The 7 Harsh Realities of Starting a Business

hit in the face

Every week I have coffee, lunch, or even dinner with a few entrepreneurs. I get to hear about their so called revolutionary business idea, how great their team is, and how much more money they need to take their business to the next level.

After doing this for a few years, you tend to get tired of hearing all the bullshit that comes from most entrepreneurs.

So for all of you entrepreneurs out there, here are the 7 harsh realities that you need to know if you want to be successful.

Harsh Reality #1: Starting a business is like a roller coaster

You probably have a vision of what your life will be like if you start a business. Well, you can take your vision and throw it away because it isn’t accurate.

There isn’t a ton of glamor in creating a company; instead it’s like a roller coaster. And it’s not like one of those kid roller coasters at Disney Land, it is more like one of those crazy ones at Six Flags.

Sometimes things move really slowly, while other times things move really fast. There will be moments in which you will really enjoy what you are doing and then there will be moments where you aren’t too pleased.

And to make things even worse, sometimes things will look really good, but just around the corner will be something that will make you shit in your pants. Sadly, you probably won’t know what to do other than to cry.

Harsh Reality #2: Owning a business isn’t easier than working at a 9 to 5 job.

If you start a business you get to be your own boss and set your own hours, right? Although that is what most entrepreneurs believe, it is very inaccurate.

Instead of having just one boss, you now have hundreds of bosses. Just think about all of your customers because essentially each one of them is your boss.

If you still aren’t a believer remember you have your own business because you are here to make money. And if you don’t do what each of your bosses (customers) want, your business will go bankrupt.

In addition to that, when you work at a 9 to 5 job all you have to do is work from 9 to 5. When you have your own business you usually end up working 10 to 14 hour days and in many cases 7 days a week.

Even after you start making money, things don’t always change. Although I am not rich, I have done well enough that I don’t have to worry about money. None-the-less, I am still working 60 to 80 hours a week.

Sadly, money didn’t change how little I work.

Harsh Reality #3: Consumers have to believe you are solving a problem

It doesn’t matter if you think you are solving a problem, all that matters it that your target customer thinks you are solving a problem.

As a business owner you get so wrapped up in your company that you fail to see what’s right in front of you.

For example, I met up with a great entrepreneur a few weeks ago that started up a real estate company. I love the entrepreneur to death and I think he will do well in the long run, but he talked to me about how his company was different than all of the other real estate sites out there.

As someone who just recently bought a home, I was actually using his site as well as Trulia, Redfin, and before I even met him. And although he had some valid points on how his site was different from his competitors, as an end user I couldn’t see much of a difference.

In the end, this led me to use other real estate websites because his company didn’t solve a problem for me.

Harsh Reality #4: You have to make money

If you are creating a business you have to make money! I don’t care if you don’t care about money; the fact of the matter is not only do you need it to keep on moving forward in the business world but you personally need to survive.

If you think you can create a company like YouTube, not worry about making money, and then sell it for over a billion dollars… well think again. Companies like that aren’t just a needle in a hay stack, they are a needle in a billion hay stacks.

Before you put in a lot of time and effort into a business idea, ask yourself how are you going to make money. If you don’t have a solid answer, don’t get into that business.

And if you are already into that non-revenue generating business, get out ASAP.

Harsh Reality #5: You have to give a lot to get a little

The world has changed and it is no longer easy to build a successful business. Unlike the old days, you can’t just pop up a website, point some ads at it, and build a big company.

In today’s world you have to give a lot. Whether it is free information or samples of your product, you have to do something to build trust from your customers. If they don’t trust you, they won’t spend money with you.

For example, one of the main reasons Zappos did well is that they gave a lot. Just take a look at their return policy; you can return your shoes within a year for no reason at all. Plus, they even pay for you to ship back the shoes that you supposedly didn’t wear (but we all know you did).

The sad reality of building trust with your customers is that it isn’t something that is easy to do or cheap. You could lose a lot of money before you gain people’s trust.

Harsh Reality #6: Coolness is inversely correlated to success

All right, I have no proof that coolness is inversely correlated to success, but in most cases this is true. The most successful companies out there aren’t cool or hip, they are actually dull and boring.

If you don’t believe me, just look at Twitter. Although it is the hottest company out there, they probably will never even make what Exxon Mobil makes in a day.

