The Real Professional Risks of Entrepreneurship
Most people are perfectly comfortable working for someone else. They have no desire to start their own business, mostly because they perceive entrepreneurship as a high-risk option. Most of these concerns boil down to four types of risk: financial, career, lifestyle, and ego. They imagine that the potential for success is very small and that the probability of ruin is high. They assume that the type of person who is willing to put all of that at risk must be fearless and crazy and have completely different priorities than everyone else.
In fact, the most successful entrepreneurs are relatively risk averse. The stakes are high when you put everything you have into the next great business idea, and true entrepreneurs work hard to mitigate every potential threat before it becomes a problem. The more front-end work you do, the lower the risk involved in the business itself. Of course, there is an inherent risk in going out on your own, but there are legitimate ways to manage and mitigate those threats. This article looks at the realities of career risk and what you can do to manage that risk as you dive into the world of entrepreneurship.
The concern about career risk is that leaving your industry during the months or years it takes to work at a startup can derail your climbing path. Of course, if your startup is a resounding success, there is nothing to worry about. The problem only arises if your startup goes south and you have to get back on the job market. The best way to mitigate career risk is to build a solid foundation while you’re still working and maintain those connections when you step aside.
Whatever line of work you are currently in, it probably provides endless opportunities to make a name for yourself. Build your reputation as an expert in your field and foster relationships within the industry. Keep records of your top resume builders – projects you worked on, accomplishments you earned, accolades you received.
Once you give your notice of resignation, give 100% until your last day of work. Don’t give your last employer, colleagues or clients any reason to doubt your dedication to them or to the industry. Make it clear that your decision to go out on your own is in no way a reflection of your current job or company, even if that’s not particularly true. The goal here is to leave the job with a positive reputation and a list of references who will be happy to recommend you in the future.
Once you’re alone, make it a habit to keep in touch with your best allies who are still in the industry. Connect with them on LinkedIn and keep them informed about what you are doing. If your startup is in the same basic industry, these connections will also be important for marketing purposes. Otherwise, maintaining these relationships will give you the connections you need if you have to return to work. Stay informed about changes in your industry too. Maintain your trade association memberships and visit their websites from time to time.
Reducing occupational risk is not particularly difficult; it simply requires you to be a desirable employee while working and to use basic networking skills once you’re alone. In reality, the primary goal of entrepreneurship for most people is to get out of an employer’s control … you may find that staying in touch with colleagues who are still on the daily treadmill will be the motivation you need to start your business. succeed.