Although starting a business may be a dream for many people, the reality can be a jarring contrast. If you’re considering your own business, a hard look at what it really entails can help you to prepare yourself and your family for the sometimes-unexpected twists and turns of a new business.
It’s Not Lucrative–At First
Anyone considering starting a business should take considerable time researching and calculating the expenses required for an adequate start-up. Your idea may require purchasing equipment, renting a business facility, buying inventory, and investing in a major advertising campaign or hiring a sales team. If you have a hefty bank account of savings, you may not require financing of your new business. However, most people must go to the bank and secure a business loan or line of credit to provide funds for the initial expenses. Many people use the equity in their homes as collateral to secure a loan. Others borrow funds from family members. Others rely on financing combined with the income from a working spouse to get them through the early months until they are able to secure a regular income. However, as the year’s pass and your business become established, you will find that you are able to garner a good income from the profits and a number of benefits.
It’s Not Easy Hours
Starting a business requires a complete commitment of time and energy to put together the diverse elements that makes any business succeed. In the early years, a business essentially takes over your life. You will find that you, your spouse and even your children begin to breathe, eat and sleep the business’s many details. You can expect to put in long hours organizing your business physically, financially and legally. You may have to consult with professionals about tax and legal matters. You may have to find and train your new employees. It is likely you will spend long hours designing a marketing plan to find new customers. You will spend time on human resource and insurance concerns. You will attend local conferences and business events to get your business known. You may have deal with small surprises you didn’t expect. In the process, you will come to know your business and yourself better, but it will often feel like you have become a work machine. But soon, your business will take on a life of its own, and you will be able to enjoy the rewards of a job well done and financial benefits of careful organization and planning.
It’s Not Fun For the Family
Although you may have visions of your spouse and children cheerfully working to help the business grow, be aware that they may not appreciate the time and energy spent on growing your business. You may spend long hours away from them planning for your business’s future. You may be distracted and stressed when you’re at home. Your spouse may have work and activities of his or her own, and they may resent time spent on your business. In truth, it is sometimes easier for families when parents work a regular 9-to-5 schedule with plenty of paid time off. A business sometimes requires working weekends and holidays to keep up with a growing customer base. Vacations can be interrupted and family events missed. However, as the business grows, it is likely that you will have a manager or other person in charge to allow you and your family to get away more often.
It Doesn’t Allow You To Do Whatever You Want
Many people start a business expecting it to free them from the constant monitoring from supervisors or bosses. Having your own business entails a different type of “accountability.” Taking care of your customers becomes a major concern. Finding and keeping good employees becomes an ongoing effort. Government regulations, taxes and legal matters become more pressing concerns. You will never quite be free of these types of oversight, but you will learn to integrate them into your business decisions.
Although, the demands of starting one’s own business can be daunting, millions of people embark on this great adventure every year. If you have the enthusiasm to implement your dream of owning your own business, and have the drive to do whatever it takes to grow it, you are highly likely to find success in your venture. Of course, don’t forget all the government regulations, taxes, etc. you must be up on, or at lease hire the right person to keep you up on them.
Registering Your Business for Sales Tax
Why Your Business Needs Financial Statements
How and When to File a Record of Employment
Accounting Terms Every Businessperson Should Know
Why Your Company Needs a Minute Book
Tidbits – I have a customer claiming they’re exempt from GST/HST?
Tidbits – What information do I need from a new hire?
Tidbits – I’ve incorporated, now what?