Starting your own business is an exciting and nerve-wracking experience. You’re taking risks, committing all of your energy and time to these risks, and hoping it pays off in the end. Maybe you’re passionate about something completely different than your current career and industry so you’re taking a leap of faith to do what you love. Maybe you’ve outgrown your current company’s roles and it’s time to be the CEO of your own creation. Whatever your reason, there are a few things you should know before you take the plunge of starting your own business.
- Be prepared to lose income. This is widely known and expected when venturing on your own, but that’s because it is a serious concern you need to consider. The best path of action would be to save up one year’s worth of savings to live off of for the first year of your business. It will likely take you at least that long to create infrastructure and develop the business. For some, that means staying at your current job until you can afford that potentially low-income year.
- There are a lot of skills required to start a business. You may be an expert about your passion; someone who loves landscaping and gardening and wants to create a business around that. You likely have the task at hand covered, but there are so many more aspects of running a business you need to cover as well. Can you do the accounts-receivable, accounts-payable, and all the other accounting tasks yourself? Are you able to code and create a website that is unique to your company? Are you prepared to answer the phones and emails your business receives once traffic picks up? Very few successful businesses are a one-man show. Before you start, consider what roles you can learn and execute well, and what roles you will need to outsource.
- Your personal life may suffer. As we mentioned above, you will need to put all of your time and energy into the first few years of starting a business. If something doesn’t get done, it falls on your shoulders and the business may suffer. For many entrepreneurs, that means they are working from early morning until late at night, often on the weekends as well. If you’re raising a family or have other personal commitments, consider how they will be affected by you starting a business.
For anyone who is ready to go off on their own in business, the rewards far outweigh the risks. However, the risks involved with starting your own venture are serious and need to be considered before you even start the first steps. Think about your income stability and if you can afford to start a business right now. Think about all the different hats you’ll have to wear if you do it alone. And, think about how this adventure will affect your family. Starting a business is an exciting venture, but there are always pros and cons to any great idea. Consider yours before you start.