Entrepreneurship is not for the faint of heart. That being said, this path can be immensely rewarding if you play your cards right and foster a great deal of patience.
Here’s the advice I’d give my younger self about entrepreneurship: Establish some form of stability, diversify your income streams, educate yourself about personal finance, and foster intrinsic motivation.
1. Remember that it will likely take 3-5 years for your business to reach profitability
Bright-eyed and bushy-tailed, I remember thinking that I should have a thriving writing business in six months or less. Dreams do come true, but, unfortunately, it generally takes much longer than that to earn a sustainable income.
I made the mistake of quitting my 9-5 way too soon. Honestly, I did it because I was burnt out. I was working nights, and I do think it was the best decision for my health. But it certainly took a toll on my finances.
I would highly recommend setting yourself up with some form of stability, whether that means a hefty savings account, a consistent stream of income from your investments, or simply continuing to live with your parents as you increase your income.
2. Have multiple streams of income
I cannot stress this enough: You need to have multiple streams of income as an entrepreneur. You might have a slow month in December if you are ghostwriting for clients who are suddenly preoccupied with their family and friends. Things like this happen, so it’s best to be prepared.
If you’re a content creator, write for multiple platforms. Consider setting up a YouTube channel, and opt for sites like NewsBreak or Medium where income will land in your account every month — even if the amount varies — so you can cover your expenses.
3. Educate yourself about personal finance
I used to know absolutely nothing about personal finance. But as someone who copes with unpredictable income on the daily, I have had to educate myself so that I can manage.
If you don’t know much about personal finance, here’s what you need to do:
- Study saving strategies and build up an emergency fund that will last you three months to a year (ideally a year). This will help you cope with slow months and low sales on occasion.
- Study investment strategies: There are all kinds of ways to build up your passive income streams these days. There are also a myriad of investments to choose from, ranging from dividend stocks to fine art to real estate.
- Consume content that will help you heal your relationship with the green stuff if you were accustomed to hearing phrases such as “money doesn’t grow on trees!” when you were a kid. It’s surprising how psychological a relationship with money can be sometimes.
It’s so important to master the art of personal finance so that you have more options in life and can more easily weather the storms that too often come with being self-employed.
4. Foster intrinsic motivation
Here’s a final piece of advice I’d give my younger self about entrepreneurship:
Your motivation levels will vary significantly if you are only in it for the money. Since income tends to vary month by month, a lot of people quit during the first three to five years.
This is a a time span when the monetary rewards are generally quite meager. That’s why you need to remember why you started pursuing writing, videography, or whatever else your passion is in the first place. When times get tough and not much money is coming in, remember your “why”.
For instance, I have managed to foster intrinsic motivation by asking myself why I want to write, why I continue to show up nearly every day despite wildly unpredictable earnings, and why I love what I do:
- I like to help people and organizations I believe in
- Writing is cathartic and therapeutic
- I love to tell stories
I feel this way almost every day, even though I struggle financially sometimes. Find your reason for doing what you do — that does not involve money — and cling to it for dear life during the rollercoaster of entrepreneurship.
You can do anything you set your mind to as long as you’re patient and consistent.
