Top 5 Reasons to be an Entrepreneur
April 7th, 2006 by Matt InglotSomething that I am asked every couple weeks is “why entrepreneurship?”. This is a question that always makes me hesitate, and I’ve noticed that my reply is never exactly the same. Yet deep down I know it’s what I love and would do even if the world was topsy turvy and making a lot of money through entrepreneurship wasn’t possible.
Let’s examine the decision to be an entrepreneur. It’s a complex topic so I’m going to break it down into a few posts exploring the benefits, disadvantages, misconceptions, and motivation behind entrepreneurship. I recently read that lists are more likely to attract traffic and since I have neglected the blog this week let’s begin with what I feel are the top 5 reasons to be an entrepreneur:
#5 There is an Upside
There aren’t a whole lot of categories that most of the world’s rich fall into. Inheritance, real estate, and business are the main three as we learned in New Venture Creation at WLU. It’s hard to be born rich or inherit the family farm, but business unlocks a path to real wealth potential. Whether you build it up to a multi-billion dollar venture yourself or sell while it’s hot, there is definitely money to be made. But is it all about cash? That’s a topic for a future article.
#4 If You’re Bored You’re Doing Something Wrong
Running a business is an incredibly diverse “field” to be in. Through my ventures I have been exposed to incredible and interesting knowledge ranging from business fundamentals such as marketing, accounting, sales, and customer service to the importance of time management, goal setting, and even exercise. I literally view the world in a completely different light now than before I became involved in business. Everyday I find myself learning something new and being immersed in a different and new area. You can’t get much further from an assembly line than this.
#3 It’s More Satisfying than Roller Coaster Tycoon or Sim City
I’ve always enjoyed playing simulation games. While Doom was the hot item with most of my friends I really prefered Sim City and other empire building games. It’s an incredibly satisfying feeling to start with nothing and end up with something absolutely amazing. I believe in seizing this building attitude and applying it to life. Afterall why should I build a virtual company when I could apply the same concepts to real life? Treating life as a game may sound silly as first, but frankly I’m having a lot of fun.
#2 Thinking is Rewarded
Running a business may be hard work, but that’s certainly not what you are rewarded for. Often times burning the midnight oil is simply the bare minimum for entry into business. Your returns come from working smart, and the quality of your ideas and creativity are now directly tied into your revenue size. A single good idea can make you $10 000 in one hour while slaving away for 40 hours on a bad one can have virtually no return.
While working a regular job isolates you from the risk of no return on bad ideas, it virtually nullifies the incredible return on good ones. Imagine coming up with a way to save your boss $30 000. You’ll be lucky to get a $500 bonus, and in all likelihood you will receive nothing at all.
#1 Success is in Your Hands - A Whole New Job Security
Headlines constantly barrage us about the lack of job security in so many sectors. GM and Ford are both laying off masses of people. I’m only 21 and I have already been laid-off twice. I’ve also only ever been an employee twice. Having a job these days, even with a massive company, provides only the illusion of security. Why let your well-being depend on the decisions of a CEO, whose absolute #1 priority isn’t your future? Ensuring your own prosperity and achievement of your goals is ultimately the responsibility of one person and one person only - you.
We’ll even things out in the next entrepreneurship post when we discuss the multitude of reasons to not be an entrepreneur.
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April 8th, 2006 at 6:56 am
With respect to #2, I think that may be true at most companies, but not all. Great companies usually reward people and move them up the chain quickly. If you have the chance to work for a great company or an industry superstar, that is probably one of the few cases where you will learn more in a “regular job” than in running your own business.
April 8th, 2006 at 1:20 pm
People don’t realize that they don’t even have to start businesses to be entrepreneurs. People tend not to think about themselves as their own business. I view my career as my own business. Most of your list applies to me, and I don’t necessarily have my own company. It’s just me, and I work hard producing content and selling it. Whether it be my website, my writing, or some video production I’ll probably do in the future, they’re all just products.
