Balancing Fun in Business

Early entrepreneurs are sometimes drawn to unprofitable business ideas.

The pull of something that sounds fun or is aligned with your passions

Can make you blind to the economic realities:

• Your crafting business probably won’t make you a billionaire

• Sustainability is noble, but unfortunately most customers won’t pay more for it

• Clothing stores, independent event spaces, yoga studios, restaurants, food or beverage products - most of these businesses sound super fun, but can be very challenging to run profitably

When you see the financial statements of enough startups, you start to notice a correlation:

Fun businesses = bad business

Boring business = good business

Generally speaking, if the business you’re starting sounds like an awesome time

And there aren’t huge barriers to others starting one too

Then running that business will involve low prices and lots of competition from folks who, “Aren’t in it for the money.”

And

This can go too far:

As a CEO, you have to at least LIKE running your business

Or else, you’ll have no motivation to keep going.

The engine that really keeps a business running is:

Cash + Owner Energy

So, unless your business makes lots of cash,

You’d better have the energy.

A business you hate running

Probably won’t be a business you run for long.

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