What does an entrepreneur has to face? (part 3)

In this series of articles, I am writing about the difficulties a businessman faces in the entrepreneurship path. Before you continue reading this post I invite you to read the firs two posts where I mention the difficulty to acquire financial resources and the new roles an entrepreneur must assume. In the third part of this series I will write again about financial resources but analyzing different aspects.

In this way we return to our starting point. When you want to start an entrepreneurship you will need financial resources. As I exposed in the first part of this series this is a difficult task, taking into account that a bank will require you to have grants for a bank credit and in many countries around the world venture capital is a scarce resource.

Additional to these difficulties presented by the people and firms that could give us our first financial resources, in other cases the difficulties come from our own minds. What I am talking about is that even if we are lucky enough to have a firm willing to invest in our project, sometimes we are not ready to give away holdings of our business in exchange for the financial resources. In this way, without grants and holdings we return to the starting point.

Unfortunately and even if the entrepreneur doesn’t want to give away his shares, he will need capital in order to succeed. With these resources he can invest in his business and if they are used wisely it is most likely that his business will be profitable with time. Thereby even though the entrepreneur sees this as loosing part of his business it is very important to remember that it is better to have a part of a thriving business that having a 100% of a miserable business.

My take on this subject is that making this mistake is not having a long-term view. In this way I will say that this problem or difficulty is attached to education and business view that the person has. Sadly in many countries we have learned not to dream big and this is why many times entrepreneurs think in small business but not in million dollar businesses. This type of projects will require a big investment obviously in exchange of company holdings.

In this way in this brief series of articles, I presented some of the difficulties that entrepreneurs face. Once again I reiterate that it is not my intention to discourage entrepreneurs, but I wanted to show them some of the complications they might have to face so they can analyze which are the possibilities they have.

Image taken from Flickr.com

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