As the job markets get more competetive I think that more companies will want to hire people with an entrepreneurial spirit. They’ll want to hire well-rounded people. It’s important that I can do video production, I can write, and I can speak japanese. All these things make me more attractive. It’s just like a business with multiple marketable services.
I wrote the first article on my blog about the concept of self-entrepreneurship, and a lot of what you wrote rings true even with me.
April 8th, 2006 at 1:28 pm
Hi Matt, got to your post via Reddit.
The fact is, your top 5 reasons to be an entrepreneur (’cause you want to be rich, you’re bored, it’s more fun than computer games or you can get fired if working for The Man) are not reasons:
They are jokes you tell your friends over a beer. They will smile, but off-course won’t be convinced. Your reasons won’t change the mind of anyone having already a job. A SERIOUS job.
There are plenty of jobs out there where your bonuses will be A LOT bigger than 500$. Where talent is rewarded, and where you might not get bored so easily. My guess is that, being 21, you still have A LOT of time to find those jobs.
But I’m digressing: I didn’t want to comment here to criticize. I just wanted to tell you the MOST important reason to be an entrepreneur:
Because you want to try this, you are young and you still can.
All well,
from a 25 year-old who quit his well-paid, safe and interesting job and decided to become an independent entrepreneur.
April 8th, 2006 at 2:34 pm
[…] Here's an interesting article about 5 reasons to be an entrepreneur. I agree with all of these reasons, but the list is hardly exhaustive. Some time soon I'd like to do my own list, but since I'm actually trying to do some work right now I'll write and post that later. […]
April 8th, 2006 at 10:56 pm
What has being young have to do with it?. “Because you can” is never a good reason for anything. I can jump off a bridge for example.
April 9th, 2006 at 6:22 pm
I agree With your reasons. Entrepenuership is the only way to go. Having a job, no matter how well you are paid or treated is not anything close to security. Being the highest paid one in a corporation just means that you have a target painted on you if things take a turn for the boss-man. Any wealth and security comes from creating it yourself. Good post.
April 11th, 2006 at 4:05 pm
Very interesting thoughts regarding entrepreneurship. I agree with most of what you’re saying. Working a corporate job isn’t the most satisfying job in the world. You get up, you work your 9-5 job and you go home; Wake up the next morning and start it all over again. You just wait for that weekend to come. I make a very decent living now, close to six figures, doing what I do, but I can’t really say I enjoy it. I can’t wait to get home from work and I can’t wait for the weekends to come soon enough. My problem is, it’s extremely tough to give up on this job due to the income and financial security that comes with it. I’m able to do what I want and buy what I want. I think I’d be much happier as an entrepreneur but I have yet to make that leap and give up everything I have now. I need more convincing. I need someone to tell me, “Just do it!”
April 12th, 2006 at 8:25 am
I like to always look at things in the long-term. Money, especially six figures, is really nice. But how happy are you going to be with that six figures 10 years from now? Would entrepreneurship make you happier? What if it meant a pay cut? What is the worst case scenario if your first business flops? Can you return to a corporate job? Can you start a second business?
I firmly believe that when it comes to starting out a daring new path in life, whether it be entrepreneurship or master basket weaving, having a lot of stuff actually anchors you down and prevents you from making the leap, as now you have stuff to lose.
One of the scenarios I like to play out in my head is “what if I was washed up on a civilized island, with no home, no knowledge of the language, and no worldly possessions?” Well I know what I would do. I would get a job washing dishes or similiar task, scrap up some money, and start a grassroots business that made sense as soon as I had enough money for the materials for the product I would sell (be this lemonade or some sort of handmade tool or artwork) and a small wooden stand. I would then sell sell sell and build up from there.
The beauty of the above scenario, besides a best-seller bibliography, is that when you have nothing you have nothing to lose. You are thus free to persue what you desire and risk it all because in the worst case scenario you are back where you started - with nothing. The moment you add a car and a house and a big screen TV things get complicated and your most prized possessions can also be the barriers to achieving what you really want out of life.
I don’t feel right telling you what you should do. There are thousands of really successful entrepreneurs out there that would make better consultants on these matters, but I hope this gives you some food for thought in your decision.
