The 5 Deadly Sins of Entrepreneurism

The dream of business ownership is like an addiction running through the veins of entrepreneurs.  We crave the start-up and break out into cold sweats at the very thought of a new business opportunity.  When done properly, a start-up is a wonderful thing, blooming with profits and gushing cash flow.  When mismanaged, the beauty tarnishes and becomes a kudzu in our flower bed.

  

So what causes us to lose our way and take what we thought was such a wonderful idea and turn it into such a mess?  For many unenlightened entrepreneurs, they take their eye off the contest and start coveting the prize.  Instead of focusing their serious intention on building an enterprise, they lose focus and just create a job.  Or worse yet, they fall prey to the 5 deadly sins of entrepreneurism:  fame, fortune, leisure, travel and possessions.  Let’s look at these in more detail.

  

1.  Fame

   

You dream of walking into any room in town and being instantly recognized.  People whisper behind your back, ‘say, isn’t that the guy who started that successful business that’s taking the market by storm?’  The mayor takes your call and congressmen call you for your opinion.  That the sort of fame you got in mind?  Well, the reality is that you’re at work so much that your dog doesn’t even remember you anymore and growls when you enter the front door.  

  

2.  Fortune

  

You’re treating everyone in town to dinner at the best places, throwing lavish parties and watching your bank accounts skyrocket.  You’re thinking about opening one of those Swiss bank accounts to shelter your income.  HA!  Most likely, you’re taking a pay cut.  You made pretty good money as a mid-level manager at your former company.  Maybe you were an engineer or salesman and you did pretty good with salary and investments and retirement funds.  But now, you’re employees are making way more than you and your wife is concerned about making the mortgage next month if something doesn’t change.

  

3.  Leisure

  

Do you see yourself in a James Bond movie, relaxing by the pool with bikini-clad supermodels?  Maybe you’re doing something simple like coaching a youth sports team or doing a mission trip to Africa for a few months.  The reality of starting a new business that you’ll be stuck in the office way more nights and weekends than you ever dreamed possible in your worst nightmare.  In fact, in July, you slept in the office more than you slept at home.

  

4.  Travel

   

See the world from your luxury yacht.  You and Robin Leach are sipping champagne and eating caviar in all the best destinations.  Is that your dream?  How about a dream crushing 90-minute commute twice a day in your 2004 Honda?  Will that do?

  

5.  Possessions

   

Possessions tend to be all over the map, depending on the individual.  While some prefer expensive suits and Rolex watches, others want a Bentley or Rolls Royce.   What you’re more likely to get is accounts receivables, inventory and bad debt.

   

There is nothing wrong with wanting nice stuff.  That’s one of the reasons we started these crazy businesses in the first place.  I put myself into that mix with the rest of you.  The problem is, many hopeful entrepreneurs take their eye off the start-up and start focusing on the prize, before the enterprise is even established.  For these people, the prize becomes a poison and bitter reality instead of the comfort.  They dive into the prize before they have earned it.  Instead of keeping their attention focused on creating an efficient enterprise that will generate profits and cash flow without your constant supervision; they spend the new credit line on a ‘much deserved’ vacation or leathers and a hog Harley. 

   

Don’t let the prize get in the way of creating a business enterprise.  Get the work done first and then enjoy the fruits for many years to come.