It’s going to take more time and money than you think and you will likely fail.

When I got out of the Marine Corps I had a nice amount of money saved up, had decent equity in my townhouse and all my credit cards were paid off. This is was three years ago.

In those three years, I’ve invested all that money into two different businesses – one of which failed and the other is still unfunded and not quite off the ground. In that timeframe, I held a few part time jobs, but nothing I ever really took seriously because I always felt my business(es) needed me full time, plus overtime. 

It’s going to take more time and money than you think and you will likely fail.

I’m facing foreclosure on my townhouse, I have a mountain of credit card debt and this could ultimately lead me to bankruptcy. It’s a crappy place to be, but it’s a place that many, many, many entrepreneurs find themselves.  

“A study commissioned by the Ewing Marion Kauffman Foundation in Kansas City, Mo., which supports entrepreneurial education, found that almost one in five Americans who filed for personal bankruptcy protection in recent years had operated businesses - small companies, home enterprises or start-ups - within two years of filing for bankruptcy.”  From a NY Times article – July 2005 

It’s going to take more time and money than you think and you will likely fail.

“Entrepreneurship is often a process of trial and error. No one would accuse Henry Ford of being an unsuccessful entrepreneur. But Ford started two car companies that failed before he struck gold with Ford Motor Company.” 

“If entrepreneurs of failed businesses are denied debt discharge, they may take up safer wage and salary jobs rather than risk starting up a new venture. An unintended consequence of the legislation, therefore, may be the loss of another Henry Ford, Michael Dell, or Bill Gates. And lowering the level of asset protection provided to homes and personal property means even higher stakes for start-ups, deterring would-be entrepreneurs from risking creative destruction.”

The American Magazine “Forgive Us Our Debts” Jan/Feb 2007

“…they may take up safer wage and salary jobs rather than risk starting up a new venture.” Not quitting that job right away in the first place is some food for thought to really consider.

Risking Creative Destruction

Being an entrepreneur most definitely implies that you are risking creative destruction – you will put it all on the line for what you believe in and are passionate about.  You will want to dedicate all your time to it – just be sure you realize that: 

1. It will take more time than you think
2. It will cost more money than you think
3. It will be much harder than you think
4. You will make mistakes (that you will learn a great deal from)
5. You will likely fail the first time
   

Because of the list above – keeping a day job – be it full time or part time will help you negate some of that creative destruction. Because going into debt will:

1. Cause a great deal of STRESS (stress has many ugly effects on people)
2. Hinder your ability to perform
3. Hurt morale
4. Take the focus off of your goals and startup

Final Thought

I’m stubborn – don’t be. Be smarter. Once you start down the path of creating and growing your startup it will consume you – you will give it more of your time, more of your energy and more of yourself. You will not like to or want to think about taking a job – it’s easier to keep the job you already have!!