Or just look at Facebook. Unlike Twitter they are making money, but they can never be the size of Exxon Mobil. We need oil to survive… you don’t need Facebook to survive.

So the next time you are thinking about creating a cool and hip company like Twitter, think about creating a company like QuinStreet. You have probably never heard of QuinStreet, but they have been posting good earnings every year.

Harsh Reality #7: Time is worth more than money

The companies that tend to succeed over time aren’t the ones that create the perfect business out the gate. Instead they are the ones that get their company out in the public as soon as possible.

Once you get your company out there you can find out what people are saying, make modifications, and then get more feedback. By being in a constant stream of iteration, you’ll have a higher chance of success because you will be modifying your company to meet your customer’s demands.

If you take your time and release your company when you think it’s perfect, you’ll be in for a big surprise. You will never be able to please everyone and you will always run into things that you never thought about.

What are you going to do when your customers tell you that they don’t like your so-called perfect company? You just spent a year perfecting it and you wasted thousands of dollars. You would have been better off to throw something out there and get feedback ASAP.

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  1. But riding roller coasters are fun and working 9-5 is boring. Great points Neil, especially #5, I find too many people are afraid to give. Give with the right hand and make sure the left hand is collecting payments. :)

    • Thanks Mike! You are probably one of the best examples of someone who isn’t afraid to give stuff away for free.

      You give back to the Chiropractic industry a lot through your website.

  2. Here’s a corrollary to “You have to give a lot to get a little.” IF you are in a 9 to 5 job, but you have an ambition to start a company, begin your aggressive give-back program now. I don’t care what it is–help people to network, write a good blog, do philanthropic work, be nice to people, comment on someone else’s blog, retweet stuff, run for office in your small town. Whatever you can do to give back. You have more time to do it now than when you start your company.

    Build a rich bank account full of acts of generosity. Don’t do it for any near-term payback. But it will be the smartest thing you ever did to build a fertile path for your future business.

    (I know this sounds all puppy dogs and peppermint, but it is a hard cold reality that you will need help from people when you start your business. More than you can possibly imagine. And People won’t help you if you pop out of nowhere and ask for it. You need to be someone they trust and respect for your own give-backs.)

    • Initially, you do have to put in much more than what you’ll get out of it. It’s like a process… Eventually you’ll reach a point where you’re getting more than what you put into it. You need to start somewhere.

  3. Great article Neil, love points 4 and 5. I see too many people around me talking about their great idea, without thinking about how monetization. Even Jason Fried has talked about it a lot on Signal vs Noise and his speeches. Thanks for the insights!

  4. Harsh reality number five is so relevant to today’s society. It’s the reason why content is king and why it’s a great differentiator and required part of business right now. Just giving out a free eBook once isn’t enough. You have to consistently give for the rest of your business’s existence.

  5. To expand on #2. If you are working 9-5 in your job, then starting a business is’nt for you anyways. Most people I know who are successfull in their jobs are the ones working 10-12hr days and on an ‘always-on’ mode. These are the blokes who should quit their jobs if they have a better idea because if they put the same drive and energy into their venture, they’ve got a higher chance of success, than someone who puts in a routine 8hrs a day.

    • It even comes to a point where you don’t exactly have set work hours… your business calls and you have to answer. If you can’t focus on building it the right way, someone else will… if they haven’t already ;)

    • couldn’t agree more.

      actually, there’s a lot of people I know who work 9-5 and starts whining if they are asked to extend in some days. unfortunately, these are the very same people who want to start doing business. heck!

      - mike

  6. On #1, another analogy, one I like to use often is that working in a startup is like war. There are long periods of monotonous routine work which can be close to boredom, followed by short but very intense bursts of high activity.

  7. Interesting article, but overall quite negative… There are harsh realities in every aspect of life – this is no reason to shy away from pursuing a dream or reaching for a goal… Adversity can be extremely creative, when VIEWD constructively. If you love what you do, and since starting a business usually involves free choice, I’m assuming you do, then hard work need not be seen as a negative… but merely a necessary step to achievement.
    I do agree with not waiting for perfection when launching a new business, but rather to, launch – be sensitive to responses and then adapt and manipulate what you already have to mirror market demand.

    I would say don’t over think it… just do it and work it out as you go…

    • The problem is that the jolly happy view of this business will only take you so far. MOST PEOPLE NEED to just have a reality check. It takes creativity, hard work, and innovation to make it in our current times.

