PERSONAL FINANCE: Why you shouldn’t go into business

Do you want freedom, money, prestige and fame? Then perhaps business is not for you. PHOTO | FILE

What you need to know:

  • Running a business will test your character for a reason.
  • There are so many things you will go through that only your character will get you out of.
  • Your business will not be sustainable or grow if you get into the habit of using money badly or not being able to plan properly.

Do you want to start a business? Are your reasons valid? Many people have gone into business then realised that they went into it for the wrong reasons. Imagine climbing a steep hill because there is a reward at the top of the hill, then when you do get to the top of the hill, you realise that the reward there is not the one you wanted. It would mean that you climbed that steep hill for the wrong reasons. Let me save you the heartache when it comes to starting your own business. Make sure you are aware of what the reward looks like. These are the reasons not to go into business.

 The first and obvious one is to make money quickly. Do you know what happens to the majority of people who win money quickly i.e. through gambling, lottery, quick deals etc? They lose it just as fast. They were not ready for the money. There is no shortcut to the process of wealth creation. The process exists for a reason – to build character. Character sustains wealth. The other shortcuts do not. The same reason you gambled is probably the same reason why you will spend money recklessly. Running a business will test your character for a reason. There are so many things you will go through that only your character will get you out of. Your business will not be sustainable or grow if you get into the habit of using money badly or not being able to plan properly.

To impress. Many people have looked at entrepreneurs who have been there 20 years and want the same recognition, influence, status, possessions and whatever else they perceive as impressive. And they want it instantly. Before all those nice things you think you will get, you will go through a very unimpressive stage. Talk to real business people and what they have gone through. You may hear stories of inability to pay rent, being auctioned, losing clients, losing good employees, not being able to hire, sleepless nights, dreading phone calls from the bank, scary tax audits, etc. The nice things about running a business that you perceive from somebody else’s situation is built on the backbone of all this other stuff. Over and above that, if the goal is to impress other people you will never arrive. Many people in business rush to look like they are doing well to the detriment of the business. They buy flashy cars with their capital. If that is the symbol of doing well, there will be another model of car out soon, and your car will no longer be impressive so you have to upgrade and keep upgrading. Then the business becomes a short-term vehicle to support impressing other people. Not worth the effort.

 

To copy what someone else did. I have a friend who is in the beauty industry. Somebody has recently tried to copy her business and even hired almost all her employees. Though it is definitely causing some strain in her life there really is no comparison in the two businesses. This other copycat business lacks the professionalism, structures and brand that my friend has spent the last seven years putting up. When you copy somebody else you underestimate what it takes to do what he or she does. You have to have your own plan, strategy, ideas, and purpose. This does not necessarily mean that you have to come up with revolutionary product or service. Two separate businesses can be selling the same product or service but appeal to different markets, have different strategies and a different culture. That’s why we can have several brands of supermarkets.

 

To be your own boss. Many people envision spending copious amounts of time on golf courses because they are their own bosses, or sleeping in every day. No one may tell you what to do but to make it work, you cannot have that boss mentality. You have clients who need to be happy with your product or service, taxes to be paid, a team to lead, suppliers to build relationships with. Don’t count on whiling your time away on the golf course immediately. If anything, you will work harder than you have ever worked.

 

Because you know it all. You don’t. Running a business is like being in school all over again. You will understand how much more you need to learn and some of it you will inevitably learn on the job. Leadership, money management, marketing, sales, building relationships, handling a crisis, managing a team, tax, etc. Entrepreneurship does not follow rules so you do need to think outside the box.

 

Now that we’ve gone through some of the reason not to go into business, next week let’s uncover why you should actually go into business.

 

Waceke runs coaching programmes on entrepreneurship at Centonomy. To sign up, email her at [email protected]| facebook/centonomy