Many people dream of running their own business. It can be a chance to put your own ideas and ideals into practice and to benefit from the rewards of the success that this may bring. However, running your own business can mean taking a big risk.
Running your own business means that you will be responsible for making enough money to pay for the overheads of the business as well as providing for your own living expenses, pension and taxation liabilities. This can result in the business taking over your life, resulting in extra stress for you. This will also affect your family and friends, so the decision, when taken, must reflect the views of the other people who will be affected by that decision. Running your own business means making many more decisions. You will have to make decisions that you have never had to make before. Ask yourself whether you are the type of person who can make decisions - and make them correctly.
You will need to:
- become an expert in most areas of your business;
- deal with people that you have not dealt with before
Many new businesses fail within the first two years. This is normally because they run out of money. They may be profitable businesses but, due to the lack of finance available, have had to cease trading. Proper planning can go a long way to eliminating this problem.
People often start a business because they have been made redundant or are unable to find a job. It is rare that a business succeeds in these circumstances unless there is a genuine likelihood of success or the new personal circumstances have created an opportunity that you may not have wanted to risk from the security of an employed position.
A common problem encountered by people setting up in business is the amount of time it takes, which means increased expense and delayed income. From experience you should allow double the time you had estimated for receiving your first payment. This is definitely the case where legal matters are involved, such as leases and contracts.
You will need to ask and answer many questions before your decision can be made. Will your product or service be the right one? Will it be in demand? What is the strength of the competition and what will their reaction be to your presence? Have you enough funds to start the business and keep it going? Only well planned ventures are likely to succeed. Your opinion that you will succeed will not be enough. Other people may take a different view.
You will need good professional advice from an accountant, a solicitor and a bank manager in order to help you make the best decisions. Starting your own business is expensive in terms of time and money, therefore it is important that you obtain the best advice in order to maximise the chance of success. The way that you approach your task and the degree of professionalism that you display will impress your professional advisers, and this should give the business a better chance of getting off the ground.