This article is about entrepreneurship, not the usual investment topic.
So you can skip this article if you are not into entrepreneurship 🙂
A friend of mine quit his job a while ago and mustered his courage to pursue entrepreneurship.
It wasn’t an easy decision to make. There are a lot of sacrifices that most people are not be willing to go through. It is easier to confine yourself in the comfort of employment than to confront the uncertainties of entrepreneurship.
Here's our mistakes. Don't do the same.
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
He is married and a child is coming. Imagine the financial stress he has to contest with before starting his business.
Time to time, he would question his choice to pursue his business. He would doubt the viability of his business. He would confide in me about his struggle.
I believe his struggle is not unique. All entrepreneurs experience these ‘down’ moments, and yours truly too. I wanted to share my thoughts so that entrepreneurs, like you, know that you are not alone.
I felt I had to straighten his thinking. Before you get the wrong perception, I am far from a successful entrepreneur. Having to walk through entrepreneurship for the past three years, negative thoughts does not serve its purpose in an already competitive environment.
An Entrepreneur Needs to Be Overconfident
BigFatPurse always cautions investors about their irrationality.
Overconfidence results in overpriced investments that proves to be costly over time.
Overconfidence is a poison to investments but a blessing to entrepreneurship.
Statistically, most businesses fail. The odds are always not in your favour.
You must be overly confident to believe you would emerge from your competitors and cement a marketplace for your service or product.
Hence, the last thing an entrepreneur needs, is to lose his confidence.
Overconfident Is NOT About Being Unreceptive
I want to clarify that being overconfident is not about letting feedback fall on deaf ears.
As an entrepreneur, you should believe in your chances, and at the same time have the receptivity to discern and accept relevant feedback from the marketplace.
Let’s face it, there are very few visionaries who could imagine a product that consumers do not know they want. Henry Ford once said,
“If I had asked people what they wanted, they would have said faster horses.”
He visualised a mechanised car that no one has seen before.
A modern visionary was Steve Jobs, who could create products that were not in existence.
But for many of us, it makes more sense to listen to consumers’ responses, and adjust accordingly. We are not so smart to get everything right at first.
Entrepreneurship embodies overconfidence.
Overconfidence is irrational.
Entrepreneurs need to be irrational.
It is this irrationality that empowers you with the motivation to fight off the odds that are stacked against you.