The Five Personal Threats Every Entrepreneur Faces

JAN. 13, 2016
Entrepreneurship is an exciting adventure, albeit a stressful one. Your business will likely face ups and downs, achievements and challenges, and more twists and turns than you could ever expect. Your team members will come and go, competitors will rise and fall, and your core idea will undergo an evolution until it's almost unrecognizable. But despite all those obstacles, stressors, and points of vulnerability, the riskiest and most dangerous part of entrepreneurship isn't what can happen to your business--it's what can happen to you.

There are several personal risks you'll take on when you become an entrepreneur, and none of them should be taken lightly. Almost every entrepreneur will inevitably face these risks, and if you aren't prepared for them, or if you don't address them appropriately, they could consume you.

Financial Risk. Depending on how you're funding your startup and how much revenue you have access to early on, your financial risk could be enormous. You might have invested your personal capital into the business, or you might have sacrificed a steady paycheck from a more reliable long-term career path to start the business. On top of that, your business revenue will likely be inconsistent, leaving you with unpredictable paychecks and occasional shortages. If too much of your own capital is tied up in the business, the fear of failure is very real, and could leave you with limited options for recovery, so do what you can to limit your financial liability. Seek outside funding, and find a supplemental source of income so you aren't wholly dependent on entrepreneurial returns.
Overwork. When you're in an entrepreneurial role, you'll have more responsibilities than you've ever had before. You'll be in full control of how much you take on, but because you benefit more by taking on work yourself (and because you're genuinely interested in the work), it's easy to bite off more than you can chew. It's a point of pride for many people to work as hard as they can for as long as they can, but the truth is that an overworking lifestyle will ultimately do more harm than good. Working too long on a consistent basis can leave you exhausted, raise your blood pressure, leave you susceptible to common diseases, and put you at risk for a number of physical ailments. Don't be afraid to delegate, and try to keep your work schedule reasonable.
Burnout. An end result of pushing yourself too hard, investing too deeply in your idea, and comparing the reality of your business to what you imagined can be occupational burnout. After as little as a year, you may feel yourself distancing from your original ideas and passions. Your interests may start to shift, and you'll no longer enjoy some of the tasks, processes, and ideas that captivated you initially. The big problem with burnout is that it tends to persist even after you walk away from the business--alienating you from an entire industry. To prevent burnout, be sure to take breaks and measures to keep your work interesting.
Depression. Depression in entrepreneurs is startlingly common, and more entrepreneurs are speaking up about their experiences. Being an entrepreneur, solely responsible for countless decisions and under pressure to be positive all the time, gets lonely. You're often physically and emotionally isolated, unable to share your struggles with others for fear of showing weakness as a leader or admitting defeat. Meanwhile, the stress and pressure around you grows and you don't have as much personal time as you once had to recover. Be sure to take personal time, and don't be afraid to talk to your friends and family members. Seek help before it becomes too much of a problem.
Relationship Decay. Working long hours means you'll be away from your friends and family. Being obsessed with your ideas means you'll have less time to share in your relatives' passions and interests. And when you do have free time, you'll probably be exhausted. It's no wonder why so many entrepreneurs have suffered from decaying relationships in one form or another. If you want to prevent this from happening, set your relationships as priority one--your business can take a close second.
No matter how passionate you are about your business, your personal health and well-being have to come first. If you allow yourself to deteriorate, your business won't be able to survive, and you'll be left with almost nothing to carry forward. If you make the time and effort to take care of yourself, entrepreneurship is a rewarding, enriching journey--even at its lowest points. Prioritize yourself, and everything else will follow.