If you dream of being your own boss, maybe you’ve also considered starting your own business. The idea of setting your own hours, working from home and selecting only projects that interest you is appealing. However, According to the U.S. Small Business Administration, up to 50 percent of all small businesses fail within five years. Starting a business includes risks you should understand before you take the plunge.Starting the Wrong Business
Maybe you want to start a bakery because you like cookies. Are you prepared to bake for several hours every single day? Have you researched the local area to find out how much competition you have and what will set you apart? Do you have potential customers who want the types of cookies you bake? Are your cookies tasty?Evaluate your personality, skills, education and interests as you decide which business to start. By choosing one you’re passionate about and skilled to do, your chances of staying interested in your work and pushing through despite setbacks increases.
Finances
Owning your own business means you hold the financial responsibility for its success. You could turn to Kickstarter, private loans or investors for start-up capital, but you also need financial smarts to keep your business going.Financial success starts with a solid business plan. Ask a trusted advisor or a successful business owner from SCORE to assist you in creating a plan that works. Remember to create a growth plan, too, that outlines when you’ll repay debts and reach financial milestones. Finally, keep up with your paperwork so you know how much money you’re spending and making. Successfully complete these steps, and you’re on your way to financial success with your new business.
Family Relationships
Even though you may start a small business in part because you want to be home more, you’ll put in long hours as you establish your business. Working from home also means that your office is easily accessible, and a quick phone call after dinner can easily turn into hours of work.Be sure your family supports your decision to start a business. Then establish firm office hours that protect your family time as you limit the risk of damaging your family relationships because of your business.
Owning your own business can be rewarding and fun. Make sure you understand the risks and are prepared before you take the plunge, though. Discuss your endeavor with people you trust, including your accountant, lawyer and insurance agent. This way, you’re covered for liabilities you may face and increase your chances of finding long-term success.
