Is Entrepreneurship Really That Risky?

by John R. SedivycloseAuthor: John R. Sedivy Name: John R. Sedivy
Email: john@capecodbranding.com
Site: http://www.capecodbranding.com
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Not compared to the recent state of employment. Risk is relative, and all things considered this may be the right time for many on the edge of taking the entrepreneurial leap to take action and start a new business. Entrepreneurship is tough, but from what I am reading about the government and corporate sectors – they are not a walk in the park either. As an entrepreneur you are building equity in your business as well as yourself – not so much as an employee. Let’s discuss further.

Battling Temptation
My first year as an entrepreneur has been tough – really tough. Probably the most difficult experience in my life – and I have had many of those in the past. Let’s consider the difficult stuff first – uncertainty, sickness, stress, lack of structure, adjusting to a new lifestyle – these are just a few that I have come up with off the top of my head. If I would have known just how difficult I may not have taken the leap – but in hindsight it was the best decision I had ever made.

When things were really tough, I felt the temptation to plan a return to the corporate sector. But just as I get close to acting on such foolishness, I would come across an article like “On A Furlough, But Never Leaving The Cubicle” as published by the New York Times a couple  days ago. This would quickly send me back to reality. Of course, the further down the path you are, the less the temptation occurs.

Not So Fast
Being a former cubicle dweller the title sounds pretty depressing to me. I recommend reading the article, but I will give you a summary of the main points. First, government and industry are asking their employees to take a one day break (unpaid of course) in order to save the organization by cutting costs. Many employees, although they could not afford to do so, looked at the bright side – besides who wouldn’t want three day weekends? But what has happened is that many are working the day off as unpaid – in the “hope” that their manager will keep them around when the next ax falls.

Entrepreneurship & Unpaid Time
As entrepreneurs Amy and I have put in many, many unpaid hours building our businesses. But what generally occurs is that a payoff will hit just when you least expect it. Initially the payoff is enough – in terms of time and size – to keep your head and the business above water. But over time these payoffs occur more frequently and the risk of entrepreneurship becomes less risky. From my perspective, no time in an entrepreneurial venture is truly “unpaid.”

Now with a year into entrepreneurship I find it less risky than “stable” employment. Why? Because as an entrepreneur I have many irons in the fire which strike at various times. Between Amy and I we spread the risk even further by having more combined irons. If business is slow we work harder, we do not “reduce our workforce” by firing one other. As an employee my livelihood was with one  company, or even one individual. I can relate to the employees in the Times article – concerned with the employers perception and hoping that your boss would like you enough to keep you around. As an entrepreneur if you add value the marketplace will keep you around.

For those really considering entrepreneurship and stating a new business I highly recommend finding a partner. Not necessarily a structured partnership, but someone with similar objectives – the main benefits being that you can keep one another on track and motivate one another when needed – this also helps build momentum. For more on the benefits of partnership ready Amy’s article – “The Key To Successful Business? Partnership.”

Relatively speaking entrepreneurship may not be that risky!

-John R. Sedivy of Cape Cod Branding

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