Sino Hero Foods Ltd

I get asked all too often this question especially so nowadays particularly from senior corporate executives on whether they should start their own business.

Most of the times my answer is a blatant NO ! This often surprises people as they assume that being an entrepreneur I would be more encouraging and upbeat about prospects for would be entrepreneurs.

If you are one of those looking to start your own venture, the problems I usually highlight are ;

1. People want to start businesses for all the wrong reasons: Some want to work for themselves and not for anyone else (without considering that not getting a steady paycheck starts to hurt sooner than they think) Also, remember, learn to follow before you wish to command. If you have authority issues like lots of entrepreneurs do, make sure to remind yourself you now answer to not one boss but to multiple bosses like investors, customers, logistics guys (yes), cleaning staff in addition to oneself ! Plus now its all on your time and money so no more ' the boss doesn't get it' story. Trust me I miss my ex-boss sometimes and you will too. Life's not much fun when you are out of escuses !

2. Some cant stand the bureaucracy  while others cant stand being forced to do boring mundane work like accounting, bookeeping or putting up with difficult customers. Guess what? Welcome to the real world of Entrepreneurship ! You have to be prepared to do everything and anything to keep the ship afloat and mostly it will be without the help of the large corporate machine that some ex-senior executives are used to. Difficult customers are the norm rather than the exception especially in a new business as you are no longer 'protected' by the benign corporate umbrella. I was speaking to a senior corporate executive who started his business and now has to make sales pitches to his previous company which include setting up appointments for hour long power point presentations and Q @ A sessions from the same junior guys he helped train. Ouch that hurts ! So you need to check in your ego before even considering starting your business.  .

3. Learn to respect the little guys : Remember the accountant or shipping clerk you never knew existed? Well he'll have to be your new best friend if you wish to get any real work done in a timely and professional manner and actually get paid. 'Team' now doesnt mean top guys going out for all night drinks but rather you sitting with the back office guys sorting out the accounts and the logistics and the brand campaign that doesnt sound quite right despite the hours clicking away. You ready for that ? 

4. Risk vs Rewards : This is particularly relevant for senior corporate executives considering a jump to entrepreneurship. Sometimes it is easy to lose perspecitve on how HARD life on the outside track really is. No more business class travel, no housing or kids education allowance, no company car and driver, no expensing posh meals and above all no more guaranteed bonuses and stock options. Are you ready for this ? And more importantly is this a rational decision to give all this up. Reality is that in the past  decade corporate salaries, bonuses and stock options have balooned to such an extent especially in developing countries like India and China that it is very difficult in the best of circumstances to ever make that same amount in a start up business. Make sure you account correctly for the REAL costs of chasing the dream and not end in the nightmare of harsh reality if it doesnt quite work out.

5. Its very lonely out there : One of the best advise I got when starting my business was to be prepared for a long winding path of loneliness. No more corporate team building sessions or office gossip by the coffee machine or even the hourly 'strategy' sessions. Its amazing how the phone slowly stops ringing once you step out of the corporate world. Make sure you have an adequate support group of fellow entrepreneurs, friends and family just to bounce ideas off and keep your sanity. There will be moments of self doubt and then there will be even more moments of even greater self doubt. Do you have the inner confidence to stay the course ? And more importantly is it worthwhile to stay the course? What is the end game ? When do you call it  cutting losses as a smart strategy and when is it called being a LOSER ?

6. They myth of going back or ' Plan B : A lot of would be entrepreneurs from a corporate background rationalize that if all else fails they can always slot back into their previous roles. Trust me it is'nt quite that simple. There are only few limited senior roles and they arent being kept warm just so that you can be welcomed back once you've done ' your own thing' while your collegues have been slogging away in the corporate grind.  Also the problem with ' Plan B' is that you think you have a safety net so you do not give it your best shot in Plan A i.e making the business work and going all out to make it happen. Business is a highly competitive sport and you cant win if you are fighting the guys who are hungrier than you and more motivated and more passionate that you as they do not have Plan B in their gameplan !

If you still want to go out on your own, wish you all the best ! May the best man (or woman ) win !