    • I would prefer the harsh reality scenario. All too often, new business ventures fail because the owners had too rosy an outlook on their business’ future.
      Not everyone who starts a business succeeds and not everyone who succeeds keeps at it. I think it’s better to be aware of what’s out there than to just expect things to work out because you’ve put yourself in the right frame of mind for it.
      Running a business can be very disheartening when the unexpected happens. It’s better to expect it and know the score.

      • Most people who start a business FAIL… it’s all because they have super high hopes, which drastically fall and crush their hopes and dreams. A few of those people can still get with it and then out of those… they become successful.

        • These are the people with guts, steely determination, focus, dedication, very hard working, unhip, uncool, and realistic; problem solvers and moneymakers who learn from their mistakes and successes as well as those of others.

          They prefer things in black and white ;)

  8. Great piece.

    Where were you when I quit my high paying radio gig?

  9. Great article Neil. Number 3: Consumers have to believe you are solving a problem – is so key. More specifically, your target market has to believe that what you’re offering can improve their lives in some fashion. Better yet, if you can convince those you’re trying to reach that you’re the ONLY one that can meet their need, you will succeed.

  10. Excellent Post, Neil!

    Harsh Reality #3: Consumers have to believe you are solving a problem, is my favorite. I have worked for a handful of Start-Up companies and while all “solved particular problems,” consumers didn’t necessarily have “the problem” which a few of my former employers’ technology solved. Very interesting read.


    • You need to be able to provide your audience with something they need. The best way to do that, like you stated, is to find out what their biggest challenge is. Give them what they want!

  11. It’s funny.. I have people that say.”your lucky you have a biz and can relax” since I dont have a 9-5. In reality I’m always working, social marketing is work, I can’t stop at 5 and go relax.. if I do, I lose out.

    The more successful you are the more work it takes to continue that success.

  12. #7 is always true, but I like #6 the best. I like it so much, I have to ask if you really think QuinStreet is uncool? Perhaps it’s “unsexy” to be QS over Twitter, but companies like QS are my idol . . . online, in the club, on the NYSE :) whatever. Cool as they come. Just generating leads all day.

    • You’re so right. Sure, companies like Facebook and Twitter are used worldwide by millions of people and seen as the ‘cool’ thing, but they’re most definitely not the cool thing to those so-called “big wigs” out there! These sites may look cool, but they certainly aren’t professional want. What the real consumer wants is information, pure and simple.

      • There are so many other companies who no one has probably heard of that are far more superior than some of the companies you’ve heard of.

      • The Internet is so big that is almost impossible to be informed about everything that is new. Many websites emerge day after day and some of them become famous while others fail to do so.

    • lol…yeah it maybe cool to you, but 90% of people have no clue ;)

  13. The roller coaster analogy is perfect. There’s nothing like the adrenaline rush of setting up a new company, similar to the adrenaline rush you get from going on a roller coaster. I know it’s not what you were getting at, you were talking more about the ups and downs, but this is what I felt like when starting up my new business.

    Your points are all very valid and helpful. I’m sick of being contacted by friends or people who have heard of me asking for consultation on setting up new businesses and they expect everything for nothing. You have to spend money to make money – something very few people understand now-a-days.

    Thanks again for your great post.

  14. Hey Neil – great post (as always). As the founder of my own boutique corporate law firm, here’s another “harsh reality” that I have personally realized: your quest must be the number one priority in your life. As my old tennis coach Harry Hopman used to tell me: “it all comes down to one word – desire.” How badly do you want it? How much are you willing to sacrifice. Indeed, I love the quote from Ratan Tata (chairman of Tata Group, India’s largest conglomerate) in yesterday’s Wall Street Journal: “I really believe that there is a great strength in American capitalism that cannot be destroyed. It exists in the ability of anybody to be successful if they have the tenacity to do so.” Tenacity – that’s the term. Cheers, Scott

  15. Great post, Neil. Just to build on #7, iterations not only help you make simple modifications, but could lead to major changes too, including changing your entire business itself. For example, Flickr was originally intended to being a multi-player online video game before the founders realized the site’s photo-sharing feature was growing exponentially. I believe Paypal too started off as something else (handheld security software, if memory serves me right). It just goes to show that you don’t need a perfect plan when starting out. Rather, get your idea out there as quickly as you can, talk to as many people as you can, see what sticks and then make prudent changes along the way. The best ideas will come once you’re out there.

