W e’ve all heard the phrase, when referring to entrepreneurship, “If it was easy, everyone would do it.” While I believe that to be true, I don’t think it’s hard work that holds people back from starting great businesses; it’s simply getting started. In this Living the Startup column, I chose to focus on just that by sharing some practical ways you can turn your idea into a business, while drawing on my own experience as a startup founder. OVERCOMING THE PERCEIVED RISKS One of the biggest hurdles I’ve seen that holds people back from starting a company is the perceived risk. The financial risk, the risk of allocating a great amount of time towards something that could fail, and even the risk of embarrassment if things don’t pan out as envisioned. Before we go further, let’s break down these barriers and
how you can overcome them as an aspiring entrepreneur. FINANCIAL RISK No doubt starting a company to replace your full-time income inherently comes with financial risk. But what can be done to reduce the pain if things don’t go as planned? • Find a co-founder. Bringing in someone who is just as passionate about the problem you’re solving and is willing to take on 50% of the financial risk is a great way to cut the burden in half. Beyond that, you’ll have someone to share the wins and losses with and someone to push you when things get tough. • Keep your day job. You don’t need to go all in right away. Keeping your job to fund living expenses while allocating some of that income toward your company reduces risk. Yes, this means sacrificing things like dinners out, trips, or new outfits but if you’re
passionate about your company, sacrifices are part of the journey. • Use other people’s money. This comes in many forms, but the principle is simple: avoid spending your own money (assuming you have some startup capital to begin with). Crowdfunding through platforms like Kickstarter or Indiegogo allows you to share your idea and collect contributions in exchange for deliverables. SAFE notes or convertible notes are formal agreements that can be used for short-term debt or equity investments. Entrepreneur-friendly lenders such as Futurpreneur can also provide startup capital without gouging you on interest, unlike traditional banks. TIME RISK Starting a company is not only a financial investment but also a massive time commitment. You can’t just snap your fingers and expect to build something
Where there’s a will, there’s a way.
86 SPOTLIGHT ON BUSINESS MAGAZINE • VOL 25 ISSUE 4
BUSINESS • SPOTLIGHT ON BUSINESS MAGAZINE 87
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