Thursday, 2 August 2012

5 TIPS TO HELP AVOID DISCOURAGEMENT IN ENTREPRENEURSHIP

Most entrepreneurs see funding as the greatest problem to their dream of becoming a fulfilled entrepreneur. I use to belong to this school of thought and infact, I formerly had this staunch belief that if only I could get money, then my entrepreneurial dreams will be fulfilled to maximum. In this article, I am going to share with you, five (5) basic factors that influence entrepreneurial success a little bit more than funding. These factors embedded in the five (5) tips I am going to give you, are somewhat more psychological in nature, but you should know that the basis of success for any enterprise is the psychological condition of the entrepreneur.

1.         TRY TO AVOID BORROWING FROM FAMILY
          This might sound to you somewhat strange, especially since one of the sources of business financing is from family and relatives. However, looking at the psychological trauma of attempting to borrow from family, it might outweigh the merits inherent in it.
          The first issue is, your entrepreneurial creams are most probably understandable to you alone, and other people might not share your view. Thus, a relative or family you are attempting to borrow from who does not share your view will definitely attempt to discourage from taking that leap of faith that your ideas require. You could avoid listening to outsiders who do not share your view, it is sometimes very difficult to avoid the psychological problems attached to your family member’s disapproval of your idea.
          Eventually, apart from not giving you the capital you require, a relative might have dampened your enthusiasm by his inability to see the bright side that you are seeing, maybe because he knew you from when you were little and finds it hard to believe you are capable of executing the plans you have. So, as a rule of thumb, try as much as possible to avoid borrowing from relatives and family except the person really BELIEVES in you and will approve of anything without saying pessimistic things.

2.         IGNORE THE FACTS AND DO YOUR BEST
            There are numerous entrepreneurial facts in the present day world. These facts ranges from the inability of nine (9) out of ten (10) businesses to survive after five (5) years which is a global fact, to the increasing difficulty in accessing credit facility for business start-up etc.
          If you intend to face the fact that 9 out of 10 businesses in the world fold up after 5 years, you would find no reason to continue on your quest to become a successful entrepreneur forgetting the truth that yours could be the 1 business that will survive out of the 10 in your area if only you put in your best. The fact that access to credit facility is fast becoming impossible for upcoming entrepreneurs can also make you forget your ideas, at least what is an idea with no capital.
          However factual the above information might sound, it also presents the fact that only 10% of businesses survive after 5 years. I tell you very sincerely that by giving your best to your idea, you could make that 10%. If the credit facility is not available as huge as you would want it, you could start small with that little that you have and grow with it learning on the job.

3.         YOU STAND A BETTER CHANCE WITH YOUR OWN MONEY
          The tips 1 and 2 above stress the fact that a lot of discouragement can spring from trying to borrow from your family and relatives, as well as believing the global facts. The basic tip that helps you avoid the pitfall as enumerated in 1 and 2 above is to utilize your own money to start.
          The first advantage of using your own money is that you will be fired up to work harder since you do not want your hard-earned capital to go to waste. The second advantage of using your own money is the fact that you are not placed under any unusual tension of re-payment that might frustrate your entrepreneurial ideologies. The last advantage of it is, since you are just starting up, it is highly likely that you can not afford a lot of money as your take-off capital, thus, you are forced to utilize the little capital available, making you start small and starting small then growing and learning on the job, is the ultimate lesson for an entrepreneur.

4.         AVOID JEALOUSY AND ENVY
          In your race to become successful as an entrepreneur, it is quite common to find other people in the same line of entrepreneurship doing better than you are. If you decide to sell clothes, you soon discover someone very close by doing extremely better than you in the sales of clothes. In this situation, the immediate human tendency is to start feeling jealous and envious. This will not do you any good, it will only discourage you from continuing.
          When you discover an entrepreneur doing better than you, there are only a few profitable options available to you. You either learn from the person, or concentrate on making your business successful without measuring the success of others. In entrepreneurship, jealousy and envy will only lead your business into the 90% failure group.

5.         DO NOT BITE MORE THAN YOU CAN CHEW
          It is true that you are a capable entrepreneur who knows his onions. But, I believe, that each human has a certain limit to his capability per time. This limit is often set by the enormity of our experiences. The capability of a 5 year old child, is not anywhere comparable to that of a 30 year old man so long he’s not an imbecile. So also, the capability of an entrepreneur who has been in the game for 30 years is higher than that of one who started yesterday. This limit is determined by their experiences.
          It would therefore amount to sheer madness for a fresh entrepreneur to attempt to start at the point where the 30 year old entrepreneur is, the result will be frustration, discouragement and will be catastrophic in nature. So, as an entrepreneur, you must seek to understand the limit of your capability at different points in time so that you may understand ideas that are currently beyond you and those you are capable of handling. I tell you, the brilliance of an entrepreneur is measured his ability to differentiate the ‘sensible’ from the ‘gamble’. Whereas a sensible venture will bring profit, a gamble will bring discouragement, bite only what you can chew.

For some more counsel, read my article on THE EXPECTATIONS OF A GRADUATING STUDENT AND WHAT THE NIGERIAN ECONOMY HAS IN STOCK FOR HER DISCIPLINE.

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