Entrepreneurship is on a new high with the fever rising among many, looking at mind-boggling valuations for digital startups (think Instagram’s $1bn deal for a non-revenue generating mobile app business). There hasn’t been a better time to startup, so they say. In fact, in one recent research, almost half of all Americans expressed their desire to start their own business.
I know you too are thinking in the same direction, as it’s safe to assume that that is the reason this article is of interest to you.
Starting your own business is not a matter of desire. I desire to be among the pro-Golfers, but that desire alone is not enough to get me there. Neither does it make me a better Golfer.
So, how do you quit your job and start your own business when there’s a fire burning inside [click to tweet], or so you think?
Before you jump the gun, do you know for yourself, why you want to become an entrepreneur? Answering the ‘why’ is far more important at this stage so that you can save yourself from all the grief and misery later. I say this with experience of starting four ventures of my own and working for startups through my career.
Entrepreneurship is not pretty. It’s pretty darn tough. Quitting your job to start a venture is like abandoning a sailing ship in the middle of the ocean looking for adventure, seeking an island sailing on a dinghy. It looks fascinating and adventurous, but not everyone’s cup of tea to face storms, possible capsizing and navigating through shark-infested waters.
Identify the reasons for starting your own business
If the following are your reasons for quitting your job to start your own business, then save yourself some grief and look for a better job or stay put.
#1 Unhappy at your job or with the boss: is this the trigger to start thinking of going on your own? If so, then first, look for a job that makes you happy. Once you secure one, then think about starting on your own and see if you still want to give up your job to startup.
#2 Peer pressure: you’ve got friends who’ve started up and every other person you hear of friends of friends are starting businesses. That gets your juices flowing, but just because someone is doing it doesn’t qualify you to do it as well.
#3 Glitzy and glamour: you watch The Social Network and get so inspired by the fancies that come with starting ones own venture that you want to take the plunge. Let me break your dream-bubble here: entrepreneurship is nothing like that. Co-founder of Linkedin, Reid Hoffman, best describes the entrepreneurial journey: it’s like jumping off a cliff and assembling an airplane on the way down!
#4 You have an idea: My neighbor has an idea, my friend has an idea, his kids have an idea. An idea doesn’t maketh a business. And that doesn’t make all of them entrepreneurs. Did you know that only 1-3% of ideas become a company and a fraction of them successful at that? So, merely having an idea is not enough reason to start a business. Rather, think about the execution, how will you execute it, where will you raise funds for it, how long can you go without any earnings, how will you market, how will you sell, who will manage your finances and if you fail, will you give it up?
These are not words of discouragement, but a reality check. For all that is entrepreneurship, one has to really know what you’re getting into. It is, by no means a destination, but a long, crazy journey.
The entrepreneurial journey
So what does the journey entail? These are just some of the paths you have to cross when you embark on an entrepreneurial journey.
#1 Little or no income: before you can pay yourself, you have to take care of all the expenses related to the business including salaries of your employees, if you have any. Before you’re able to do that, your business first needs to generate money and enough to sustain itself and then the entrepreneur. Are you prepared to give up your salary and have a meager earning for the next few years?
#2 Failure: chances are that once you launch your product or service, you will fail. Because that is what happens to almost all entrepreneurs. No product is successful the day it is launched and it has to go through several iterations and failure before it gets traction. The only difference between the successful ones and others is that the successful entrepreneurs are passionate, persistent, flexible to change and adapt, open to pivoting and want success as bad as they want to breathe when dunked head down in water. It takes ten years to become an overnight success.
#3 No Funding: if you feel you can take your idea to a VC even before you have your own skin in the game, you have absolutely no clue then about entrepreneurship. VCs invest in companies with traction and proven potential. Do not start to daydream hearing about those few companies that got funded. There are hundreds of thousands others that didn’t get any funding. You only hear about the deals that go through in the media.
#4 Three Ps: passion, persistence and a problem; if you don’t have either or all, you’re doomed as an entrepreneur. Let me elaborate. You need a problem to start with, a problem that your business will solve, which is such a great problem that someone would pay you your price to help solve it. You need to be passionate about solving that problem. Because, if you’re not passionate about it, you’d lose interest the moment you’re faced with a challenge. You have to be so persistent, that you last the next 5-10 years running the company through failures and changes in the dream of making a difference.
Once you’ve identified that you’re starting up for the right reasons, that the problem you’re trying to solve gives you many sleepless nights, that you spend every waking moment thinking only about how you will solve the problem, that, my friend, is your moment to validate your idea and take that leap from a job into entrepreneurship.
In my next article, which is Part 2 of How To Quit Your Job And Start Your Own Business, I will give you insights and inputs on how you can actually start taking the steps to transition from your job into a business that you own.
photo credit: Tau Zero via photopin cc
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asha chaudhry
rahul,
welcome back with a huge bang!!!!!
loved every single bit – especially this – “#4 You have an idea: My neighbor has an idea, my friend has an idea, his kids have an idea. An idea doesn’t maketh a business. And that doesn’t make all of them entrepreneurs.”