April 15th, 2006 at 12:10 am
[…] I bet you have come up with some pretty darn good reasons for why those terrific ideas in your head have remained there. Inspired by Steve’s comment to my Top 5 Reasons to be an Entrepreneur article, this post is for everyone unsatisfied with the daily monotony of their job, wishing to run your own business, but unable to make the leap. […]
June 28th, 2006 at 6:48 pm
[…] Source […]
July 12th, 2006 at 3:12 am
[…] Entrepreneurship is the growth and emergence of a new business. That’s it in the most simple terms. This birth and growth of something new from someplace special inside someone is entrepreneurial and entrepreneurship. Matt Inglot gives his top 5 reasons to be an entrepreneur just as Rob gives his reasons why he quit entrepreneurship and got a real job. But starting a business is but the defining point of an entrepreneur and an entrepreneurial venture it doesn’t stop there as this venture has to be growth orientated and focus on innovation and creativity o that the business can sustain itself over its lifetime without going into failure. This means that the emergent business must re-define a product, service or procedure through innovation or creativity and drive to be at the forefront of its industry and sector and grow continually to be classed as entrepreneurial in nature It cannot be average or it will be seen as just another business, read this article from Seth Godin on average and apply it to entrepreneurship. Now lets take this to a new level. […]
July 29th, 2006 at 2:07 pm
Hey, I am someone who up’d and quit their job with only about 1K in bank — all nothing to go on but a dream — and also a rough draft of a business plan.
Almost 2 months later … realizing that my plan A also needed a plan B - Z, now I am forced to go back in the workforce. Also to add, I am single-parent of 1.
Atleast now I know what I did wrong, and can now reaccess everthing. However, I will now start with moonlighting — something I should have done in the first place.
However, something still deep down inside of me still tells me that its possible. I believe NOTHING is impossible as long as you have God and Jesus Christ on your side. However, the bills keep coming and now I am skating on VERY thin ice. The tangibles are bills, time ticking away and food and clothes that are needed for my son.
If you know of any stories of folks who actually were able to succeed in the same attempt as I did — that will be great. It will give me some encouragement.
Thanks and take care.
Christy
July 29th, 2006 at 2:41 pm
Nothing wrong with moonlighting (fantastic idea to start-up the business… done it several times). Sounds like what you need is to get a better hang of your business and how you will make money from it, build a client base, etc. You’ve already stated what you need to do (re-assess, learn from experience, try again) so you’re in good shape to eventually succeed.
As for who got a business up with nothing? Pretty much any start-up, be it a now gigantic corporation or a successful consultant. Part of the fun (and much of the stress) of starting a business is taking a little bit of cash and turning it into something so much more. Find the history of Apple, Harry Rosen, and Google, and Second Cup as four examples right off the top of my head of well-known companies whose founders didn’t have money but made it work (and you’ll note that each got their money a different way). In fact I bet it’s easier to find companies with very humble cash-strapped roots than entities started by those with “adequate capital” with plenty of time and no bills hanging over their head.
You’ve got the right attitude and if you are willing to learn and accept that failures will happen then why shouldn’t you succeed?
August 14th, 2006 at 1:19 am
Thank you for another amazing article. I am interested in entrepreneurship, and this article has given me “reinforcement” motivation to continue on my path.
August 29th, 2006 at 8:37 am
I think more and more people are realizing the benefits of being an entrpreneur. Evidence of this is clear from both the increasing number of start-ups as well as the entrance of entrepreneurs into their own reality TV show. This trend is sure to only spark more interest into this career path. I mean, just consider the series Dragon Den: the reality TV show that has entrepreneurs pitching their ideas to VCs on national television (a series that was popular in both the UK and australia, and now is being produced in Canada), even looking at the production blog kept at www.INSIDEtheDRAGONSden.com is inspiring and full of stories and excitement.
