Drug testing

The Risks of Entrepreneurship

The "spark" for many entrepreneurs is seeing an opportunity that doesn't yet exist. Ted Turner, for example, launched CNN because he perceived that people wanted more television news than they were being offered. It took a lot of patience on Turner's part to realize the vision, but he had read the market in a way that few "experts" did at the time.

In realizing the promise of CNN, Turner demonstrated another facet of the entrepreneurial spirit, persistence. There are a lot of bright ideas that never reach fruition; taking a "raw" idea and converting it into a successful business model is very hard work.

And that work never stops. No matter how innovative your idea, the competition is always just behind you. With anything less than constant creative effort on your part, they may not stay behind you.

Are you still with me? Here is where I reveal why everyone isn't an entrepreneur:

No opportunity is a sure thing, even though the path to riches has been described as, simply "...you make some stuff, sell it for more than it cost you... that's all there is except for a few million details." The devil is in those details, and if one is not prepared to accept the possibility of failure, one should not attempt a business start-up.

It is not indicative of a negative perspective to say that an analysis of the possible reasons for failure enhances our chances of success. Can you separate failure of an idea from personal failure? As scary as it is to consider, many of the great entrepreneurial success stories started with a failure or two.

Some types of failure can indicate that we may not be entrepreneurial material. Foremost is reaching one's level of incompetence; if I am a great programmer, will I be a great software company president? Attitudinal problems can also be fatal, such as excessive focus on financial rewards, without the willingness to put in the work and attention required. Addressing these possibilities requires an objectivity about ourselves that not everyone can manage.

Other types of failure can be recovered from if you "learned your lesson." A common explanation for these is that "it seemed like a good idea at the time." Or, we may have sought too big a "kill;" we could have looked past the flaws in a business concept because it was a business we wanted to be in. The venture could have been the victim of a muddled business concept, a weak business plan, or (more often) the absence of a plan.

When small businesses fail, the reason is generally one, or a combination, of the following:

* inadequate financing often due to overly optimistic sales projections;

* management shortcomings,

-- such as inadequate financial controls, lax customer credit, inexperience, and neglect, and;

* misreading the market,

-- indicated by failure to reach the "critical mass" required in sales volume and profitability,

-- usually due to competitive disadvantages or market weakness.

In a recent Wall Street Journal article titled "Why My Business Failed," Ken Elias cautions that "even if the concept is right, it won't fly if the strategy is wrong." Still, on being asked whether he would start another business today, he answers: "Absolutely. The experience is fabulous, exciting and the possibility of success is always there."

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

limousine chicago service
In The News:

The Myth of Undercapitalization - Six Ways Entrepreneurs Achieve Success in Spite of Start-Up Money

This year more than 17 million people will become entrepreneurs,... Read More

Venture Capital Negotiating Issues

When companies enter into negotiations with venture capital firms, there... Read More

Entrepreneurship: Insight and Closer Look At The Entrepreneur

Life as an entrepreneur is the American Dream. To be... Read More

How You Can Earn $1000 A Week Part Time

About 6 years ago I started to notice that certain... Read More

How To Grow Your Micro-Business

If you want to grow your micro-business (defined as a... Read More

About Ending Competition

1. Why should I not compete with others?The very concept... Read More

Confidence = Preparation + Courage

It always amazes me when I see someone on television... Read More

The 7 Traits of an Exceptional & Successful Entrepreneur

How often have you either referred to or considered the... Read More

Beware the Opposition!

Any time you make changes in your life you are... Read More

Corporate Espionage in Franchising

Franchising Trade Journals do not do well, because today with... Read More

The New Paradigm for Entrepreneurial Success

Entrepreneurship is a great magnet to deliver new ideas, unique... Read More

Seven Key Qualities of Successful Entrepreneurs

A recent poll conducted by Forbes magazine shows that majority... Read More

Why Most CEOs & Entrepreneurs Fail?

Times are tough. The economy is in a constant state... Read More

Six Steps to Guarantee Your Business Success

Many of us slave away for years for one uninspiring... Read More

Four Steps to Entrepreneurship

As more and more people start or consider starting their... Read More

The Boss is DEAD!

Some of us are born into families with "it", some... Read More

Entrepreneurial Hate, its out there

Today, I got an email from a lady who hates... Read More

Do You Have What It Takes To Be An Entrepreneur?

Q: I am interested in starting my own business. I... Read More

Your Company Needs A Mission Statement; Make It Count

Does anyone remember that book "Built to Last" done y... Read More

Independent Auto Detail Shop VS Biz Op or Franchise

Owning a detail shop can be an exciting and rewarding... Read More

Work On, Not In Your Business

Are you busy? Everyone's busy! Ask anyone they'll tell you... Read More

Business Planning Overview

The successful entrepreneur is generally more inclined, once a business... Read More

How Entrepreneurs Succeed - The 5 Qualities Needed For Business Success

What is it that sets a successful businessperson apart from... Read More

The Business Leader as Ultramarathoner

Have you ever heard of an ultramarathon? A standard marathon... Read More

Pre-Money vs. Post-Money Valuation

When a company decides that it must raise capital, a... Read More

led parking lot light fixtures pedestrian street light Pete's produce ..