Americans are launching their own businesses at younger and younger ages every year. The itch to hack it away from the corporate blanket is motivated by many factors although, autonomy seems to be the nucleus of most of them. According to a new study conducted by Fundrocket, the number one reason young professionals decide to start their own enterprises is the satisfaction of being their own boss, with making more money following close behind.
Unfortunately, despite this universal desire, the US is ranked 53rd in the world as far as entrepreneurship is concerned, or more intimately phrased: only one in three ventures makes it to the 10-year mark in America.
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The inspiration for becoming a proprietor varies across gender and industry as it turns out. For women, the primary motivators are a passion, flexible hours, and the desire to change the world. This makes sense coupled with an independent statistic that reported women are more likely to launch businesses in retail, health care, and education. For men, the principal objectives are becoming their own boss, making more money, and obtaining more ownership and responsibility.
Practical concerns are also indebted to these factors. Women owners were much more likely than men to cite stress and a lack of time to complete important tasks as a drawback to owning their own business, whereas men more often bemoaned competition, continual funding, scaling the business and legal difficulties as their biggest challenges.
So what does it take?
Aspiring moguls that occasioned “more flexible hours” as the incentive to start their business await some severe disappointment, at least initially. As you might have either guessed or noted above, starting your own business demands a lot of time and energy. However long you think it will take you to get your corporation off the ground, the authors over at Fundrocket suggest you double that estimation for expectation’s sake.
Ideally, the commitment survives on the confidence that the venture will be viable in its respective market. Eighty-four percent of successful business owners said that even though managing and marketing for their enterprises require grueling hours, they’re still clocking in fewer hours overall compared to when they were employed by firms (the average disparity was to the tune of fourteen hours a week).
It hardly needs to be said, that financial sacrifices pave the way to any successful franchise. Sixty-six percent of current business owners had to dip into personal savings to fund their burgeoning companies, 26% got assistance from family members, 23% utilized credit cards, and 20% took out business loans.-the most successful business went this route in fact while the most unstable entrepreneurs went opted to utilized plastic.
The gold standard
Even if you’ve cracked the self-employment code, and you’ve managed to acquire a steady revenue stream, by and large, it takes about two to three years for a business to be considered profitable. When expenses necessary to keep feeding the growing venture outweighed their salaries, many young entrepreneurs cited a list of model companies that kept them energized during their journey. Amazon, interestingly enough, was mentioned the most frequently.
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