Reasons Not to Become An Entrepreneur

530,000 new businesses are created each month in the U.S. Why not yours? There are many good reasons to become an entrepreneur – you get to choose your own hours, can work a flexible schedule and have your own independence, but there are also some very good reasons not to become an entrepreneur and would be entrepreneurs should equally consider the pros and cons of entrepreneurship before investing their life savings into being an entrepreneur. I’ve interviewed several entrepreneurs, previously supervised an entrepreneurial training program and conducted some research to compile this list of reasons not to become an entrepreneur.

Do Not Become an Entrepreneur if:  You want to get Rich Quick

Most businesses lose money in the first couple of years and coupled with the hours you will be putting in; it’s quite likely you will be making less than minimum wage for the first few years at least. Furthermore, on average, entrepreneurs make between $30,000 to $40,000 (Source: Are Entrepreneurs Happier than Wage Slaves?) which isn’t exactly enough to make you rich. From my own experience, I’ve been writing part time for the past seven months and am just starting to see small returns, which means that to date; I’ve averaged a few cents per hour, which is a long cry from minimum wage.  Still want to become an entrepreneur?

Do Not Become an Entrepreneur if: You Want to Work Less Hours

In the beginning you’ll likely be working more hours than ever before since you’re now in charge of sales, business development, new product development, marketing, advertising, accounting, administrative duties and of course everyone’s favourite, janitorial duties, just some of the joys of being an entrepreneur. Only 21% of new businesses hire someone else initially (Source: What's Behind Small-Biz Failure Rates?), so as CEO/Owner, you get to wear all these hats which I’m assured by all the entrepreneurs I interviewed results in more hours than they’ve ever worked as a salaried employee.

Do Not Become an Entrepreneur if: You Want to Work Flexible Hours

If you’re working 80+ hours a week, which seems the average of the entrepreneurs that I interviewed, that doesn’t give you a lot of opportunity for flexible hours since you’re pretty much working every waking minute. I have a friend who has had his own property management company for several years and was called by the police regarding a tenant complaint while his wife was in labor. As soon as the baby was born, he had to resolve it since it was a serious issue. Why? Because there was no one else to do it but him. The property manager had quit the previous week which really wasn’t convenient when you’re about to have a baby, but employees are not always concerned with what’s convenient for you and the work falls to you if you are a small company. I know another entrepreneur that eventually gave up her landscaping business because she was working such long hours in the summer that she had no time to do gardening in her own yard, which was something she was passionate about.  Once your business is successful, which will hopefully be several years after you've started it, being an entrepreneur can offer flexibility in hours worked, but there's not much flexibility for the first few years.

Do Not Become an Entrepreneur if: You’re Not Disciplined

Being an entrepreneur requires discipline since there is no one but you to set your work schedule or deadlines. This is one of the benefits of being an entrepreneur; you can do things when you feel like it, but is also one of the downsides. Think how many times you don’t feel like going to work but do anyway or you would lose your job. Now there’s no one to stop you from watching soap operas in the afternoon and before you know it a whole day has passed with very little work, so this a critical factor to consider.

Do Not Become an Entrepreneur if: You Give Up Easy

We’ve all heard the disheartening statistics of small business failure rates, 55% failure rate after 5 years, 70% after 10 years (Source: Small Business Trends.) which may make you wonder why anyone would want to be an entrepreneur in the first place when the rate of failure is very high. When I interviewed entrepreneurs I asked them what was most difficult about being an entrepreneur and one of the things that came up repeatedly is to not give up and just keep going. One entrepreneur reflected that giving up too early likely contributed to the high failure rates, that entrepreneurs gave up before something great happened because it can be incredibly frustrating sometimes. I can relate, as I count the pennies (literally) that I made in the first few months of writing, then in the past month, just when I was ready to give up, I earned more than I’ve made the past six months combined. We’re still not talking about a lot of money here, but at least its progress. If you are the type to give up easily, it is almost guaranteed that your business will fail since you will give up when it gets tough, and it definitely will get tough, so be honest with yourself as this is a critical key to being an entrepreneur.

This article is not meant to discourage anyone from being an entrepreneur, I know some entrepreneurs that absolutely love what they do and wouldn’t have it any other way, and it’s something that I see myself entering one day, but it is meant to give you a realistic view on what being an entrepreneur means so that you can enter the exciting world of entrepreneurship with both eyes open and increase your chances of becoming a successful entrepreneur.  I wish you much success if you choose to become an entrepreneur.