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Dream Big, but start Small. You can start a business without taking too many risks.
I received an email from Mr. Bobit Ebarle of bizstartblueprint.com about most dangerous myth about business. I would like to share it with you because it will you a lot especially if you are an aspiring or a newbie entrepreneur. Take Calculated Risks!
Have you ever watched the movie, “The Social Network"? Its the dramatized story of how Facebook started. The hero, Mark Zuckerberg (who was an aspiring entrepreneur had the odds stacked against him.) And there was a point in the story where he was being sued for millions of dollars. He was damaging his relationships, and he’s running out of money.
However, he believes that with Facebook, he had this one shot at building an empire. So, ano ginawa niya? He went ALL IN. He risked EVERYTHING, including the possibility of being sued for all his money, and exerts a massive amount of effort on this one business idea.
And it pays off!
He wins against the odds and enjoys a life of financial freedom and blessings.
And that's the happy ending!
Galing, noh? But what lessons could this movie (and all other entrepreneurship movies) have imparted in us?
1. Take the risk.
2. Fortune favors the brave.
3. And the ultimate lesson: You have to go ALL IN when starting a business.
All this sounds great and inspirational when we’re watching movies.
May isa nga lang problema...
Movies aren’t real (yes, even The Social Network, which was highly dramatized and borderline fictional). What happens in movies typically isn’t what happens in real life. Because in real life, for every successful Mark Zuckerberg, there are 1,000+ failed entrepreneurs.
Here’s something that happened in real life (though I wish it happened in a movie instead):
Several years ago, I started a coco sugar exporting business. Believing that I had to go ALL IN when starting a business, my company spent P11 million leasing and renovating a huge warehouse, hiring staff for 2 offices, buying tons and tons of product, and flying from Manila to Gen San and back twice a month.
Just like what the hero did in the movies, I took the risk and went all in! Unfortunately, I didn’t end up following the movie script because I failed in that business in just 2 years. No more P11 million, no financial freedom, no happy ending.
Ang sakit diba? This ALL IN experience almost ruined me for good. And I would NEVER want something like this to happen to you as you start your own business in the future. So trust me when I say that the most common and the most dangerous misconception about business is this...
You have to go ALL in when starting a business.
Hindi ito totoo!
In fact, I only succeeded in business when I did NOT go all in. I succeeded when I was more careful, started small, and did not take so many risks. And it’s the same with other established entrepreneurs, too! They did NOT go all in when starting a business.
Henry Sy started SM only as a small shoe store in Quiapo. Manny Villar started a sand and gravel delivery business before growing it into a real estate empire. Tony Tan Caktiong started with selling ice cream before growing it to become Jollibee.
Do these sound like entrepreneurs who went “all in” when they started their businesses? Definitely Not!
This is probably the first time you’ll hear this from anyone teaching how to start a business, but here’s my lesson for this week...
Do NOT take so many risks when starting a business.
Do NOT spend your life savings on one business idea.
Do NOT go all in. That’s too risky!
Because ultimately, you CAN start a business without taking too many risks.
And the best way for you to start a business without taking too many risks is to start small. Yes, dream big, but start small. (Just like Sy, Villar, and Tan Caktiong)
So if your small business does not go well, you only lose small. Besides, you can always grow bigger anyway.
It’s much easier to grow a small business than it is to recover and pay a huge amount of debt on a big business that failed.
So dream big, but start small.
Here are a few examples:
Looking to start a restaurant? Start small and test demand by selling to your officemates and neighbors first. Or at night markets.
Looking to put up a retail fashion store in a mall? Start small and test demand by selling via online stores on Facebook or Instagram first.
Pag magnenegosyo, do NOT risk it all.
If you feel like you’re taking too many risks when starting your business, chances are, you’re right.
In fact, if you could entirely AVOID risks? Go for it!
Does this lesson make sense to you?
Wishing you entrepreneurial success,
Mr. Bobit Ebarle - bizstartblueprint.com
Business Startup Blueprint is the proven, step-by-step Blueprint for starting your own low-risk, high-reward business. Visit Business Startup Blueprint to get FREE business resources, tips, and training videos!
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ABOUT THE BLOGGER
Hi, Ralph Gregore Masalihit here!
A Personal Finance Advocate. An I.T. by Profession. An Investor. A Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.