Entrepreneurship Essay

692 Words3 Pages
Benefits of entrepreneurship • Be your own boss o You get to make the rules o Hire who you want to hire o Have your work place the way you want to have it o You make sure that the company reflects your personality • Make lots of money • Make a difference—community, country, society • Contribute to others— • FUN! Drawbacks of Entrepreneurship • You can lose everything you have o Most the time you ask family and friends for money to invest ! 64% of the time, the company will fail in 6 years ! 54% fail in 4 years ! 35% fail in 2 years o don’t co-sign a bank loan • you lose your salary/for of income • loneliness is a big part of being an entrepreneurship • Stress, worry • You need to be available 24/7, work long hours Chapter 1 and then 3 10 Deadly Mistakes/sins • 1) Undercapitalization: not having enough money to continue your business o You need to have all the money you need until you hit breakeven— because every business is going to lose money when it starts out o Operational losses and capital expenditures(purchasing assets)—when you plan for these, multiply them by 1 1/2 o When you run out of money—you die (fail) • 2) Bad management—fail because a company is run by someone that doesn’t know what they are doing o this one is correctable (to some degree) • 3) No clear competitive advantage—you have to have something that you do better than anyone else • 4) Bad Marketing Plan—marketing is (according to the Prof.) the most important skill set to have o if you don’t have sales—it doesn’t matter what else you have—you will not be successful o if you have a bad marketing plan—your revenue will grow slower than you thought, your losses will be larger, and the cash that you had planned for will be gone before you though ! estimate the cost of your losses for one year (or breakeven) and multiply that by a time and a half • 5) Bad

More about Entrepreneurship Essay

Open Document