Are you trying to scare us?

Many people think being an entrepreneur is exciting and fun. Recently in class, we have been talking about the dark side of entrepreneurship. Here is a recent piece of correspondence between one of my graduate students and myself.


Jamie
I enjoyed reading your email and no I am not trying to scare you. In
fact, the Ockham guys did (very, very) well in their "liquidation
event".

Last semester I had someone ask me if an entrepreneur had ever been
successful with out pain. I had to tell them not to my knowledge,
though I am sure it is possible. It is the old risk/reward equation.
Higher reward corresponds to higher risk. Many new companies succeed.
Many do not.

There are factors that mitigate risk but still you have better than
average odds the end will not be positive. If you do succeed, the
payoff can be substantial and not just in money but feelings of
contributions to society, to family; a sense of self satisfaction.

There is nothing wrong with being a part of the corporate business
world. Most business people chose this path, pay taxes, support their
family and have satisfying lives.

But if you want to be an entrepreneur, failure isn't the worst outcome.
Not trying is.

See you in class.

Michael R. Bowers, Ph.D.
Professor of Marketing & Entrepreneurship
Academic Director, Center for Entrepreneurship
Crummer Graduate School of Business
Rollins College
ROLLINS MBA RANKED #37 IN NATION & #1 IN FLORIDA
--FORBES, September 2007

Dr. Bowers,

I just read Ockham Technologies for the first time, and I have to say
that case seems like a total nightmare to me. I have always wanted to
have my own hotel or business, but the more I learn about the process of
starting my own company/entrepreneur venture, the more I get scared. I
am not a gambling man (even though I am in Sales/Marketing), and I think
corporate career path is more my comfort level.

The reason why I am writing is really to ask the question, "Are you
trying to scare us?" No really. Is every new business this hard to
start? I have worked in the hotel business since age 15, worked in
London, on a cruise ship, and for three different theme parks, so I am
used to getting a pay check every week. Is the pay off of starting your
own business really that lucrative? Just trying to understand why
anyone would want to go through all this effort and not have a
successful venture at the end or even have it taken away from you. Am I
just naive I my thinking?

Okay, so there are multiple questions here, but I hope you get my point.
Look forward to your feedback.

- Jamie