Article Contributed by Chris Smith
We all dream of retiring from the rat race and starting up our own business; having our spheres of influence completely overlap our working lives.
For most of us, the closest we’ll get to this is writing on blogs and social media where our underappreciated ideas can be properly expressed to a few bored souls.
However, a brave few do venture forth and embark upon the road to self-sufficiency. They are lauded as daring and adventurous, and perhaps rightly so, but is it really wise? Are these individuals really making a sound move? I would suggest no.
If they earn lots of money, then sure, but research suggests this just isn’t the case for most. But let’s ignore money for just now (and you really shouldn’t ever be doing this); there are some seriously worrying indications that starting a business can have some very severe and detrimental effects on your [mental] health.
The extra pressure that comes with founding a business, even a small one, can have quite a significant knock on effect on mental wellbeing, and the internet is chock full of anecdotal evidence as even a simple Google search will reveal.
As a business owner, you’re not only responsible for your own finical position (a position very few of us have ever been in but are single-mindedly convinced we could overcome with the same tenacity that saw us, yes that means each of us individually, win two world wars and create the greatest nation on the globe), but the finical wellbeing of others (family and employees) – in essence, their lives in a non-literal sense rest in your hands.
Suicides among small business owners are often noted and rarely exaggerated. For all the gain that can potentially come with starting a business, the non-financial costs are too often overlooked. And that’s in no way suggesting that the financial costs should be played down either. Restaurants are the most commonly opened business in the UK, but in Edinburgh as an example (albeit one chosen to illustrate a point), nine out of ten close within their first year of opening. That’s fairly staggering – you put everything on the line, finance, health, relationship status, for only a 10% shot at remaining afloat. That’s a hell of a roll of the dice.
It might seem like I’m just streaming vitriol in the direction of those that would willingly subject themselves (and their dependants) to these huge risks, and to a degree I am. Having worked with quite a number of tech start-ups, I can assure you that it isn’t something to enter into lightly.
And that, I suppose, is the point I’m attempting to come round to – too many people enter blindly into starting a small business without properly considering not only if they will succeed or not (let’s be kind and assume they have done the requisite research to truly have an idea how their business would be positioned within the market), but how it will take a toll on them emotionally.
Of course, if you have your heart set and believe you can beat the odds (“hey, someone’s got to, right?”), then Britain is a fantastic place to have that shot and there are few places the globe over that offer quite the same levels of support (including Boston and CA). You can get help and advice from a number of sources, from: government grants and start-up incubators to small business tools and inspirational stories.
If you’re smart, well-funded (and God do you need to be funded!), dedicated etc., you undoubtedly have the potential to succeed. But, I’d be pretty damn sure you will before you put yourself through it.
About the Author
I’m Chris and I write about sport, finance, business and everything in between over at Spend It Like Beckham. You can also find me on Twitter and on Facebook. Feel free to say hi!