Mostly, the young generation is associated with the word start-up. Although, instances are there where middle age and even old age people also planning for start-up business after superannuation. However, when it comes to the factor of high ambition, a start-up has enough charisma to attract youth.
Beginning a company from a grass-roots level with low investment provides lifetime experience and makes a person witness several thrilling incidents. But it is not always mandatory that start-up always will lead you towards the road to success. Recent studies proved that almost 50% of start-up shut down every year due to lack of fund and incapability of the owner.
After completing high school or even completing graduation, a person may start planning a business with a completely new thought. But have you explored both the pros and cons of such a start-up? If not, then give it a read, as it may help you decide whether to join a start-up.
1. Increase your responsibility –
When a person sets up for a start-up, there are many things to consider. Choosing a suitable locale, arranging for the fund, convincing an investor, marketing strategy, maintaining day-to-day accounts, producing goods, and what not! It may sound really hazardous. Whether you have to take help from others or you need to segregate each and everything on your own.
When you are going to hire 1 or 2 persons, it will air up your cost. Even if you ask your friends to join, they will also ask for shares of the company. Therefore, it is better to handle everything on your own. Moreover, it will make you responsible for managing all the work. Though at first, it may trouble you, later, it remains no longer a headache.
2. Compel you to face numerous challenging situation –
While many people love to face challenges, others may not. Therefore, beginning a career in a start-up is more like living life in an adverse situation.
Therefore, if you are one of them who never afraid of the adverse situation, then this is perfect for beginning your career. Generally, if you heard an interview of a start-up owner, you can find how eventful his life was initially.
Facing day to day challenges were an integral part of his life. But, on the other hand, it made him more confident because nobody was there to give suggestions because he was the sole owner of the company.
Whether it is solving the problem of the fund at the last moment or ending up with raw material for urgent order all, have to manage by you. Confronting adverse situation repeatedly will make a person future-ready and builds confidence.
3. Get the chance of learning from mistakes –
Once a famous person said, ‘My mistakes are my life. Well, this concept is universal in every aspect of life. Whereas, by incorporating the idea of start-up, you can get numerous scope of learning from mistakes. It is not at all a matter of shame that you failed to attract investor. Unless you do not know the etiquette to be followed or approaching tone, how can you convince one?
Through the start-up journey, every beginner gets a clear cut idea of what to follow and what to avoid. You may have read several books on business, but the knowledge will remain incomplete till you are not facing real scenarios. Therefore, by performing several mistakes, you can understand how to plan the strategies to ask investors for investment.
4. Make you a good sales person –
As mentioned, there might not be any helping hand to share the workload with you in the beginning. Therefore, the business should not stop as it is the one and only way to generate revenue. Without earning good revenue, it is impossible to repay the loan as well as assure the investor of his good return. For this reason, initially, you have to handle the sales part too.
We all know to attract a person one should possess good communication skill. Some have the inerrant communicating skill, whereas some may have to improve. So while you have no option left without selling the products at the initial stage, start working on them. It will improve communication and help you to generate revenue.
1. Less secured source of income:
As mentioned above, not all start-up will lead you towards the road to success. Besides, there is a high chance of losing hold of everything.
Beginning a start-up is more like a one-man army rather than getting helping hands. It has been observed that being incapable of maintaining everything on own, a person fail to balance between each aspect and ultimately the idea of start-up dropped badly.
For this reason, if you want a secured source of income, it is better to stay away from the start-up concept.
2. Unwanted debt:
To begin the business, undoubtedly, there is a need for fund. Instead of asking for financial help from your family, one possible fund source can be borrowing money from money lenders. There are many lending companies from where a person can take out long term loans from direct lenders.
Although it may sound good, if a borrower defaults to repay the loan, the lender will not easily leave him. Cases have been witnessed where even the borrower need to face CCJ and experienced extremely worst scenarios.
Moreover, as it is a start-up and the idea may be a success or not, hardly one can predict. Therefore, borrowing money to arrange for the fund may increase unwanted debt against your credit profile.
3. Lack of customer:
Although it requires hard work and good strategy but accept it or not achieving success in start-up also depends upon luck. Even after running the same business at same place a trader is earning high profit while other is waiting for customers. Lack of customer can enhance huge chance of upcoming loss.
Facing unprofitability in the beginning of a business can cost a trader really high. Therefore, before choosing your career as a start-up owner think twice.