Have you always been inspired by that old childhood friend or classmate with his own business? Or that successful niece who got a small business off the ground and now never wants to do anything else? Two in three Dutch people aspire to be their own boss at some point in their lives. At Kenneth Smit we understand that all too well. Entrepreneurship is a wonderful, albeit very difficult, profession. A challenge that appeals to many. But few dare to take the step. Entrepreneurship is not for everyone, and so the fervent desire is often put on the back burner. Postponement is adjustment. The entrepreneurial fire is still burning in you, but if you have not dared to take the step, then this blog is intended for you.
What makes entrepreneurship so difficult?
People have different motivations for going to undertake. Nowadays, not being able to find a job is also regularly used as an argument for starting a business. Often without success, because entrepreneurship involves a lot. However, it usually starts with an idea. The sacred belief that you have come up with something that is not yet there, or that can be improved. That idea, that's the beginning. Persevering with stubbornness, no matter what others say, that is what characterizes the real entrepreneur. As a starting entrepreneur, you sometimes wish you had a crystal ball to see into the future: will my product or service be a success or not? Unfortunately that is not possible.
As with any new adventure, the first years are the hardest. Less than 50% of starting entrepreneurs are still active with their business after 5 years. This clearly shows that entrepreneurship is not easy. The biggest difficulty factor is the fact that you have to be a true jack-of-all-trades. And that's very few people. Some are great at programming, creating a brilliant product or providing top-notch advice to companies. But that is not enough. An entrepreneur must be a director, salesperson, marketer, producer, consultant, accountant, employer and so on at the same time. So you have to be a generalist, or gather the right people around you.
Pitfalls during the first years
So the beginning is the most difficult. You usually start from scratch and have to build everything yourself. You have to recruit your customers yourself, you have to set up your administration yourself, you have to arrange your marketing yourself... and so on. It is logical to ask yourself during this first period whether you are doing the right thing, but there are obvious obstacles that you can avoid. Below is a list of pitfalls that you can avoid in advance.
Too weak financial basis
Entrepreneurship is a profession that requires you to be persistent. Most entrepreneurs only start to book their first significant turnover after 9-12 months. Until then, you must be able to support yourself, as well as pay the people you may hire. Entrepreneurs often start with insufficient financial basis, which unfortunately means they cannot continue for long.
You forget your network
Your network is everything! Without a network, your customer base will quickly dry up. This part of the profession is enormously underestimated by many starting entrepreneurs. They focus on the product or service they offer, rather than on building a network.
You think about working less
Doing business because you want to take it a bit easier? Forget it! For the first 5 years of your company, you should expect weeks of 60 to 80 hours per week, unless you already have a lot of experience and an extensive network. Yes, you gain freedom, but that freedom is only limited.
You forget to acquire
You have scored a number of great projects and are working hard. Acquisition, that will come later. A logical reasoning, because the customer naturally comes first. However, this is very dangerous. As an entrepreneur you must continue to acquire continuously, otherwise at some point there will be an irrevocable standstill and you will be out of work.
You seize every opportunity
Another important capacity that makes an entrepreneur successful is his focus. When you are enthusiastic, which most entrepreneurs are, you see opportunities and possibilities everywhere. By diving into everything you run the risk of losing focus and ultimately coming out on the short end of the stick.
You want to do everything yourself
Entrepreneurs are often stubborn. Obviously that is an important and positive characteristic. However, if this translates into the fact that you want to do everything yourself based on conviction or cost considerations, then you may be in for a rude awakening. You can't do everything yourself. For example, quickly find a good accountant if you cannot spend your time on one yourself.
Not everyone is a born entrepreneur, but by taking the possible pitfalls into account and making sure you get the right help, you can learn to do it. Entrepreneurship is a difficult but also wonderful profession!
Doing business with Kenneth Smit
Would you like to do business with Kenneth Smit? We are looking for trainers with the courage to initiate changes in people and organizations. Do you want more information? Then check out the vacancy for trainer.