

Starting a business isn't as crazy and risky as they say - swombat
http://blog.asmartbear.com/starting-a-business-isnt-as-crazy-and-risky-as-they-say.html

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swombat
Funny story about relative job security...

When I was still in the early stages of my first start-up, in autumn 2006, and
working full-time at my consulting job, I was also interviewing with various
banks. Through this excellent recruitment agent, I got a series of interviews
at Lehman Brothers which ultimately culminated in them basically creating a
job for me in their Front Office product management team and offering it to
me.

This was a very good banking job. Front-office based, plenty of exposure to
all parts of the bank, creative, intense, and well paid. I hesitated, because
on the one hand I had committed into the business I was starting (to the tune
of several thousand pounds, and, more importantly, to a close friend...), and
on the other hand this was an excellent career opportunity from the "corporate
career" point of view.

I remember discussing this with my girlfriend at the time. Being very
pragmatic, she resolved the question: "Most people," she said, "hope their
whole life that they'll be able to start a business. You have the opportunity
to do it now, to realise something that for most people remains just a dream.
You may never get that opportunity again... but the Lehman job will still be
there in a year or two if you decide that start-ups are not for you."

Well, she was wrong about the Lehman job. I'm going to have to accept that I
will never get a job there now.

~~~
rgrieselhuber
I think the real lesson here is that you had a very smart (and rare)
girlfriend.

~~~
swombat
Yes. :-/

Well, I don't think that's much of a lesson to people other than me.

~~~
rgrieselhuber
I don't know about that. I know I've given up on relationships in the past
based on superficial reasons only to realize how important certain factors
like the one above mattered.

~~~
swombat
Well, all I can say to that is I wasn't the one who gave up on the
relationship.

~~~
aaronblohowiak
_Hug_ <http://www.reddit.com/r/relationship_advice/>

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kleevr
Growing up my family saw some rough times. We were living in a small city when
the local economy collapsed, and my Dad was out of a job. So, he took the last
bit of money he had, bought a trailer, put a hitch on the car, and started a
small landscaping company.

Less than six months later, we moved from the smallest house my family had
ever lived in, and into the largest house we ever lived in; in a down economy
no less.

I don't know that my father ought to be considered a "serial entrepreneur" as
he was never trying to get rich -- only to provide for us, but he did similar
things on several occasions whenever push came to shove. More importantly no
matter the job climate, he always either found or created enough work for
himself to support the rest of us.

The lesson I take from this is: when your job sucks or even outright ceases to
exist, if the job market is bone dry and the economy is in decline, it might
really be the best time to create your own business. (And,.. you'll never know
unless you try.)

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rgrieselhuber
Having seen enough smart engineers in this industry who were downsized or
overlooked for promotions for committing the unforgivable crime of turning 40,
I became convinced that it is WAY more risky to pursue a career made up
entirely of working for someone else.

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shimon
I think there are two main reasons we hear these depressing statistics:

1\. It validates most people's default decision to pursue a "normal" career
path.

2\. It increases the psychological barrier to entry in starting a business, so
that people don't often attempt it if they're not highly determined.

Reason #1 is a strategy for coping with laziness or fear.

Reason #2 may be a good or bad thing. On one hand, the people most likely to
succeed are those who have a high risk tolerance and are determined to make it
despite the odds. On the other hand, anything we can do to further lower the
stigma associated with business failure and encourage more people to start
businesses is probably good for society.

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dschobel
_More than two-thirds of businesses are started at home; only 21% of all
businesses employ someone other than the owner._

I'm wondering how many of these are ebay or amazon.com storefront type
"businesses".

More and more I'm getting the feeling that software startups are a rare enough
breed that it simply isn't instructive to look at nation-wide statistics.

~~~
Periodic
I agree. He's looking at a lot of businesses that aren't in the software/IT
industries. For example, his statistics include plumbers, landscapers,
artists, etc. If there's anything I've learned from the Internet it's that the
Internet isn't quite like anything else out there.

I'd be interested to see what the statistics are for only tech-related
businesses and consulting vs. producing.

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pbhjpbhj
_After all, aren't side-projects more likely to fail than projects you put all
your energy and time and heart and soul into?_

IMO Side-projects which don't have to support you financially are more likely
to succeed because you get to define succeed for yourself - "I sold a copy,
yay success".

Whilst a full-time occupation has to feed you and pay for everything else you
need to live, and possibly your family too, that means there's an automatic in
built requirement to make money. If you fail to make enough money day-to-day
to survive then you fail, period.

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edw519
Glad to see someone challenge "95% of all businesses fail" myth with a little
data.

I've always hated that "statistic". I'd rather look at it this way...

99.9999% of all sperm fail to reach their destination. Yours won. Keep
winning.

~~~
mseebach
I think that statement is tainted by survivor bias.

~~~
bd
See also anthropic principle:

 _"The conditional probability of finding yourself in a universe compatible
with your existence is always 1."_

<http://en.wikipedia.org/wiki/Anthropic_principle>

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fnid
The link in this article to "95% of businesses fail" points to an article
titled, "95% of _online_ businesses fail" and he disputes it with statistics
for ALL businesses.

Be honest. If you start your article with a lie, why should I believe the rest
of it?

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oscardelben
who said that failing is bad? Failure it's integrant part of success,
otherwise who could you learn to walk or drive?

~~~
ctb9
I'll say it. Failing is bad. The fact that the main benefit of failure is that
it can help you avoid future failure pretty much proves the point.

(I guess there is a secondary benefit in knowing you were at least shooting
for the stars, but if you take solace in that fact and quit trying before you
succeed, that sucks.)

No Edison quotes please.

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vgurgov
you would be lucky pick for any smart employer even if your own business
failed. people with creativity and experience of building something new and
Taking Responsibility are always valued on 100k+ jobs

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kp212
Inspiration, thank you.

