The true litmus-test of your mental fitness as an entrepreneur

[mr_engineer]

Let's say, you're working a 9-5 and you're dreaming of starting your own business. You go, you talk to your parents about it and they say 'If this doesn't work, you'll end up homeless'. 

How much does the thought of ending up homeless scare you? Do you see yourself as being able to survive that, as an entrepreneur? UItimately, as an entrepreneur, making money boils down to your ability to create value, your creativity. Do you believe that you will be able to use your abilities to survive that situation? Or, are you an employee who thinks that your degree is very important, someone who rests on their laurels?

By the same token, how do you invest money? Do you get a monthly paycheck, that you save over time and invest into index-funds/mutual funds? Or, do you come up with creative ideas that you work on, and invest money into those? You create your own assets? What percentage of your finances depend on what you've earned in the past, vs what you make from passion-projects? 

If you believe that you can survive being homeless, that you have the potential to become a rags-to-riches story, then, you can save your business from bankruptcy, no matter how many crises hit your business. You have the type of personality that can save their business from bankruptcy and who can protect their employees' jobs no matter how tough the economy gets/how tough the conditions get. Then you are mentally fit to be an entrepreneur long-term. 

Edited October 20, 2023 by mr_engineer

[hyruga]

Don't think you should ever think of surviving homelessness. That's not what an entrepreneur will be focusing on. They don't think about surviving that. Instead, they are thinking about how not to be in that situation (homeless) no matter what. 

There are many girls who won't really be able to survive homelessness but the thought of it scared them so much that they are able to do well in life. They are using fear to conquer fear.

Edited October 20, 2023 by hyruga

[mr_engineer]

6 hours ago, hyruga said:

Don't think you should ever think of surviving homelessness. That's not what an entrepreneur will be focusing on. They don't think about surviving that. Instead, they are thinking about how not to be in that situation (homeless) no matter what. 

There are many girls who won't really be able to survive homelessness but the thought of it scared them so much that they are able to do well in life. They are using fear to conquer fear.

Of course, practically, you don't want to end up homeless. The thing, though, is that the fear of ending up homeless is something that prevents a lot of 9-5'ers from taking the leap of faith. They are so attached to security that no matter how much potential they see in their business, they will never quit their jobs, because 'security'. And 'if I screw it up, I end up homeless'. This fear is an issue of mental fitness and this would be something to work towards, as an entrepreneur. 

Let's say it's been a couple of years since you quit your job, you're doing alright in your business, and COVID strikes. And your business goes to shit. What will you do? Will you go back to working a job, cuz 'you gotta eat'? Or, will you be creative and do something else as an entrepreneur? 

[Felliks]

On 10/21/2023 at 6:27 AM, mr_engineer said:

Will you go back to working a job, cuz 'you gotta eat'? Or, will you be creative and do something else as an entrepreneur? 

Hopefully, the business model is stable enough so it provides some savings. Many recommend multiple-year savings for the owner at least.

Not the ones just starting before COVID (bummer) but that's over now, with lessons learned.

If I can't sustain the cash flow closing the company is the best choice providing others don't rely on it (if they do, huge bummer, more work.)

Then keep those relationships solid until the COVID is over, and resume operation.

Why didn't many companies do that? I don't know. Many could have saved themselves from going under by simply pausing.

Ending a business? What is that? How can a business 'end' just like that? If it offers a service or a product can't it resume after the pandemic? Some could. Why didn't they?

[mr_engineer]

5 hours ago, Felliks said:

Then keep those relationships solid until the COVID is over, and resume operation.

What if some of them get screwed cuz you had to pause operations? What if they don't forgive you for doing so? Lay-offs are a part of the problem here. 

5 hours ago, Felliks said:

Why didn't many companies do that? I don't know. Many could have saved themselves from going under by simply pausing.

And many couldn't have. Time tends to be a huge factor when it comes to a lot of companies' USP/competitive edge. All of the high-efficiency businesses go to shit, the moment efficiency goes out of demand! 

5 hours ago, Felliks said:

Ending a business? What is that? How can a business 'end' just like that? If it offers a service or a product can't it resume after the pandemic? Some could. Why didn't they?

Market-conditions get changed forever when something this big strikes. Which is why it takes creativity to 'resume' after the pandemic. You have to start afresh, honestly. Those who had real skills before the pandemic would be fine, those who were resting on their laurels are in deep shit.