Your Very own Organization – A Scenario Analyze on Its Hazards and Rewards


Entrepreneurial ventures are a crucial portion of the economy. For the individual entrepreneur the probable exists to satisfy dreams and develop into fiscally independent. In excess of time we have viewed entrepreneurial organizations develop into powerhouses, but also evidently effective business enterprise that went down the drain. An exciting observation is that business owners inside thriving enterprises are often unsatisfied and even frustrated. This case study highlights the various risks and rewards that some of these entrepreneurs expertise (names are fictional).

When anything goes incorrect

Eric was in his late forties when an entrepreneurial opportunity offered alone. He was an accountant by occupation and in a senior place at a medium-sized organization. A new franchise in the automotive sector was supplied to him in an additional town. The opportunity was also excellent to dismiss. Eric resigned, marketed his household and took the dollars to start out the business.

The franchise did not flip out to be what was promised. The franchisor was not incredibly straightforward and Eric was not an entrepreneur at heart. He was passionate about automobiles, but not about the much more specialized factors thereof. In the end the subsequent potential threats became reality and it had critical effects:

  • Social danger. When Eric and his wife left city they left their supporting framework and circle of close friends driving. He labored very long several hours to develop the organization. The regular and nice social weekend get-togethers were a little something of the past. Their teenage daughter also experienced major challenges that they observed complicated to cope with.
  • Economic risk. Sooner or later the enterprise collapsed and Eric was declared bankrupt. At this stage he was in his early fifties.
  • Occupation risk. Eric resigned from a superior occupation with a good pension fund. When all the things turned sour he tried to go back again to his aged firm. There ended up no vacancies. He approved a lower paid out career as an operational manager at a little entrepreneurial issue.
  • Psychological chance. Ultimately also several things went wrong with Eric. He acquired divorced, is extremely bitter currently and frequently remarks that he requires to work till the working day that he dies.

Is it really worth it?

Jack was in his mid thirties when he and his associates experienced the chance to do a administration invest in-out of the manufacturing enterprise that they worked for. In excess of the past seven decades they turned the firm about from creating a decline to a enterprise that is carrying out extremely effectively. Outsiders would say that this is the suitable scenario to be in. Jack is experiencing the following reward:

  • Financial benefits. Jack grew to become a greenback millionaire. He generally lived inside his signifies and he and his loved ones can quickly sustain a fantastic residing with no him needing to work an additional working day in his everyday living.

Regrettably Jack also sees himself as getting trapped in a capture-22 condition. He feels that the price he pays for the fiscal benefits is way too high. He generally expresses the adhering to adverse impacts on his life:

  • Social dangers. Jack had put in so significantly time out of the place that he grew apart from his pals and relatives. He feels he was not there for his father when he handed away on one particular of these journeys. He also feels that his children’s is escalating up and he is not there to practical experience it.
  • Psychological hazards. Jack finds it complicated to stability the perform problem and his personal life. At this stage he has a significant challenge with melancholy. Luckily his colleagues help him exceptionally nicely and they have formulated a plan for all of them to exit the business enterprise in the in close proximity to foreseeable future.

The fruits of success

Marc is a serial entrepreneur who commenced his to start with organization in his early twenties two a long time back. He is quite formidable, produced many errors and went bankrupt 2 times. 6 yrs in the past he commenced a enterprise in a market region of house progress. He has an complete enthusiasm for this line of company and in a short period of time turned particularly successful. He extensively enjoys his success and believes that all the hazard-having and really hard do the job was worthwhile. He experiences his benefits as follows:

  • Economical benefits. Marc is well worth various million bucks and he made use of more than enough of this income to give him a passive cash flow that affords him and his spouse and children a lifestyle of luxury.
  • Social benefits. Marc was constantly a very social person and managed to continue to keep his social lifestyle intact. Right now he is making the most of considerably of his social pursuits with buddies on abroad visits and at his holiday getaway farm and seashore property.
  • Independence rewards. Marc often loved being his own boss. He frequently mentioned that he would relatively sleep in a park than function for any individual else. In the close this frame of mind and resolve compensated off.
  • Progress benefits. On a particular degree Marc utilised the prospect to grow as a man or woman. He figured out to fly, did a large amount of self-analyze to improve himself and men and women regard him in all walks of daily life.
  • Contribution benefits. The final reward is the potential to give. Marc is offering a big proportion of his time and dollars to charity.


To have your possess company can truly be the greatest detail that you ever do (for yourselves and some others). It is, on the other hand, pretty critical to objectively search at it and to make guaranteed that it matches your character and chance profile. Entrepreneurship is not for every person. The probable rewards must be balanced against the potential challenges.

Copyright© 2008 – Wim Venter

Arlina Josse

Next Post

Are Small business Designs a Squander of Time?

Mon Dec 18 , 2023
I not long ago attended a countrywide entrepreneurship convention along with a amount of other college instructors and very well-recognised entrepreneurs. I observed it interesting that two concurrent periods made available conflicting details of check out on small business options. A person session highlighted a panel of profitable business owners […]
Are Small business Designs a Squander of Time?

You May Like