UCR's Entrepreneurial Event: Are You Ready to be an Entrepreneur?
The Palm Desert Graduate Center of UCR hosted an event today for budding entrepreneurs, Angel investors, and professionals that advise both groups. The event drew a decent sized audience of professionals from around the desert.
One theme of today's event was "Why This Might be a Good Time to be an Entrepreneur." A Keynote Speaker, a venture capitalist mentioned that companies in the "CleanTech" industry are performing quite well, and seeing increasing revenues, at a time when many companies are struggling. Some of these companies help other companies save money through products that in one way or another reduce the amount of energy used, hence creating both an economic and environmental benefit.
As someone who previously performed Venture Capital research, I thought a comment made by one of the panelists was important for budding entrepreneurs to keep venture capital financing in perspective--namely that getting "VC" funding is very rare (less than 1% will get this type of funding according to a small business consultant at the event).
Entrepreneurs must find ways to have enough capital to get their idea off the ground. After all the number one reason businesses fail is under-capitalization.
A recent article in the Wall Street Journal was mentioned and is a must-read for anyone thinking about becoming an entrepreneur, because it takes an honest look at what it really means to be an entrepreneur, and asks someone considering that route 10 probing questions.
I think besides the extreme financial risk one takes when starting a business, two other questions are very important for the would-be entrepreneur to think about--1. "Are you willing to sacrifice your lifestyle for potentially many years?...If you're used to steady paychecks, four weeks' paid vacation and employer-sponsored health benefits, you might be in for an unpleasant surprise."
The second question that a want-to-be-entrepreneur may have on their mind: "Is your significant other on board?"
Of course another question could be whether they are ready to deal with all the professionals they must interact with when starting a business: lawyers (such as for incorporating and other legal agreements), CPA's for tax strategies, business consultants, bankers, etc.)
Anyone considering whether the entrepreneurial path is right for them should read the Wall Street Journal article "So You Want to be An Entrepreneur" twice.