  16. My favorite one is that you need to give alot to get a little, if you think you are going to invest time/money and get equal return(fast) your so wrong.

    Great post! :)

    • It’s like a chart…there is a point you’ll reach where you get what you put in and finally when you get more than what you put in… however it does take time and obviously getting little to nothing for what you put in.

  17. Hello, I really agree that it is too much work to take care of a family and having a full time job and at the same time starting your own business. All alone with no prior experience. but I can also say that if you aren´t in a real hurry with patience you can build things up. But do not quit your day job and take time with your family.

  18. Amit Prabhudesai :

    Great post, Neil!

    Esp. couldn’t agree more about point #3 — you might think you’re solving a problem or doing something cool, but solving a problem that people want solved is different!
    I would like to add another point: execution. you might have a great idea, but unless you execute it *extremely* well, people won’t pay you for the idea. Remembered what the owner of a start-up I was working with told me, “People don’t pay you to do a thing 99.999 % complete. They pay you to do it 100 % and do it bloody well!”

  19. I couldn’t agree more with most of these. But for the rest:

    #2-Maybe I’m lucky but I’ve never had it easier since I became self employed. What you folks need to be doing is setting up passive income, and systems for making money without your being there. When I tell people I’m self-employed they always assume I work insane hours. This is not so. Who wants to work 80 hours a week? Do you plan on doing that forever?

    #3- It’s not always about saving the world or solving some problem (see harsh reality #6), as I see on blogs so often. Sometimes, it’s just about selling some $.99 trinket impulse buy a million times. In such a low-dollar retail setting, does the customer even think about you, let alone struggle to figure if you are solving some issue? Don’t over-complicate things- offer value, and take their money. Leave psychology for the colleges.

    #5- Once again, passive income. It is possible to give a little and get a lot; the longer the time, the more you get back from an initial bit of effort.

    I suppose individual results vary.

  20. Anand Srinivasan :

    Yet another wonderful article Neil..I can especially relate with the first one..End of day one, I am so happy that things are moving so well, and the next day morning, I am all worried with no direction..

    Things sometimes are so confusing..

  21. Great article, thank you. In my world, the vast “great” business ideas are scrapped before they are ever executed. Very few ideas are perfect and your haystacks analogy was excellent. Scrappy entrepreneurs with a shoe string budget are forced to learn fast when they boldly attempt to execute plans. The market is the best teacher and you don’t know what you have until you engage it.

    I don’t find your article negative, but realistic.

    Without a precursor of sales revenue, no idea deserves to be spoken of as good, or even horrible – it’s just an untested theory and it deserves the level of enthusiasm that an untested theory should bring. I’ve been presented with hundreds of “home run” business ideas, executed many of my own plans, and succeeded with 3 (still testing 4) in 10 years of being an entrepreneur.

    • That’s awesome Charles… and being an entrepreneur, you obviously understand the concept of the numbers game. Yes, its not a negative response, it’s just putting a realistic view on what it’s really like and I’m glad you can concur.

  22. Yes it is important to get your business started as soon as possible, but more importantly is having a plan for success. Just stating a business without a clear plan will cost you more time than spending some extra time making a workable business plan.

    • Not having a plan is a plan to fail. If you don’t know what you’re going to do step by step, then you really don’t have any control of what will happen to your business. Also, like you said, you’ll end up wasting more money that way too.

  23. Really good article.It is just like a slap behind the neck to all people who think it is all bread and butter.

  24. think about it, you have to start from somewhere in order to be successful, don’t think you just sit back, relax and all the money will drop from sky :)

    • Very few people in this world were lucky enough to start at any point of a business other than the ground floor… So for most of us, we must start at the bottom and work ourselves up to the top.

  25. Really inspiring post Neil.. lot of valid arguments and tips.. another point which I feel deserves mention is that most entrepreneurs get so sentimental about their projects etc.. they are not very receptive to criticism. They just want to believe its the best.. and that is a big reason of failure

  26. Great points Neil, it is hard at first to start of a business but you need to stay persistent and motivated in order to have in succeed at the end of the day.

    • The beginning is always the most difficult part… it’s like when a airplane is taking off…the beginning is the hardest…but then once you reach a certain level… you can ease up the tension and just let it glide.

