Since we understood the words: entrepreneur, startups, and career, at least once, we’ve all discussed a startup idea with our friends. Mostly it goes like “let’s start our own cafe, how hard can it be?” Turns out, pretty hard. Be it any business, it’s easier said than done. Many employees still plan to begin their journey from employee to entrepreneur.
Having said that, it’s scary, to leave the comfort of your office or desk and build something of your own. You must have had multifarious excuses not to do so.
We understand your concern, therefore, we have 5 reasons why being an entrepreneur from an employee can help you become a better entrepreneur.
Why Ex-employees Make Better Entrepreneurs
As discussed, fear is one of the main hidden- or not- reasons when it comes to quitting your job to become an entrepreneur. How do we face our fears? By picturing (and working towards) the end goals, the fruition, and the benefits.
1. You learn the importance of discipline and hard work
Becoming an entrepreneur is inspiring yet challenging. Most entrepreneurs are crazy excited about the fact that they are able to do what they love and make a living out of it. However, amid that, many lack the dedication and hard work it requires.
Be it job or entrepreneurship, you require dedication and hard work that won’t shake. This is where working as an employee (previously) helps. A student starting a startup might not always put in the sweat and hours required, however, employees know the value of discipline and have already worked hard. Because they have fought “I don’t feel like doing it” several times, and won.
2. Savings to start and money management
Around 60% of people who start a business are between the ages of 40 and 60. This is when an average person brings financial stability to life. Not many people have inherited wealth to start a company, working as an employee can help you save the required amount to do so.
Entrepreneurship, if done right, can make you rich- a billionaire level rich. However, many new entrepreneurs don’t always know what to do with it. Some of us were not trained to – or did not prefer to – save our pocket money. Little did we know its importance.
According to SCORE, and a U.S. based bank study, poor cash management leads to 82% of business failures.
Be it an investment in your own company or in some other company, one needs to be careful with money. One of the greatest advantages of becoming an entrepreneur after working as an employee is you know how, where, and when to spend it. Above all, you know there is no limit to your earnings to do so.
3. You are people-ready with polished skills
A very important and big segment to win while becoming an entrepreneur is building a network. Entrepreneurship is not sitting at a desk, finishing your work, and never having to deal with people around. You need stakeholders, customers, experts in different niches, and investors.
Being an employee helps with that, you make meaningful connections and network with some very mindful and motivated people, and they can prove to be hidden gems when required in your business.
Also, after working as a part of a team, you know how to create your own. In fact, you know it better as you being in the inner circle know where your employer lacked.
Above that, working with them helps you improve your skills. From training by employers and mentors to coworkers teaching the technical know-how, both soft skills and hard skills are polished and evolved while working as an employee. Thus, making you a better entrepreneur.
4. Mistakes made
Entrepreneurs or employees, we all make mistakes and are going to continue doing so, hopefully, while outgrowing them.
So there are only two things that can be done:
- Learn from others’ mistakes
- Understand your mistakes and outgrow them
The catch is, types and affordability of mistakes, while obviously, ruling out or the potential ones. We make mistakes only when we are doing something, that is where an ex-employee and now- an entrepreneur has an upper hand. They have learned from -so many- mistakes made while working as an employee that they now know which ones not to make when self-employed.
Read more: 6 mistakes a startup should avoid
An average small business requires $10,000 as capital investment. On one hand, the funding options and investors seem more approachable now than ever. However, on the other hand, due to the increasing number of startups, investors are facing a hard time to figure out which ones would be profitable.
Having said that, entrepreneurs with prior work experience as an employee bring more credibility to the table than the freshers. Therefore, startup owners with previous work experience carry high chances of wooing investors with the same.
Real Stories to Inspire Your Employee to Entrepreneur Journey
Jan Koum: The founder of WhatsApp, Jan Koum, rose from poverty to creating one of the leading companies. His journey and idea of creating WhatsApp began as he started working as an infrastructure engineer under Yahoo!
Jeff Bezos: One of the richest men in the world, Jeff Bezos, started his career by working in an investment firm, D.E. Shaw. He had his share of success in the corporate world and became the youngest Senior Vice President at the firm. However, that did not stop him from deciding to quit his job to open an online book store, Amazon.
Sachin Bansal: An Indian billionaire technology entrepreneur, Sachin Bansal, worked at Amazon Web Services after working at Techspan. However, in 2007, Sachin quit his job, and along with his co-founder Binny Bansal, founded Flipkart.
Both, an employee and an entrepreneur grow at their best when focused on working on themselves. With that, the work that is done on self as an employee can surprise you with its potential to help you as an entrepreneur.