finding creative ways to fund your business. There are legions of stories of over-capitalised businesses failing, while lean and hungry businesses thrive in the same environment.
Entrepreneurs work 24/7: While starting and running a business can be time-consuming and require long hours, successful entrepreneurs also prioritize work-life balance and know when to take a break. Burnout is a real risk for entrepreneurs, and taking care of one’s physical and mental health is critical for long-term success.
Should you quit your job and work on that idea that has been marinating in your brain? You should first test the waters. First start your idea as a side project, while still employed. This gives you the opportunity to test out the idea and see if it has potential.
Ensure that your idea, industry or potential clients do not intersect with your primary job. Once you’ve completed your primary job function, you should work on your side hustle.
Attend networking events where other entrepreneurs and investors gather. This gives you the opportunity to meet people in the industry and get feedback.
Join an accelerator program. Accelerator programs provide entrepreneurs with resources and support to help them launch and grow their businesses. Look for accelerator programs in your area and apply to join.
Work at a startup. It gives you a feel for all the dimensions involved in running and scaling a venture.
Become an intrapreneur. Many large organisations are recognising the value of entrepreneurial traits: initiative, perseverance, innovation etc. To harness these skills, they are creating internal innovation groups. Try navigating your way into one of these groups in order to
learn and apply design thinking skills
build and scale ventures
influence across the organisation to accomplish goals
Regardless of the path you choose, hang on to your deep passion. After all, people who are crazy enough to think they can change the world are the ones who do!
(The author is a global social entrepreneur)