  27. Should you ever give up on a business and when do you need to?

    • There is always a point in ones business where it’s best to cut your losses… but it varies. There is no one way to tell if you should stop… it all depends on you desire and the realistic view of what you can expect.

    • If a business is not working for a long time maybe its time to let it go, but the owner of that business has to feel when is the right time to do it.

  28. #2 Really? That really sucks because I truly want to dump this 9-5 one day and wwork for myself. :(

  29. When your starting your business the last thing on your mind maybe determining conditions that indicate the business will no longer work.

    Whilst I am not a business owner myself, I’d would think that many entrepreneurs will be so immersed in their idea that they won’t know when to draw the line and accept their losses. Justifiably so, letting go of a business idea after putting in the time, effort and money would be emotionally draining.

    Maybe setting goals such as reaching certain revenue targets, customer numbers or other indicators of success when commencing a startup will help a reality check for a budding entrepreneur down the line.

    • You know Varun, it really depends on several different factors… to many to list. Start with you desire and your passion on what you’re doing and see if it’s something that still jazzes you up, even if you’re making zero from it. Get some outside and advice, feedback, or even coaching to determine if its something that works or not.

  30. So true on the post Neil. We obviously see it in the hyper-competitive financial services industry. The other issue here that I think is missing, is partners or key people at the business. We are seeing more interest these days in types of exec replacement and key-man insurance policies. I think loyalty has a lot to do with that.


  31. just wondering what do you want to achieve from this blog ? you are helping entrepreneurs , but whats in it for you ??? There are no ads or links to ACS …

  32. I have to jump in and say I agree with Danny on this one.

    I left my career 5 years ago to start a small business. (Very small biz just me and a couple of people I would outsource work to, and my clients) It was all fun, profitable, and good at first but after 18 months or so, there were so many headaches….I actually decided life would be simpler with a regular job, and so I went back to a 9-5 job! I worked the 9-5 for two years (and hated every nearly every day of it) before leaving the job again to start a new small business. This time it went better. I had learned from the first go-round and things went better with the second run around. I think at some point for the starting entrepreneur, you often just realize that you’ve made too many mistakes and you just need to close down and start again with a blank slate (sort of.)

    But about a year ago I began working on creating a system rather than a traditional business. A system that practically runs itself, delivers a product directly to the consumer, outsources nearly all the work hours, and spouts out passive income. THIS is definitely the way to live and earn (in my opinion!) Currently I am able to reduce my hours and time at the traditional business in direct proportion to the growth of the passive income business.

    But just like starting a more traditional business…I’ve had to stop, drop, and start over with the passive income business model too!

    • Wow, that’s fantastic!! It looks like you’ve been able to do something most people aren’t able to. Congratulations on your success! Now, you should focus on building, growing, and expanding your business to the next level.

    • Passive Income. I like the sound of that. I seem to be working hard trying to get my business going. I think I need to discover my direction and stay focused. Lots of ideas but not enough time.

  33. the post does not seem to be showing the reality of entrepreneur world…. u are speaking too soft for all those budding entreprenuers..

    • My intention was to show you that being an entrepreneur isn’t as easy as people make it out to be… there is a lot of hard work and failure involved in the process to even mediocre success.

  34. Great points… I might argue that coolness is inversely correlated to making money, as opposed to success. A lot depends on your definition of success :) And yes, time is worth WAY more than money, it is totally irreplaceable.

    • Time is obviously something you can’t get back… unlike money which you can make over and over again. The definition of success to you maybe different, but the definition of success in general is usually the same for most people.

  35. Great hints! Thanks for the nice work.
    I loved this step” Harsh Reality #7: Time is worth more than money” It is most necessary for a company owner to find out what customer saying and try to modify according to customers. It is also important to get more feedback to success.

    • Times change… trends fade… so it’s very important for you to figure out what will actually work and what won’t by doing the research and the testing. That way, you can alter what you’re doing to directly fit in with what your clients really need.

  36. Hi guys

    For me, it is better to expect the worse because you can make adjustments to avoid such things.

    I like #7 which is “time is worth more than money”, as far as I’m concern, you don’t really need to do things with your own, you can hire and outsource right? That way you can use your spare time to earn with other things but make sure that the one you hire is productive for you not to waste money.

