Why do the vast majority of ordinary people’s entrepreneurship end in failure???
There are various reasons, and the situations are mostly similar.
A friend of mine, to be precise, failed to start a business.
He posted a message on WeChat Moments about handling company office supplies (desks, chairs, benches, computers), and couldn’t help but feel a sigh in his heart.
Why do the vast majority of ordinary people’s entrepreneurship end in failure?
Firstly, ordinary people may fall into a misconception; Entrepreneurship is all about making more money, but it overlooks the fact that the biggest risk of entrepreneurship is losing money.
Many ordinary people feel that it’s time to start their own business, so they first pay for renting space, buying office supplies, and recruiting personnel, which are all the costs and unnecessary expenses of starting a business.
The first consideration for ordinary people in the early stage of entrepreneurship is to minimize or avoid losses, save expenses as much as possible, and ensure income in case of drought or flood. Entrepreneurship for ordinary people is a life of nine or ten deaths. Entrepreneurship is not about taking risks, being passionate, or having money, but rather the best solution after weighing the pros and cons.
You must understand that on the road to entrepreneurship, there are not thousands of Grandpa Mao waiting for you to pick up, but you are trying your best to pick up while throwing away the money you have saved.
For example, since I left the education and training company in May, I have had the idea of starting a business. I have some money on hand, but not much.
I have consulted many senior entrepreneurs and friends for payment, but I have temporarily given up on starting a business.
Overall analysis shows that although I have been working in the workplace for many years (ten years), my abilities are still limited. Personally, I do not have the hardcore skills (management, coordination, data analysis, recruitment, etc.) that I lack. Even if you have worked on projects and led teams before, things are different now. As time goes by, we must respect the objective laws of the market.
The overall environment of the past two years is evident to everyone. Nowadays, neither the internal nor external environment is the best choice for entrepreneurship.
So I decided to first calm down and hone my hardcore skills in “writing” and light entrepreneurship, mainly by submitting articles, creating accounts for editors to review articles, and so on.
What I paid was only the cost of time and energy, with no other expenses.
I am not against entrepreneurship, but rather analyzing specific issues on a case by case basis. Everyone’s situation is different, and the tolerance rate they can bear is also different. Starting a business for an ordinary person is like dying for a lifetime.
I have been reading books for years, paying for knowledge, and seeking advice from friends on a series of questions related to entrepreneurship. Ordinary people must remember that the fear of losing money should be greater than the desire to make money.
The reason why ordinary people are most likely to lose money when starting a business;
1. I did something that I couldn’t do with my own abilities.
2. Believing in a friend (partner) who should not have been trusted.
3. I invested money that I couldn’t afford to lose (borrowing money to start a business instead of using my savings).
4. The expenditure cost is too high (labor and rent), and the business income is high, but the profit margin is low.
5. Did something that does not conform to market rules (taking shortcuts)
6. Not preparing enough cash flow.
For example, young artistic women are very fond of opening stores. Especially flower shops, coffee shops, and bakeries are commonly known as the three major spendthrift projects that kill young women’s entrepreneurial dreams.
Many innocent and pure girls carry a passion and hope for beauty, only seeing the inspiring entrepreneurial stories behind them without seeing the various costs that others have paid behind their backs.
In a new first tier city like Hangzhou, opening a flower shop requires at least 100000 to 200000 yuan in rent, utilities, and various business taxes, or even more. In addition, there are also supply chain, labor costs and losses, and how many flowers (sales) need to be sold every day to match the daily expenditure costs. These are all issues you need to consider.
Entrepreneurship is not as simple as we imagine, it requires careful consideration of all aspects.
My cousin (real story) is a staff member of a small county city public institution. His childhood friend told him that opening a “two yuan store” could earn a lot of money. He had already found the supplier channels and addresses, but he still lacked start-up capital, so he found his cousin as an investor.
My cousin thought that his friends who grew up together since childhood wouldn’t cheat him, so he invested all the money he spent on buying a house (150000 yuan). I didn’t expect that two years later, due to the pandemic, the store didn’t make any money, and my cousin’s tens of thousands of principal were all wasted, let alone interest.
This is believing in people who should not be trusted. There are too many temptations and risks on the road to entrepreneurship, and anything related to money needs to be cautious. Besides, brothers also need to settle accounts clearly!
Here are some suggestions for ordinary people to combine their own experiences and lessons learned in entrepreneurship.
1. Ordinary people choose light entrepreneurship as the most suitable option.
For example, earning money through skills (such as writing for an account, waiting until the volume of business grows too busy to hire an assistant)
2. Provide the optimal solution based on one’s own abilities and practical experience.
For example, if you open a store without knowing the cost accounting, rental location, manpower and time, shelf life of goods, etc., the result will inevitably end in failure. Your ability circle is only a part of opening a store, but you have to be a boss. Who will compensate if you don’t compensate.
3. Test the waters within your own affordability.
For example, if you have a deposit of 100000 yuan and want to start a business, you can only lose up to 100000 yuan at most. However, you must not exceed this number or even borrow money. Only by testing the waters within your own affordability can you ensure a higher chance of success. Even if you lose money, it’s okay.
4. Do not partner with relatives and friends.
My cousin is a living example. In many people’s minds, relatives and friends are trustworthy people. But when it comes to matters involving interests and money, many grudges will arise, which is human nature. Therefore, the best relatives and friends are to stay away from each other and not disturb each other.
The core of entrepreneurship is always to make yourself win, rather than letting others pull you to win. You can accomplish something, and the core always depends on yourself rather than your family and friends.
To sum up, ordinary people should always respect common sense and their own ability circle when starting a business, not only seeing the possibility of success but also the risk of failure.
Above, let’s encourage each other!
