Debunking the myths of entrepreneurs and startups - a must read

Many of us begin the new school year teaching a unit based around enterprise, entrepreneurship and the process of launching a successful business startup. If you are in this boat, then this article by Luke Johnson in the Telegraph is just perfect.

Johnson is engagingly frank about the many disappointments and “failures” he has experienced in his entrepreneurial journey. How refreshing to read someone admitting that entrepreneurs learn much more from their mistakes than they do from things that go fine.

Johnson also has a go at debunking several of the excuses that he often hears from budding entrepreneurs - excuses for not getting on with the challenge of setting a business up. These excuses cover:

Lack of capital: solution - start on a shoestring
Lack of income: solution - be prepared to earn less
Business idea: solution - just do something slightly better than existing competition
Risk aversion: solution - if entrepreneurial ambition is real, get a move on

Interestingly Johnson also provides some support for the approach of buying an existing business rather than starting a new one. Existing businesses provide many advantages (customer base, brand, physical assets etc) which is takes quite a while to build from scratch. A good point for students to remember when they come to evaluating options faced by entrepreneurs described in exam papers!

Finally Johnson muses on whether now is a good time to start a business? Consumer confidence is slumping in the UK and abroad; business confidence is shaky too. We may even be heading for a double-dip recession or worse. Johnson’s response?

“Let’s just say today is a better time to start a business than tomorrow, no matter how today looks.”

Brilliant insights from one of the most respected UK entrepreneurs.