You have had it. You have been toiling in the corporate world for so long that you feel you have mastered the ‘business’ and thus will take the plunge. You want to be an entrepreneur, or at least be part or full owner of the business so that you will be able to finally benefit partly or wholly from your labors.
You put up your own money, or borrow from friends and family. Or better still, got some investors who believed in you…. But before that, check out first your mindset — evidently you want an investment in the future, and therefore is willing to sacrifice something in the present for it …. or are you?
How you perceive yourself when you start the business, and the lifestyle that you seek at that time determines whether you are really serious in ‘making’ it or not. for those that forego their present income, and even some of their ‘perks’ to start something, you are on the right mindset.
However, let us say that you are one of those ‘lucky’ ones. You got somebody to invest, and not only are you getting x percent higher salary, but they promised you also a bigger office, a better car plan and perks, a longer vacation, a ‘golden’ parachute in case things don’t work out, plus a 5% ownership of the business or stock options.
Man, you might feel like you have a deal made in heaven, and that you have the best of both worlds. Either the investor is very stupid or very smart in granting you these benefits. The only thing I can say is good luck, but no, these kind of deals are not the stuff great entrepreneurial successes are made from.
I believe that for entrepreneurial ventures to work, there has to be fire in the belly, and a desire to make it work. The only way to have it done is to take out the safety net below, and start to sarifice something ‘now’ in return for better returns when the business makes out.
Thus, instead of better salary, and perks, but only 5% of the business, you could have negotiated to have a lower salary, plus no perks, but 20% of the business… I am sure a smart investor would be willing to grant you that. It is in his/her interest to make sure that you have the right mindset to grow the business rather than taking what is due you now….
At any rate, the way for a start up to work is if the entrepreneur focuses initially not on getting the best pay, perks, or benefits from the business at the start, but in growing and building it for a better return in the future. The more he stand to lose by the venture not being successful, and the more he stands to gain when it works, means the harder and more motivated he will be to see it through.
In short, it has to be one or the other. As they say,’ you cannot have your cake and eat it too.’
What do you think?