    Kind Regards


    • Very true, but the problem with outsourcing is that if you don’t specify exactly what you’re looking for, you might end up with something you don’t. Also, you may waste money taking the time to figure out what you really want…

  37. Neil,

    Interesting post! It sounds a lot like you are speaking to product companies, and I own a service company, but enjoyed your tips nonetheless. One advantage to a services company is that we can change our course a bit easier than product companies, so I would add one more Harsh Reality to your list: You Don’t Know Everything. In other words, remember that there are new things to learn every day and be willing to change course if necessary…. relative to the feedback you mention in #7.

    It often surprises me how many people think that being an entrepreneur is easier than a 9 to 5 job. It may be more rewarding (sometimes) but it certainly isn’t easier. Which reminds of another Harsh Reality – gray hair and wrinkles often come with the territory … usually as a result of Harsh Realities # 1, 2, 4 and 5!

    Christine Perkett

    • lol… that makes sense, but all this applies to both service and product companies. It’s true, “You don’t know everything” and you shouldn’t ever know everything… because if you’re not growing… you’re dying. Become a learning junkie and acquire as much knowledge so long as you take as much action.

  38. I treat my website as a business. Growing bigger and bigger every month.

    The bigger I get the more jobs I have to take on. Yes I can outsource them away from myself. But then I have the headache of relying on them to get the job done.

    Bigger and bigger i get the more you have to start trusting people. But still I am ready for this and will do this!

    I work on my website over 30 hours a week. I already have a day job.

    Brian P

    • That’s fantastic Brian… I hope your website receives a ton of success. The challnege with ourstoucing though is just finding the right person without having to explain every little detail over and over again. Interesting site by the way.

  39. I agree with a lot of what you have written in this post! Having your own business certainly is a lot of hard work. Right now I am working pretty much every free minute I have in the day on my new business. I do allow myself 1 or 2 hours at the end of the day to do some browsing etc. :)
    Websites can be a lot of work if you want to make them successful. One thing I think that you may have missed on your list is that you have got to be different. I have seen so many people say “Oh that site is earning a lot of money so I should try and do what they are doing” or along those lines! The websites which make the most are the ones that people haven’t really touched on and made effective yet. This is becoming increasingly difficult though as there are more and more webmasters everyday as it is becoming easier by the minute.
    If there was one thing I would say is, if you think you have a great idea, DO IT! Don’t wait and let someone else fill in that gap that you think you may have found. Hey so the majority won’t be successful but its that 1 in hundred that really counts! (love the blog by the way Neil!)

    • Thanks bud… building any website takes super intense hard work and endless hours of dedication… trust me on that. Good for you on knowing exactly what you want and going after it. Good luck!

  40. Here is my healthy retort, turning around and bending over for all to see what I think.

    Harsh reality #1: Starting a business is like a roller coaster
    “I never been to six flags….did any one die there yet?”

    Harsh reality #2: Owning a business isn’t easier than working at a 9 to 5 job.
    “Easy?….if I were a “B” player I would care all about the clock. However, I am an “A” player and I love my business! If I did not I would not be doing it.”

    Harsh reality #3: Consumers have to believe you are solving a problem
    “Ok…I agree with this one…but it is ok to have competitors.”

    Harsh reality #4:You have to make money
    “Making money is nice but there is something to be said about making the same amount of money but living a richer life”

    Harsh reality #5: You have to give a lot to get a little
    “No….I think the Chinese are doing it the other way.”

    Harsh reality #6: Coolness is inversely correlated to success
    “Entertainment is always cool…The movie industry is doing really well right now”

    Harsh reality #7: Time is worth more than money
    ” Yes!…..let’s send the next satellite up into space before we bolt the communication module into place!”

    Honestly having your own business is a life choice…..choice to live the adventure….When you are old you can tell your gradkids all of the fun you had. :)

    Chris Pinter, EET BTech
    Quino Solutions Inc.

    Quino is number 20 in the BIV “Top 100 fastests growing companies in BC(2009)”

    • Congratulations on your company’s success Chris… having your own business IS definitely a life choice… there are going to be ups and downs and lefts and rights…. what people forget though is that it’s not necessarily about the destination… it’s about the journey that takes you there.

  41. Neil:

    Great points, they all ring true. One other harsh reality that you may want to add, “Have Access to Capital.” The last year has demonstrated that once traditional financing methods can dry up overnight. Further, existing lines of credit can be reduced, even if you’ve paid as agreed. Believe me, scared bankers will find some way to reduce you credit in all of the fine print. Secure twice as much as you think you’ll need, because, you’ll need it.

