The Cold, Hard Truth: Why Starting a Business Can Be a Terrible Idea

The Cold, Hard Truth: Why Starting a Business Can Be a Terrible Idea

How I Made $10K in a Week with Zero Effort

How I Quit My 9-5 and Started Earning Six Figures

Get Rich Quick: My Simple Formula for Easy Money

Social media is filled with posts and reels of glamorous entrepreneurs, strolling through Italy, sitting on the hood of their Maserati, and seemingly making six or seven-figures a year without leaving their couch. 

It probably has you thinking, ‘Hey, I should start a business!’ And maybe you should… but before you dive in, let’s take a deep breath and consider the dark side of entrepreneurship.

Risky Business: The High Stakes of Entrepreneurship

When White Oak started to grow, I knew cash flows could ebb and flow.  Some clients were great at paying on time, others had about as much follow through as my 9 year old. 

According to SmallBizTrends, 45% of businesses experience late payments from clients.

In addition to maintaining a solid cash reserve, we decided to secure a line of credit as a precaution.

Banks wanted collateral.  In a small business like ours, that meant being personally on the hook for the loan, should we ever use it.  The thought of potentially losing my family's home because some clients were “unable” to pay their bills on time was a HUGE risk for me personally. 

Is that a risk you are comfortable taking on?  And if the financial risks don’t deter you, let’s talk about the time commitment

Forget the 4-Hour Work Week: The Real Time Investment of Starting a Business

Much like raising a child, building a business can require relentless commitment.  When starting out, you in charge of:

Marketing

Lead generation

Customer acquisition

Sales

Project management

Delivery

Accounting

IT

My family and I once spent my youngest son’s birthday at the Minnesota Twins’ opening game against the Kansas City Royals.  Around the 4th inning I got a call from one of our team members.  Everyone knew I was off for the day so I let it go to voicemail.  That was then followed by a text message.  

And then another.

I ended up spending the majority of the 6th inning reaching on the phone solving a mini-crisis with a partner of ours.  

As an entrepreneur, you are never really off the clock.  These types of interruptions are common.  Your evenings and weekends are filled with various tasks, sending invoices, updating websites, & finalizing contracts.  Even your down time becomes filtered by work.  Every article you read becomes framed in “How can I use this to help my company?”

Eventually, it can get better.  But it takes a lot of effort to get to that point. 

And if the relentless time commitment doesn’t wear you down, the stress might. 

Stress: The Silent Killer Lurking in Entrepreneurship

Entrepreneurship is stressful.  YOU are responsible for pretty much everything.

A deal falls through - How are YOU going to hit your revenue targets?  

A client is unhappy - How are YOU going to make it right?

A team member isn’t performing up to par - How are YOU going to course correct?

We had a client who lacked professionalism, to the point we had team members who no longer wanted to work with them.  The stories our team told me sounded more like rushing a fraternity than professional consulting.  

The problem was, this was literally our largest client (by revenue).  

The choice to no longer work with that client was easy.  The hard part was figuring out how that loss of revenue would impact the team.  The team YOU are responsible for.  The team whose families YOU are responsible for.

At times, that stress was nearly debilitating for me.

Is that something YOU want to take on?

The draw of entrepreneurial success stories on social media can be tempting, however, the reality is far less glamorous. Starting a business involves high risks, immense time and effort, and significant stress. The risk of financial instability, the relentless commitment required, and the weight of responsibility can be overwhelming. Trust me, I’ve had more sleepless nights than I’d care to admit, and my stress levels have probably shaved a few years off my life.

Before you embark on your entrepreneurial journey, take a moment to consider whether you’re ready for these challenges. Reflect on your personal and financial situation, your tolerance for risk, and your willingness to sacrifice personal time and mental peace. If you still feel the call, prepare yourself thoroughly, enter with eyes wide open.

And maybe stock up on some extra coffee, you might need it.

Remember, success doesn’t only come from running your own business. There are countless ways to achieve fulfillment and prosperity. Find what works best for you, and don’t be afraid to pursue a path that aligns with your strengths and passions. Entrepreneurship is just one of many roads to success – choose the one that’s right for you. And hey, if you do decide to start a business, at least you’ll have some entertaining stories to share at parties