:))))
“Did you know that only 1-3% of ideas become a company and a fraction of them successful at that?” alok recently said the same thing on ndtv profit – https://www.therodinhoods.com/forum/topics/there-is-no-instant-nirvana-in-being-a-startup-alok-on-ndtv-profi
looking fwd to part 2…!
Rahul Varshneya
Thank you Asha!
I did see Alok’s interview and loved every bit of what he had to say 🙂
Karan Pandhi
Rahul Sir,
Long time, and great to get these points from you.
Thank you so much Sir.
Sanchita Dutta
#4 you have an idea!!
was looking for someone to bell the cat with so many of us looking to turn “entrepreneur” because “an idea” happened to flash in our mind one fine day… the points brought out is indeed a reality check and each newbie need to ponder over each of those words..
#3 No Funding..
the SINGLE BIGGEST REASON for turning entrepreneur is those “flipkart” and “snapdeal” deals that one reads in papers. no solving the problem, changing the world, turning the earth green etc are really the reasons. we all know that. (its all about money) but we will no acknowledge and keep patting each other with “great idea” and “best of luck”. it doesnt help. plain n simple. stories are hearsay, money is real. if you dont see (or show to others) value in what you r doing, how can others see or believe it. so one needs to start with intent to profit, succeed, and then find someone who can take it up to a larger canvas.
I always wonder what most of the start-ups end up with after say 6 months or 1 year after starting. it costs money just to survive without a salary, much more if there are more living off ur venture. are we generating enough revenue, forget profits to realistically hope for a turnaround in foreseeable period which hopefully we can survive without any source of income and with help from family n friends? serious things to ponder before taking the leap of faith.
a lovely read. gr8 insights. and something to learn and ponder over for all of us. thanks
Rahul Varshneya
Thank you for continuing to read my articles! Appreciate it.
Rahul Varshneya
Hi Sanchita,
Thank you for your comments. By no means should you not have a revenue model when you’re starting out. Businesses like Twitter and Instagram are one in a million and isn’t something that most can replicate.
When one is starting up, one should have a clear revenue model. However, making money should not be the goal. If one solves a problem for a customer and does it well, there is no reason why the business will not make money.
In fact, I always assert that one should get their first set of customers, who will help you validate your idea, to pay. That itself is the best market research and validation for your product.
Cheers!
Darshan Bhambiru
Great read Rahul!!
I Recently came across an incident which I remembered in this context, a person with a Very Bright Idea Fighting Tooth and Nail on how he would not Get his Idea out to the World, Just because he was afraid some one would COPY it.
And was trying to get an IDEA Patented or Copyrighted.
Though a Futile attempt and very much on the lower end since nobody knows WHAT a Great Idea that would be too now!!!
I believe in the 3 C’s… Choice, Chance & Change.
I made a Choice to take a Chance and make a Change. Do IT !
Need to Ask the 5 W (Why, Who, What, Where, When) and 1 H (How) Questions on every answer received, for each in return every time to Get the Best reasoning!!
Why is a Car’s front glass so large and the rear-view mirror so small?
Because the future is more important than the past.
Look ahead with a bigger view and move…
The rest as they say is, it follows when you TRY!!!
Cheers!!! 🙂
Rahul Varshneya
Thank you for your comments Darshan. An idea is just that. An idea, not a business!
Manish Singh Bisht
Wow!!
Rahul Varshneya
🙂
Sridhar V
This is the million dollar question that most aspiring entrepreneurs have before taking the plunge. Nice article and very informative and provides a reality check. A wrong move or entry in to entrepreneurship can ruin one’s life or career. So taking measured steps, being realistic, conservative and having a back-up plan is required.
I’m eagerly awaiting Part 2, and looking to learn how to transition in to a business.
Rahul Varshneya
Thanks Sridhar. Look out for it next week! 🙂
Saif
This is so Fab !!!! I started to do this as an analysis for myself with a spread sheet with yes/no answers…Thank you so much for this one Rahul. eager for the part 2 🙂
Rahul Varshneya
Thank you Saif. Look out for part 2 early next week! 🙂
Mahesh Khambadkone
A great article. Well written and awesome points.
If you could touch upon finding partners / co-founders / joining companies that are doing what you want to do, rather than starting up yet another startup, I feel that would be very relevant.
Entrepreneurs need to have pride. But not the kind that dismisses others doing something similar. One needs to realize the most successful start-ups are those that have the right combination of passionate people.
Rahul Varshneya
Thanks Mahesh. And good point, though, the instances of such happening practically would be far and few. I do understand your point of view, but people want to go it their way and most often, co-founders/partners are made in the natural environment.
Not to say that something of this sort cannot happen. Would love to see it through! 🙂