To the moon and back!
Ideally, on a fixed date of every month, you get a salary that is used to pay CC Bill, EMI, and other bills as per schedule. An approximate monthly expense provision is made and then you make investments in Mutual Funds, Stocks, ETFs, ULIPs, etc. Some investments are schedule-forced as well, like recurring deposits and insurances. And, then, in the end, you have to spend some fun money on leisure activities. (Not everyone spends money in this manner and that’s a topic of discussion for some other day. )
Every now and then you think about starting up by leaving the job because you have an idea! This idea might have originated due to some pain point experienced by you or from a dream that you had and sometimes from a simple vision one might have.
You can’t believe how good an idea you have got and you think that this could change the world. You think that it’s a unique idea and you want to protect the idea (theme for a future post: Ideas are a dime a dozen.) or not. Anyway, you draw a quick plan on tissue paper while having a beer with friends and start to plan out in detail how you would make a dent in the universe. You stay in a sweet mild hangover of this intoxication caused by the entrepreneurial-bug-concoction. You are euphoric.
In a few days or weeks, it dawns upon you that you can’t really leave the current routine of getting paid on a regular basis behind since you have heard that entrepreneurs don’t really get paid or at least, not to the levels of a job in the initial years and you start to think how would you manage your financial affairs? This worry takes over and eventually the zeal dies, one more time. Until it shall kindle again.
Should I, should I not? Every entrepreneur or almost every entrepreneur thinks this. Some people come from business families so for quite a lot of them the decision is slightly easy since they don’t see a business with spectacles of hype rather they measure it as risk vs rewards. But for people with a salaried background, it’s a big risk to leave a certain recurring paycheck to uncertainties of the business world. They struggle to weigh it in “risk vs reward” and instead either get too starry-eyed or a little too cynical. Either they think of being a Billionaire or being broke. The reality is often somewhere in between.
Thinking Risk vs Reward
For the cynic inside: yes, you might go completely broke in business due to various reasons controllable or not. All startups have a One hundred percent chance of failure. But you know what? You already know how to deal with this issue. You carry of the risk of being broke in a job too and so in life. Think about it. How do you over-come it? You do know this one, don’t you?
By planning to succeed and yet being prepared for failure.
How to decide?
Always do a pre-post-mortem of your plan. Think this way.
You have an idea and you should dream big about it. And, then you should think about what happens if it fails. Why would it fail? Narrow down to the specific points which might kill it and now expand on that individual topic and how could you prevent/overcome those? It will enable you to think better.
Remember, this is exactly how you do it even today. That’s why you take term insurance and try to stay fit and eat healthily and drive safely and learn and invest in up-skilling yourself etc because you already think about failure, you just prepare well for it without realizing it.
P.S. : Do tell us about your fears. ‘Iss hamam main sab nange hain!’. We will share with you how could you alleviate most of those, as we did.