Neo said:
TheThinker, I've read your posts with interest because I currently have a corporate job and have entrepreneurial hustles on the side.
There's a lot of blogs these days related to the current entrepreneur movement, and I've read WAY too many posts that advocate not having a back up plan. That by 'going all in' you will force yourself to succeed.
I think this is dangerous advice.
Agreed. As someone that really has NEVER worked for someone else for more than 4 months or used their degree for anything until a decade after college, I know the real risks of entrepreneurship. I've had products/services that people wanted, I've done 1M plus in revenues a year, I wasn't just trying to figure out how to make money; I was making good money and living a good life (outside of working my ass off) BUT...
It's undisputable that 90+% of entrepreneurs will fail, over and over. It's not even in your control some times. Yes, you can pivot over and over and over, but if a government or state or local municipality wants your industry dead, they will see to it. If a much larger company wants market share, you will struggle to keep your costs low enough to compete. If you aren't an expert in one area after many years of understanding the gaps in a segment, you won't have a competitive edge (hence why successful ventures are started by middle aged corporate guys that understand industries in and out). There are dozens and dozens of variables, many that are out of your control that can sink your ship.
The lesson I've learned are invalable, so yes it was all worth it and yes I will be back stronger than even within a few years. In fact, I'm working on a prototype for a product that I've calculated could do 12M just in my state alone. So NO, I will never stop being an entrepreneur. But you will only ever succeed in the long run if you really learn and cement some very hard lessons and respect that you can drop back to zero.
With that said, there is NOTHING wrong with trying to keep a decently marketable skillset polished, having good contacts that know you are a reliable person, or having a temporary position (be it 6 months, a year, or part-time) to make sure you can keep food on the table while you plan your next venture.
Reading through your posts it seems that you erred on the side of too much risk and didn't diversify your skill-set.
Dead on. I stayed almost exclusively in a niche segement of an industry being decimated in front of my face. After a few years of million dollar revenues, I spent 3 years trying to turn around a sinking ship and I burned good money trying to recreate the past. I was stagnating personally because I spent every day battling to keep enough water out of the boat to keep it from sinking.
Lesson learned. Whether it's relationships or business - if the writing is on the wall - cut it off immediately and put your capital and time to better use.
In your shoes I would do a deeper evaluation of the behaviors that led to your current situation. See what lessons you can learn.
IMO, there is nothing more important and valuable than building the awareness neccessary to view yourself objectively to learn from your mistakes.
Looking back, I had a redicuous EGO, which is something that often takes a long time for people to realize and understand as an impediment to success. I was insultingly confident, even to friends and family. I didn't value anyone or anything that wasn't related to business. I wasn't a reliable friend and barely had a relationhip with my family. I was definately ALL IN but only for myself.
I don't entirely agree with WWT's intial post, but I can see why he believes that it would be hard to do anything other than be a 100% entrepreneur. Back then I felt in a constant state of almost mild panic because I was CEO and the shit worked or hit the fan because of me. In reality, I was taking on every task and doing 95% of the work even though I had a business partner and a marketing director. I should have delegated more and taken on a more fair set of responsibilities.
I was also in a disasterous relationship, hadn't resolved my own insecurities, and didn't respect myself enough to limit the amount of stress/abuse others placed on me. I also had poor money management and risked my personal capital.
This is the CRUX of being a successful entrepreneur because CASH IS KING. In particular, I'm talking about in your personal life. I didn't misspend company funds. I had over a million in my clients trust accounts and not a dime went anywhere except to their creditors. That shit will land your ass in jail, so that's even more important.
But, when it comes to your personal finances, you better be aware and smart. Don't think that the gravy train can't end because it always will and you'll need resources to stay affloat and to figure out your next venture.
Also I completely disagree with worldwide travelers black and white thinking. There's no shame in getting a job to get back on your feet while AT THE SAME TIME using that income to build another business. Working for someone doesn't make you less of an entrepreneur or a failure. In fact it eliminates all stress since your regular job is like corporate sponsorship to your side hustles. ...
A lot of marketers like to hate on the corporate world:
You're a slave man!
Quit your job now!
I use to hate regularly on the corportate world, even though honestly I was also afraid that I wouldn't fit in. My social skills were undeveloped and I spent most of my life planning my escape from the domination of others. I wanted 100% control of my time and 100% autonomy even if I barely scraped by. I can say that it probably came from being controlled heavily by my parents.
To this day, nothing is more important to me that having control over my time and being able to work on my projects. To me the money is inconsequential but I've learned it's essential.
The key is not to stay in the warm blanket for too long and keep up the motivation.
Exactly, just like with relationships - it's hard to get out of that warm blanket even though it's worn, tattered and not really satisfying you. How many guys stay with the same semi-warm girl or semi-good job even if you know you can do better; but it's a risk and people don't like to be cold, broke or alone even temporarily. Luckily, not a problem for me personally these days. I learned that I value respect over love, and won't put up with shit- not from a stranger or from a boss. Even my current girlfriend knows that she comes second to my pursuits beccause self-actualization must precede all else.
Do an experiment. In the US ask a roomful of people if they want a stable job or to start their own business. EVERYBODY wants to start their own business.
Right, but nobody wants to IMPLEMENT. Our government and most of the world thinks that Innovation will save us but it won't. Innovation means didly shit without DOERS.
But how does the guy with a 9-5 and a dream take a chance at a venture without jumping ship of losing his shirt? Just like you, he starts lean or he finds someone that's been down the road. Hence why we can give back and help others by showing them the path of least resistance and lowest risk. But again, we aren't McKinsey so we shouldn't try...
Quick Story:
I remember back when I had just gotten my first townhome style apartment. I was like 22 and finally had no roommates, and had been grinding it out an an entrepreneur with my latest new venture for a few years. I would make a few sales here and there and some months I would do okay. One month, I didn't make any sales and had to invest in marketing and I didn't have the cash to pay my power bill. I went home, the lights were off and I had to light candles just to take a shower. It was a low point that I've never fogotten it. I sat down and accepted where I was in life and however you want to say it or call it, I relinquished a good bit of my ego. I made a promise that I would remember these times and never forget this side of the coin, if the world would give me a chance to make it big. Within 1 year, I had $450,000 in my business bank account. Now, this wasn't net profit but it was night and day from where I was a short time previously. It showed me that I could do it. I just had many more lessons to learn and one was that I either didn't risk it all or I had to have some type of marketable skills or a temporary "plan b".
Thanks for adding value to this thread.
I don't think marketable job skills and being an entrepreneur are "compatible" goals.
