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Evaluate problems of entrepreneurship carefully before starting own business

Running a business requires you to handle multiple functions. You do everything from marketing to sales, from R&D to managing finance and even HR.

ET CONTRIBUTORS|
Aug 05, 2019, 06.30 AM IST
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Starting your business requires a lot more hard work than a job.
By Dheeraj Gupta

To a lot of people, starting their own business seems like the right escape from the dissatisfaction or lack of appreciation at the workplace. Instead of slaving for a monthly salary, they dream of being their own boss. But before you venture out of the comfort of a steady income, understand the risks it entails. Doing business involves risks and any form of entrepreneurship requires you to work harder. Read that line again! You can’t stroll into office late in the morning, take a snooze in the afternoon and rush off early to catch a movie. Being self-employed requires a minimum 10-12 hour workday.

Your entrepreneurial dreams also require deep pockets. Be prepared to not only invest in setting up the business but also have enough working capital set aside for the first six months of operations. Some entrepreneurs have the luxury of a backup plan, but for most others, securing a regular cash flow is difficult and stressful. This is especially true for businesses where costs exceed the revenue.

Besides, running a business requires you to handle multiple functions. You do everything from marketing to sales, from R&D to managing finance and even the HR function. Though the rewards of entrepreneurship outweigh these problems, you will have to be prepared to live a largely fluid and uncertain lifestyle when you set up your business.

The franchising model of entrepreneurship is relatively less stressful. A franchise of a time-tested business model significantly reduces the risk of a start up and increases the chance of success. Though there is a rigidity in the product lines, you are able to avoid a lot of the teething troubles that fledgling businesses face. What’s more, franchising comes bundled with business guidance from a successful founder, group advertising, brand awareness, product launch resources, logistics, appropriate training and the benefit of recognised trademarks.

However, this doesn’t mean that franchising is a cakewalk. Just like any other business, it entails hard work, long hours, and ownership of the success of your unit. It also requires a great deal of maturity. While there is temptation to put your own spin on certain things, a franchisee needs to strictly adhere to the guidelines and recommendations from the parent.

(The author is Managing Director, Jumboking)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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