Every young person has a desire to execute his idea, to make it really big ONCE.
Some do not get a mentor and some are unable to gather courage, The ones who get mentor, get courage as complimentary with the package.
When you decide to become entrepreneur, Remember, You are creating envious environment for yourself. Some will not the like the idea and they feel threatened ( they have more confidence in you than you yourself).
Other than the emotional and physiological barrier, there are real challenges for a budding ENTREPRENEUR :
FINDING A REAL MENTOR
There are many available to guide you and teach rocket science over drinks, But, One real MENTOR can make all the difference. When you start a new venture, More than a partner, You need a MENTOR.
Finding a genuine MENTOR, is Herculean’s task. No one is ready to part with the real secret of their own success. “Remember, No one other than your parents wish you to do better than them.”
Philosophical MENTORs are generally very dangerous. You need some one who has seen all seasons and is practical in approach.
MENTOR will talk less and listen to you more, He will guide you and help you. “Nothing comes for free” is true but, No cost can buy a “REAL MENTOR”.
This is First step to your Journey.
2. ACCESS TO CAPITAL
When I was in SEVEN Digit Salary job, I had 10 banks after me for offering a loan at cheaper price or a credit card with NO LIMIT. The moment I decided to become an entrepreneur, The credit manager asked me, Why do I need enhanced credit card limit? When I have no regular income. IMAGINE, The credit manager never asked me when I was working for someone else.
Loan eligibility of an aspirant entrepreneur is lesser than a regular job employee. You will think, I have made a mistake by becoming an entrepreneur in the beginning.
You need 3 year balance sheet with profit on and P&L for applying for loan, When this is your first year of business.
Provide for Capital and probable loans needed.
The best way is to raise all the loans before quitting your job and then QUIT. Credit Manager never comes afterwards. Collection manager may, If you delay the instalment.
Pay all the instalment of the Credit card and loans in time to create a good record.
3. COST OF BORROWING
Since Loan is not easy for the aspirant entrepreneurs, The lender always charge higher rate or negotiates for higher equity in your business.
The lender without participating in efforts wants to get higher percentage in revenue. Thats the capitalist mindset.
The budding entrepreneur has lesser knowledge of tricks of lenders and gets in trap easily. A lot of start ups end up roping in a capitalist taking away majority of the earning.
A good negotiation skill is needed for a budding Enterpreneur.
4. SOCIETAL CHALLENGES
When you are working for others, or employed with an organisation, The landlord will offer you lease extension at same rent or even lesser in some case, The bank will offer you a higher program with all benefits, The credit card company will offer you a Priority pass along with a higher limit on the card, The loan companies will call you and offer loan without collateral.
The day you decide to start on your own, The land lord will ask you to vacate the house, prospective land lord will pull his offer back, the bank will reduce your credit limit, housing loan company will not offer you a loan even, and loan companies will stop calling you for without collateral loans.
Even marrying a partner you wish to becomes a challenge, In some cases staying in old marriage/relationship too.
“Be prepared for this journey, The end result is beautiful. All of above will be envious and regret their stance later”
5. DEFINED WORKING HOURS
When you are working for others, you can always define your working hours and switch off your phone after 7 pm if you wish to.
When working for self, you have to be mentally awake 24 hours, all 7 days.
The hours can not be defined, your work will take front seat over all other priorities. You will have to give up your family time and friends time to your business in the beginning.
Wait, Don’t be dishearten, Friends and family will be proud of you and the result will be more fulfilling than the time invested.
A lot many times new entrepreneur will face rejections. This is part of the journey. In a job as well, many times we face rejections from clients or bosses, But we keep move on.
In your own business, it pains more.
Take rejections as learning and move up. Every rejection is new experience with knowledge of “What won’t work”
Were you not rejected in school ever for the project you made? Or in love life, when you proposed for the first time? Or a job interview, where despite being the most deserving you were not selected?
Did you give up then - No? And, that’s what got you here.
7. HIRING TALENT
Most of the youngsters are looking for a very secure and growing companies to work with. Also, some companies pay amazing salaries to the deserving candidates. Why would they work for a new enterprise with no track record or security?
The entrepreneur many times end up paying higher salary than earnings or sharing equity of the company. Even then the employee negotiates with other organisation and leaves.
Hiring and retaining of deserving candidates needs a lot of planning. The employee should share some passion for the project you are getting in, also, the only driving force for the candidate should not be money. Employee should be taken through the journey you are planning for your new company.
When the candidate is confident of the growth of the company and gets excited to be part of the journey.
The big players in any field leave lesser room for competition. New entities struggle to compete with the giants.
The capitalists replicate the ideas of start ups very fast. Patenting is important if you have unicorn in mind.
IP (Intellect property) laws are misused to exploit the start ups. With lesser knowledge and access to the legal systems, Start ups struggle.
9. REGULATORY CHALLENGES
Any new idea by the entrepreneur will surely face a challenge from regulator. The systems are not tuned to accept newer ideas easily.
The policy makers drafted the policy few decade back and to get amendment in the same takes forever. In many cases the ideas dies before even getting implemented.
The flexibility in the system is not enough to accept unique ideas from fresh minds.
With the liberalisation expanding and minds getting opened, New generation taking over the policy-making in their hands, There is a silver lining.
We hope this change is rapid and the acceptability comes faster than expected.
10. FINANCE MANAGEMENT
Since the young generation is prone to indulgence, Any access to capital is being taken as luxury. Where as any capital infusion should be taken as a debt and has to be returned to its original owner.
Managing day-to-day finance and managing long term finances require a lot of in-depth knowledge and experience. A well managed treasury can solve a lot more and save more than business itself.
Banks are not the best option to manage your finances as they have vested interest in your finances and will always offer you products which are profitable to them and not best suited for you.
A strong financial advisor will help you in planning finances and managing taxation. Thats the back bone to any business.
We wish all the budding entrepreneurs a great success. You are not just living your dreams, you are fulfilling many dreams, You are building nation.
One of you will become TATA or AMBANI or ADANI and give employment to millions. World is waiting for you and announcement of your arrival. RED CARPET IS WAITING TO WELCOME YOU.
visit us at www.Jasmeetsanand.com