We live in an era where everyone wants to be the CEO of their own company.
What a fantastic idea.
Many have even pulled out of their jobs to start up their own company. Statistics show that 95% – 99% businesses that begin, die a natural death in no time at all, while the set-man gets very frustrated, so he/ she starts another, and then gets frustrated again. So the stress goes on and on. Tara Durotoye, the CEO of House Of Tara said, “One thing I regret in life is that I never worked for anyone”
Evernote CEO, Phil Libin in a Conference thoughfully highlighted the following:
“I’ve narrowed it down, really boiled it down, to one core piece of advice. If I can only say one thing, and I don’t know you any better, it’s: don’t. Don’t do it. Seriously.
“It’s a very bad idea. Almost certainly, it’s a bad idea. You should not try to start your own company, or at least not for the wrong reasons, which is why most people actually do it. If I know someone is thinking of starting a company for the wrong reasons, I try to discourage people even harder.
“There’s an infinite number of wrong reasons. The single most common one is:
1. Money: A lot of people think that they want to be entrepreneurs because it’s a good way to make money. It just isn’t, that’s just wrong. Depending on how you count, 95% to 99% of companies fail.
If you think starting from scratch is a good way to get a financial return, you’re just bad a math. And you kind of need to be good at it to become an entrepreneur.
If you’re smart enough, if you’re talented enough, if you have the drive, if you have the ability, and you’re motivated by making money, then you should just get a real job instead, like become a banker or an investor or a consultant or something. You’ll be much more likely to make a lot of money over the course of your career than by starting a company.
The second most common wrong reason is:
2. Power: People have this vision of being the CEO of a company they started and being on top of the pyramid. Some people are motivated by that, but that’s not at all what it’s like.
What it’s really like: everyone else is your boss – all of your employees, customers, partners, users, media are your boss. I’ve never had more bosses and needed to account for more people today.
The life of most CEOs is reporting to everyone else, at least that’s what it feels like to me and most CEOs I know. If you want to exercise power and authority over people, join the military or go into politics. Don’t be an entrepreneur.
Wrong reason number 3 is:
3. Boredom: This kind of poorly formed idea that you’re bored from work and want to do something different may be a good start, but it’s not sufficient. If you’re bored at your job, I strongly advice you to stay at your job and keep collecting your paycheck while you figure out what you want to do.
Wrong reason number 4:
4. Flex time: People tell me they want to become entrepreneurs because they want more flexibility in their schedules. They’ll say, ‘I want more time to spend with my kids, and more time to travel and spend more time with my family’. That’s a lie. It doesn’t work like that at all.
If you’re going to be entrepreneur, you will actually get some flex time to be honest. You’ll be able to work any 24 hours a day you want! But you will work more than you were before, much more than anyone else.
In summary: there’s lots of bad reasons to start a company. But there’s only one good, legitimate reason, and I think you know what it is: If you are called to do it and you are ready for it.
Tara Durotoye explained, “Starting your own business is easier said than done. It is better to work with people for a while, so that you can afford yourself the big opportunity of learning and translating your capacity to capability. The ultimate is not starting up your own, the ultimate is the experience and the brand that makes you. If you don’t have consistency, you can’t have a brand. And if everybody is a CEO, then who will support the CEOs?”