Why Entrepreneurs Work Too Hard

Posted May 22, 2008 in Starting It, Finance, 4 Comments »

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  1. "Dude, I'm working 9897685709856056 hours!"
  2. "And, I'm only getting paid $2!"
  3. "This is how hard REAL entrepreneurs work! HIGH FIVE!"

That's the fact of an entrepreneurial life, right?

You know:

  1. Work ridiculous hours.
  2. Get paid barely anything.
  3. Can't afford health insurance, dental care, and the other yaddas.

"OH NO!"

But wait...

Why do some "magical" entrepreneurs out there seemingly:

  1. work twice as less as you
  2. make five times as much as you

Get this.

Two types of customers exist:

  1. Customers that will work you like mofos for two dollars.
  2. Customers that pay you splendidly for your valuable work.

We tend to:

  1. find the very first client that wants to work with us
  2. accept meager contract price
  3. work butt off for little pay that ultimately exhausts us with incessant customer demands

Take Web Designer Kelly.

  1. Kelly's working on a website for a mom-and-pop shop.
  2. They're paying her a measly $100 for a website that must include a "custom content management system, multi-user access, permissions galore, a custom blogging engine, and a lead system."
  3. She works her freakish bootay off.

50 hours of work later:

  1. The mom-and-pop's peeps don't like this, and this, and this, and this, and this.
  2. They want her to redesign humongous freakish parts of the website.

50 more hours of work later:

  1. "We're getting there," the mom-and-pop tells Kelly.
  2. "Now, I want you to change this, and this, and this, and this. Also, can you add 20 of these extra features? Thank you."

Exhaustion sets in.

Kelly wants to escape.

But, she's determined -- because hey, Edison never quit, so why should she?

"If I just stays in the ball game, I'll be a-okay!"

But no.

She destroys her morale, burns herself out, and the simple thought of running her own business scares the beejeebus her.

Choose Your Clients Wisely

Horrifically-cheap clients that want you to change the world for them for $2 will:

  1. exhaust you
  2. drain your morale
  3. make you work exponentially horrific hours
  4. run your business into the ground

Rich clients and organizations that will pay you richly for your efforts will:

  1. boost your morale
  2. connect you to profitable referrals
  3. grow your company
  4. give you a life

Working for cash-strapped mom-and-pop shops might be good for the initial learning experience; but relying on unprofitable clients will exhaust you to your core -- and put your business on the brink of falling off the cliff.

Look for richer clients.

Think the Fortune 500. Think the government. Think bigger clients.

At the least, think clients that can pay you above market rates for your services/offerings.

(And, if you can couple that with recurring work, you'll set yourself in super fantastic shape.)

Those big guys can likely service those mom-and-pop shops in some way anyway (through economies of scale), so you won't need to sacrifice your welfare.

Win for all.

KABOOMSHAKAH!

Think bigger.

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More Business Tips You Might Enjoy

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  3. How To Completely Fail At Your Business (tip #1)
  4. What Separates Google From Other Companies?
  5. Why Motivational Posters Suck

4 Comments on Why Entrepreneurs Work Too Hard

mika

Posted @ 12:29 PM on May 22, 2008

reality check is good sometimes :) i think i've got to switch my perspective if i want to be doing this freelance thing for a while


steve is kelly

Posted @ 06:00 AM on May 23, 2008

Wow triz, it's like youve been a fly on my wall. this is exactly what happened to me, i tried hard to please every customer exactly how they wanted, figuring the heavens would open up and pour tons of new customers my way. but it never did. and all i got was burned out, because after all that pleasing, they were never satisfied and I was always broke. and after the fact, they never even used their websites in an effective way. so now i turn away 90% (yes 90%) of the people that come my way, because I can tell they are trouble when the first question they ask is "how much does a website cost"?. I'd rather be half poor than burned out and depressed. at least when I am happy and optimistic I can climb to higher levels and have time to work on my own projects. That is impossible when you're wasting all your time try to help other people. So now my challenge is to learn how to stop attracting these rejects, and start attracting the bigger, better customers.


David @ PostcardPerfect

Posted @ 03:13 PM on May 29, 2008

There was a similar article in Inc magazine (April, I think) that advised trying to sell to corporations instead of consumers. Essentially - companies are less likely to flinch at prices and are easier to work with.

This is a great follow up to that because it takes it one step further. Established businesses are better than new / small ones. Good post.

Being a small company though, I secretly hope some of my vendors / resources don't realize this. If they do, I won't be able to afford 'em. So....would you mind deleting this post?


The Trizle

Posted @ 07:03 AM on May 30, 2008

@Steve: Totally know where you're coming from :) The initial business can be good (just to start), but after a while, it can really take its toll on you because of the constant headaches.

@David: I think we're deleting this post soon to put it into our lil' guide, so you very well may get your wish soon :)


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