During economic downturns, more and more corporate employees — faced with unemployment — turn to starting their own ventures and choose to become their own bosses.
But most entrepreneurs fail because they rush in without enough experience. There is another path: building a side business while still employed. This approach isn’t something you only resort to when you have no other options.
The traditional mindset says, “I’ll work for a while to accumulate experience, then start a business.” The model that fits this era is different: you don’t need to work for years first. Instead, build while you study, build while you work. “First do X for a few years, then…” is nothing more than a comfortable excuse to delay. Those who are driven can start early.
The core challenge for independent individuals is that most solo entrepreneurs don’t last 10 years. Some fail in the first five years due to lack of capital. Others fail in the second five years due to a lack of sustained energy — they simply run out of steam.
The wiser small business owners, however, exit at the peak of their venture — handing it off to someone with more capital and more energy — and then start a second one.
For the independent small business owner, knowing when to exit and preserve your energy is the key.
From launching a side business, to full entrepreneurship, to being acquired and exiting — this may well be the natural life cycle of the independent solo operator.