    • Well if you have the ability to “sell” or “pitch” your idea to investors, than your set as far as capital goes… but then that’s also another story. Of course you’ll need your own money, but you’ll also need other people’s as well.

  42. It is a fallacy that you have to work 14 hour days/7 days a week. Entrepreneurs can work whatever hours they want, but they have to structure their business to support it. If you are working 14/7 then you 1) arent being efficient 2) arent being product 3) aren’t delegating enough to your employees

    If you can’t delegate to your employees then you have the wrong employees.

    You can work 9-1 if you want, you just need to hire the right people.

    • It usually doesn’t work that seamlessly… as an entrepreneur, especially a brand new one, money is tight, you probably have zero or very few employees, and there is simply just too much work to be done.

  43. Great good 7 tips. I am totally agree all of that. The most important to me is the # 1, #2, #3, #4, #7. I rather build my own business than working for a job. it is because build my own business seems like a lifestyle challenge for me. I love the challenge, i will try to solve them with my method. Always failure until the day success.

  44. Another “7 things…” list
    - fun stuff and well delivered-

    I laughed a little at #5 ” The world has changed and it is no longer easy to build a successful business. Unlike the old days, you can’t just pop up a website, point some ads at it, and build a big company.”

    Many biz owners who began their careers prior to the advent of the internet, would chuckle a bit at the “old days” reference and the glib commentary about it being no longer easy to build a successful business. Many family businesses take 2 or more generations of constant building before realizing national or global success. The instant nature of the internet skews our sense of history and time but serious business builders have always recognized that it is never “easy” to build a successful business.

    • The difference between then and now is that now anyone anywhere can almost instantly be a sensation the web. This doesn’t mean that the site will make the type of money they made in the past… but the potential is still there.

  45. Brilliant article. I’ve not long ago started my venture and this has served as a timely reminder as to what I should really be aware of and focusing on! It now stays permanently open as a tab in my browser to remind me of the “harsh realities”, but also to keep me focused.

    Thanks :-)

  46. Neil, I am sure when you wrote this post you were not writing it for idiots. Any bloke out there thinking they can duplicate a YouTube, a Facebook, or a Twitter model is a fool in my book. Duplicating their model = failure.

    However that does not mean one cannot build a web property that provides better service and functionality as quite simply it can be done, along with a way to make revenue besides silly ads.

    However if you are surrounded by inferior minds and refuse to leave that environment for sentimental reasons then ones biz will suffer until one is able to overcome the obstacles or lower IQs.

    Thus making money is crucial for life/survival. But if a college grad has no job, no money, but has time on his hands first they should find a job, any job, then work on their ideas in secret , release it, and see if it will work.

    For those who cannot find work no matter how hard they try, and have never worked most of their adult life of then suicide may be an option. sad to say, but such people do exist in a world of evil forces aligned against them. like a parallel universe.

    • Sometimes… people just hope to ride the coat tales of someone else’s success or revolution… and you know what… it sometimes works. However.. for probably 99% of the time…it’s just a major failure.

  47. Really good article.It is just like a slap behind the neck to all people who think it is all bread and butter.

  48. I’d much rather see honesty like this rather than so called “experts” hawking books about how easy it is to “own your own business.” The real truth: it’s a ridiculous amount of work. I firmly believe that the average joe has no idea of what goes into creating and managing even a slightly successful business.

    Posts like this should be required reading for budding entrepreneurs.

    • Thanks Brad… the average Joe really doesn’t have any clue… hence why the failure rate is so high. People don’t necessarily have to learn it in school, but they should still do the research.

  49. If you start an online business, then you should start work at 5am and end up at mid night. lol. I mean you need to spend lots of time online to see how you can improve etc.

    • You should definitely spend the time working hard, but it also depends on your schedule. If you have a day job, then spend your time after work hours building your business. Either way, be prepared to spend hours every single day.

  50. Hey Neil,

    The fact is most people don’t understand these points.

    I have relatives who thought business was going to be super easy and just a walk in the park.

    Then they take a financial hit or two, and they call it a failure. Sadly most people will never understand these 7 realities.