The blog itself is kept by a mentor capitalist (Sean Wise: www.seanwise.com) who’s active in working with entrepreneurs and VCs and’s now sparking the interest of the online entrepreneur community with questions from “How much with the Dragons invest?” to snapshots of inventions. Considering the amount of buzz going around about entrepreneurs these days, I bet we’ll see an even bigger surge of entrepreneurial start-ups over the next few years, months, or even weeks… or at least a few more lemonade stands on the corner!
September 11th, 2006 at 3:33 pm
I think entrepreneurship is all about getting out of your comfort zone (Job) and giving up that regular income that comes with it. My dad has a business and i have seen him live his life the way he wants too. I want that too, but being in a job is much easier though it’s not as satisfying as running a business.
My problem is that my dad’s business is in UAE and now i have to some how get it out of there and into the US while maintaining my status as a resident. Which is not possible unless i invest 1,000,000 (Which i don’t have) or maintain a job, no matter how boring it is.
What makes it more difficult is that his business is in Textiles (Retail & Whole Sale) which is a form of business that will not work here. Since people out here only wear Ready Made clothes and getting clothes stiched will be expensive (Labout cost).
If anyone in here has an idea let me know. I am actually looking for dsigners in the US to form a partnership with whom i could supply the raw materials to stich or design clothes. So if you know any one then let me know.
January 28th, 2007 at 8:27 pm
Really excellent content. Enjoyed both the “why” and “why not” of being an entrepreneur. Have been both.
This is a great blog.
Eric
August 11th, 2007 at 4:41 am
September 6th, 2007 at 2:00 am
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November 5th, 2007 at 5:01 am
i believed thatthat is one good answer you gave in your questions of WHY DO YOU THINK YOU CHOSE ENTREPRENEURSHIP, AND WHY???? I have more correct answers in yur questions that is
OWNSIZING which means eliminate employees and the one young age and least experience will be the first one to go out of the door. (so its bye bye Mr. Young Associate Employee)
WHY PEOPLE BECOME ENTREPRENEURSHIP?
1st reasons: DESIRE TO BE YOUR OWN BOSS,
2nd reasons:DESIRE TO SUCCEED FINANCIALLY
3rd reasons: DESIRE FOR JOB SECURITY
4th reasons: DESIRE TO IMPROVE QUALITY OF LIFE
DESIRE TO BE YOUR OWN BOSS: you can borrow $50 thousands and multiply the $50 grant to $20 million.
DESIRE TO SUCCEED FINANCIALLY: research shows that entrepreneurs are four times accumulated a millions of dollars than those who work somewhere else. two-thirds of self employed are millionaire.
DESIRE FOR JOB SECURITY ( you are correct with your answer): entrepreneurs creates small jobs, while economy slowsdown shows many workers too are out of jobs . The large corporations are applying a system called DOWNSIZING : Some Corporations who are now slowing down in Businesses like for the reasons of Management shortages and and uneven cash flows or fluctuations, Companies like this will apply a method of so called
DESIRE FOR AN IMPROVED QUALITY OF LIFE: To reduce working too long hours and desire to have more relaxed life. ability to fulfill broader social objectives through their ventures.
submitted by JOSEPHINE CASTRO YONG of Redmond, Washington
Entrepreneur/ founder of techno-trance disco.
Entrepreneur /founder of International Business marketing for MidEast-U.S.A.-SE.Asia-Europe (MUSE itech)
March 21st, 2008 at 12:23 am
I want to thank you for this post. I have recently resigned from my work to take matters into my own hands. I feel an entrepreneur must be an artist/business savvy person. When I say artist I mean creative, but you must be able to manage, do book-work, sales, marketing, and much more. I have developed so much more while doing my own business, rather than working a job that lets me stare at a screen all day in a nice 5×10 cube.
May 11th, 2008 at 3:49 am
this article helped me a lot when i first started my own business 2 months ago, now i have a completely different mindset.
My new company is http://www.intune-media.co.uk , its going well so far.
still working on my sim city house, the metropolis comes a little later!
October 17th, 2008 at 11:01 am
Thanks, but how can one get started, especially in this economy of ours? Nigeria