Starting a business is a decision that will change your entire life. Running a business requires a large amount of learning, responsibility, patience, dedication, and some luck. In addition, it requires help from others including investors, employees and vendors. You should understand a few things about the realities of starting your own business before you head down the road of self-employment.
- Time and Your Personal Life
You need to understand that starting a business is more than a full-time job. It will require long hours of work, especially for the first few years. If you plan to start a business, you must be prepared to sacrifice your personal life and dedicate most of your time to the company.
- Financial Uncertainty
Starting a business means living in a state of financial uncertainty for some time. Many new businesses do not see significant profits for three to five years and you will likely have to take on new debt at some point. Revenue will be uncertain at the start as markets, name recognition, and customers are developed. Finances will most likely become a daily concern for a few years after starting a business.
- Responsibility for Employees
Every successful business requires employees. As the owner, you will have to take on responsibility for these employees. This includes their safety as well as their financial well-being. You will need to learn to delegate tasks and trust employees in key positions with the future of the business. Additionally, you will need to handle issues like disputes between employees, complaints, and potentially problematic workers who steal or vandalize equipment. These issues will persist for the life of the business.
- Liability and Legal Issues
Liability means the business or the business owner is legally responsible for something that happens involving the company. Liability and legal issues are a reality few people think about when starting a business. The truth is that a customer who slips, an employee who feels sexually harassed, or a product that causes an injury can all result in expensive lawsuits. Liability and other legal issues, such as patents, are a part of starting and running a business.
- Customer Service and Marketing
Your new business needs to address customer service and marketing in order to be successful. You will need a system to respond to customer inquiries and complaints, and you have to maintain marketing information and databases for advertising. You will have to develop a strong business personality that is distinguishable from your competition. You must understand that a significant amount of time will be spent responding to customers and developing marketing or advertising strategies.
- Competitors
Competitors with established businesses could try to undermine your company at the first sign of success. They could steal your ideas or co-opt your marketing. They could actively campaign against you or harm your reputation online. You must be ready to compete aggressively when starting a new business.