    Jay Jalodomisa

  51. Yet, another great article Neil! Once again, I even read all the comments :)! I’m planning on printing all of your articles & turning them into my personal ‘Ultimate guide to success’ manual.
    #7 – As my dad always says, “When it comes to your money & well being, you can change your mind at any time”.

    #2, I currently work a 9-6 position at a family Jewelry business. Though, it’s an easy job, I strive & desire something so much more. I WANT to put in 14 hour work days, because I know in my heart it will only better me. While, in my current work palce there’s really no room for me to grow. I’m so excited for the future, and ready to accept the challenges life has in store for me.
    Happy New Year To All! All my best for lots of health & happiness!

  52. *Family owned business. I’m not part of the family :P

  53. Hey Neil, good article but I still think that after following all your advice to the word, that there is still a factor of luck involved. You are an example of one who succeded but there are many many more who also fail, they all worked hard but the luck was in your favor.

    • Yes luck always has something to do with it, but mind you, that the more you put yourself out there, the better it is for you and the more chances you’ll have.

  54. in these days time is most valuable thing. everyone is in a rush.

  55. I must say it’s quite true. Creating a business isn’t an easy thing. By the way, in addition to all points describe in this post, i think you could add a point eight : “try to have support from a physical network of people” (experienced people, various competencies, friends or working “old school”, no sharks). It could be a precious help when time is difficult.

  56. So true (the last point) as I’m a perfectionist. I have some websites I’ve been working on since 2001. 2001!!!!!
    Well, at least i’ve begun setting short term goals and launching them… your tips are great! they’re light on fluff and always very informative. Thanks,

  57. Think career. Think of yourself as entering a new career, as a ‘business owner’ or ‘entrepreneur’. Entrepreneurship has its own special skills, which all new entrepreneurs have to learn. Think decisions. Entrepreneurship is about making decisions. The more decisions you make, and the more often you make them, the more your career will prosper. Think advisors. As everybody knows, a successful business can make you your fortune – and for that reason, all new businesses attract very smart competitors at the first hint of success. (Please note: there are only two types of business that do NOT need advisors: businesses with no hope for profit, or businesses in suicidal mode. Everyone else needs advisors.)Think planning. There are millions, probably billions of different types of businesses out there, and your job as an entrepreneur is to choose just one (or, at least, one at a time). Think profit. Your aim as an entrepreneur is to make sure that you don’t accidentally start a hobby. Hobbies do not make money; they simply cost money, and if you start a hobby, sooner or later you will get tired of working for nothing. To have a successful life-long career as an entrepreneur, you must have businesses that survive.

    • Advisers are important mainly because because they’re able to see the things that you aren’t. A collaboration of people who have knowledge in areas that you don’t will collectively help you and the company grow much faster than without.

  58. free forex demo account :

    I wonder how you can find time to write these useful article. You are supposed to be very busy.

  59. You really realize as days go on that the projects get harder and harder and it costs more money to get completed even if the task does not seem so hard. But since issues might be small but be a quick fix you need to speed up production will take more resources and cost you money.

    But I think in the end if you are making some profit from nothing it is a big success if this is a side business!

  60. Nice article, I’m now running my own business website in Malaysia, your harsh realities points will serve as a guiding principle. thanks!

  61. Owning a business may not be easier than a typical job, but is sure is more rewarding.

  62. If you start an online business, then you should start work at 5am and end up at mid night. lol. I mean you need to spend lots of time online to see how you can improve etc…

    Thanks for information..

  63. Adwords Secrets :

    Your own business is a bit like owning a dog…

    A job is like someone else dog, it barks a lot, make a mess, jump all over you and leaves hair every where.

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  64. sell textbooks :

    Great post. i love how there is no fluff in there. People seem to think that working from home and things related to starting an online business is all fun and games. It is hard, you have work long hours and you rarely get a break.

  65. Thanks for the honesty. I think you could add seven more points to this list but I must say that I would not change being in business for the world!

  66. Thanks , I have just been looking for info about this subject for a while and yours is the greatest I’ve came upon till now. But, what about the conclusion? Are you sure in regards to the source?|What i don’t realize is in truth how you are now not actually a lot more neatly-liked than you may be right now. You’re very intelligent.

  67. Interesting article, but overall quite negative… There are harsh realities in every aspect of life – this is no reason to shy away from pursuing a dream or reaching for a goal

  68. Some harsh realities! But all very true, especially the one about needing to make money. No money equals not being able to pay bills. You have to make money!

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