Your Own Business – A Case Study on Its Risks and Rewards

Your Own Business – A Case Study on Its Risks and Rewards

Introduction

Entrepreneurial ventures are a important component of the financial system. For the individual entrepreneur the prospective exists to fulfill dreams and grow to be financially independent. More than time we have noticed entrepreneurial firms improve into powerhouses, but also seemingly profitable business that went down the drain. An intriguing observation is that business people in just thriving organizations are from time to time unhappy and even depressed. This scenario research highlights the numerous threats and rewards that some of these business owners working experience (names are fictional).

When almost everything goes completely wrong

Eric was in his late forties when an entrepreneurial possibility presented itself. He was an accountant by profession and in a senior placement at a medium-sized organization. A new franchise in the automotive marketplace was supplied to him in one more city. The option was way too great to dismiss. Eric resigned, marketed his household and took the cash to start off the business.

The franchise did not transform out to be what was promised. The franchisor was not extremely truthful and Eric was not an entrepreneur at heart. He was passionate about cars, but not about the more complex areas thereof. In the stop the adhering to prospective pitfalls grew to become reality and it experienced severe outcomes:

  • Social hazard. When Eric and his wife left town they still left their supporting composition and circle of good friends powering. He labored extended several hours to build the enterprise. The regular and pleasant social weekend get-togethers were being a thing of the past. Their teenage daughter also experienced really serious issues that they found hard to cope with.
  • Economical possibility. At some point the organization collapsed and Eric was declared bankrupt. At this stage he was in his early fifties.
  • Career risk. Eric resigned from a very good career with a great pension fund. When all the things turned sour he tried using to go back to his outdated company. There had been no vacancies. He accepted a reduced compensated work as an operational supervisor at a modest entrepreneurial problem.
  • Psychological possibility. At some point also a lot of issues went incorrect with Eric. He got divorced, is incredibly bitter right now and frequently remarks that he desires to do the job until the day that he dies.

Is it value it?

Jack was in his mid thirties when he and his companions experienced the prospect to do a administration buy-out of the producing firm that they worked for. More than the very last seven many years they turned the organization about from earning a reduction to a corporation that is doing exceptionally properly. Outsiders would say that this is the great situation to be in. Jack is encountering the pursuing reward:

  • Economic benefits. Jack became a greenback millionaire. He constantly lived within his indicates and he and his family can conveniently sustain a excellent dwelling without having him needing to operate an excess working day in his life.

Sadly Jack also sees himself as currently being trapped in a catch-22 condition. He feels that the price he pays for the financial rewards is much too significant. He generally expresses the following unfavorable impacts on his life:

  • Social hazards. Jack had used so significantly time out of the state that he grew aside from his close friends and household. He feels he was not there for his father when he passed away on one particular of these trips. He also feels that his children’s is escalating up and he is not there to expertise it.
  • Psychological challenges. Jack finds it tough to balance the work condition and his personal existence. At this phase he has a major challenge with despair. Fortuitously his colleagues guidance him exceptionally well and they have formulated a plan for all of them to exit the business enterprise in the near foreseeable future.

The fruits of success

Marc is a serial entrepreneur who begun his very first company in his early twenties two decades ago. He is incredibly formidable, made numerous blunders and went bankrupt twice. Six years back he begun a company in a market place of property growth. He has an complete enthusiasm for this line of enterprise and in a limited time period turned extremely successful. He thoroughly enjoys his good results and thinks that all the threat-having and really hard get the job done was worthwhile. He ordeals his rewards as follows:

  • Economic rewards. Marc is truly worth various million dollars and he utilised ample of this income to give him a passive income that affords him and his family members a life of luxury.
  • Social rewards. Marc was often a incredibly social person and managed to continue to keep his social existence intact. Right now he is enjoying a great deal of his social pursuits with buddies on abroad trips and at his getaway farm and seashore house.
  • Independence rewards. Marc constantly savored staying his very own manager. He typically said that he would fairly sleep in a park than operate for someone else. In the conclusion this attitude and dedication paid off.
  • Expansion benefits. On a personal degree Marc utilised the prospect to mature as a individual. He realized to fly, did a good deal of self-research to increase himself and folks respect him in all walks of life.
  • Contribution benefits. The ultimate reward is the means to give. Marc is giving a substantial proportion of his time and cash to charity.

Summary

To have your individual enterprise can seriously be the very best detail that you ever do (for yourselves and some others). It is, nevertheless, quite essential to objectively glimpse at it and to make guaranteed that it fits your character and risk profile. Entrepreneurship is not for all people. The possible rewards need to be well balanced from the possible challenges.

Copyright© 2008 – Wim Venter