The dream of most people is to be self–employed. Some dream to not only make it, but make it big! Yet such dreams sometimes end up as a mirage. The main culprit for failed ambitions – and the dreams that underlie them – is fear. Fear of so-called ‘the unknown.’ Some tag it as ‘certainty to uncertainty.’ Others dramatize it – adapting from a popular biblical saying – that ‘the fear of failure is the beginning of wisdom.’ Please read failure as unemployment.
The implication is that there is a real risk in quitting job in pursuit of ambitions. Now the big question is what would you do under the circumstances? Succumb to, or confront, fear – the risk of quitting your job, as some would say, in quest of ambition that may prove elusive after all? It’s these and related questions with which Open Insights and Voice™ (www.leonardonyiriuba.com; https://leonardonyiriuba.com/2016/08/15/start-and-run-your-own-business/) is concerned in its Entrepreneurial segment.
Individuals may establish small–scale businesses to satisfy the urge for self–employment. Often, as entrepreneurs, they provide the risk–capital. They do so with own or borrowed funds. At start–up, and while the businesses remain going concerns, they assume business control, and may employ some category of labour. The owner–managers enjoy pride of ownership. They also bear the risk of business failure.
On occasion effort of some individuals to set up and run small businesses fails. Usually lack of lack, or inability to raise sufficient business finance, was at the root of observed failures in starting businesses. Thus, such persons may be compelled to suppress their self–employment desire. In silence, but often dissatisfied, some of them become or remain employees rather than self–employed or employer in the labour market. I distinguish three groups of persons with respect to self–employment motivation. There are, in general:
• Individuals who, having the urge for economic and financial independence, are actually self–employed
• Individuals who, for want of finance, have been unable to actualise their desire for self–employment and, thus, become or remain employees of others in the labour market.
• Individuals on whom unemployment forces self–employment, and who must be self–employed to eke out a living.
I’m really concerned with the fate of the people in the second category. The three groups, however, face a common problem. Each of them needs finance, which may not be available as and when required. They may also be exposed to a common problem in trying to raise capital in the financial market. Unfortunately, government prods at the unemployed to set up small businesses of sorts in spite of these challenges. However, government’s stance is based on its desire to encourage entrepreneurs or, failing this, boost job openings. The threat of unemployment is not the only factor that can trigger self–employment effort. Some entrepreneurs are motivated by profit, the desire for recognition, or to render services to others. One research that studied 247 restaurants, 148 furniture–making firms, and 82 bakeries in Nigeria corroborated this view. It was found that the most important reason for going into business was the same for all lines of business – and the reason was to make money. The least important was to serve others (Evborokhai, 1989).
I proffer some handy tips for going into business as follows:
• Don’t be in a hurry to quit your employment. Neither should you jump on self–employment bandwagon. You must be mentally prepared to be self–employed in the first place.
• Learn as much as you can about and from the experiences of those who already are in the business into which you contemplate going.
• Apprise yourself of as much information and knowledge as possible about the business. I highlighted the significance of this point in the opening chapter of my new book, “Bank risk management in developing economies.” I had stated – and it is true – that “every successful business has its game plan all worked out – the things it does differently, or in unique ways, through which it mitigates risk, adds value, overcomes threats, optimizes opportunities, and beats competition.” This should be your guide as you search for opportunities in business and self–employment.
• Conduct a thorough feasibility study and document report of the business into which you intend going. The study will help you determine the commercial viability of the intended business, among other objectives.
• Write your business plan based on findings and outcomes of the feasibility study. As the blueprint for your proposed venture, the business plan should be realistic and carefully written based on factual information.
• Never hire or arrange for someone else to run the business on your behalf – probably because you don’t yet want to resign your employment. Wait until you’re well prepared and ready to quit.
• Resign your job only when you’ve saved enough money for the venture capital and gained sufficient experience of the business.
• Then let quit be quit and commit yourself to making a success of it – yes, stick to your dream and be resilient.
• Don’t be afraid of failure. If you fail, learn from it and move on. Remember that most successful entrepreneurs failed several times before making headway.
• In order to move on when you fail, you should go back to the drawing board, figure out what went wrong, and reinvent your business plan. Of course, you must always open your mind to new business ideas and options.
Reference
Evborokhai, J. 1989. ‘Survival strategy of small business enterprises in an ailing economy.’ Unpublished Master of Business Administration research project. School of Postgraduate Studies, ESUT, Nigeria