August 05, 2004

Advice against starting up

In an article appearing in StartupJournal, Warren Schulz - who has started and sold two small businesses - provides strong counter points to the "great benefits of being your own boss".

An extract from this must read article for all "aspiring entrepreneurs":

Let me offer this reality check. If you're employed in corporate America, you've probably got a steady paycheck. If you get sick, your employer's health insurance plan probably will cover most of your doctor's bills. If you want a vacation, you're apt to have paid time off. For the most part, you can do your eight and hit the gate. You've got it made; you just don't know it.

Running your own business is hard. But you think you're smart and can take an idea and make it happen. Odds are good that you'll lose half of your start-up cash by making mistakes. They may involve bad leases, employees, records, decisions, ideas or luck. The bottom line: You're bound to make mistakes, and they'll cost you.