Being your own boss sounds like a dream come true, right? But as with most things, the reality of business ownership is very different from what new business owners perceive. Owning a business often means working twice as hard as you used to when you had a corporate job, and with no one there to pat you on your back. We have identified some of the main issues and adversities business owners face, along with tips on how to manage them so you can reap the rewards of business ownership.
The cost of doing business
Starting business costs you—not just money, but a lot of time and personal sacrifices as well. A 2015 survey by email marketing provider Constant Contact revealed that 56% of entrepreneurs felt like they could never take time away from their business. 51%, on the other hand, said they don’t have any time to focus on themselves, and more than 40% couldn’t take any vacations or see their loved ones as much as they would’ve liked.
The challenges of business ownership
Financial stress, the looming danger of burnout, managing employees, ensuring compliance… the list of potential problems a business owner might face is virtually endless. Managing your staff is consistently rated as one of the most stressful aspects of business ownership. From choosing the right team to ensuring you work cohesively as a unit to drive the business in the right direction, all while remaining happy, fulfilled, and productive: it sure sounds like a perfect recipe for a lot of stress.
Additionally, owning a small business can be a drain on your finances, at least at first. As the saying goes, you need money to make money and according to research, over 40% of all entrepreneurs had their money tied up in their business. Learning how to manage separate business finances from personal finances can be another challenge, but it’s vital to ensure your business’ success.
Poor cash flow is one of the main reasons why businesses fail, so the sooner you can master your business books, the better your chances. Take the time to understand your business finances, get to know your way around your business accounts, or, if your finances allow it, hire outside help. While managing your finances can be a source of stress, it will most certainly help you in the long run.
This can also be very helpful for managing yet another major challenge associated with business ownership: unanticipated expenses and costs. Challenges in the form of the market shrinking, backed up bills or taxes, unforeseen emergencies, dwindling capital or bad debts can not only impact your mental health but also affect your business reputation and lead to business failure.
Business owners also need to stay mindful of changing regulations and compliance issues. Businesses today need to be constantly in the loop, following the ever-changing markets, technologies, and trends to ensure they stay compliant. Depending on the industry you’re in, it might be worth bringing in a consultant or outside assistance to help you navigate some of those complexities.
A business owner needs to stay resilient in the face of adversity. But too much stress can have a profound effect on your mental health. Burnout is a serious risk: fatigue can lead to rash, poorly thought out business decisions which can harm your chances of success. More often than not, small business owners and entrepreneurs work long hours with lots of stress, and the potential for fatigue is a constantly looming threat. The key is finding the right pace: one that allows your business to keep moving, without grinding you down.
In addition to fatigue and burnout, business ownership often comes with feelings of guilt and responsibility for how the business is doing and what the impact on your employee is. Over 30% of small business owners find decision-making stressful and suffer from feeling overwhelmed. Imposter syndrome is another mental toll business ownership might bring down on you. The key to overcoming it is to accept everything including any mistakes you might make are part of the learning process.
With all this in mind… why become a business owner?
Starting a business can be a drain on your finances, riddle you with doubts, cause burnout and lead you to miss precious time with your family and loved ones. So why do it?
For many small business owners, the sacrifices and challenges of business ownership are absolutely worth the effort. Owning a business comes with unrivaled flexibility and the freedom to innovate, make your own mistakes and control your fate. As a business owner, you have total independence. This doesn’t just mean setting your own work hours or deciding when to go on a holiday, but puts you in charge of every decision, no matter how small it is.
What’s more, running your own business gives you a chance to monetize what you love or what you’re good at. Whether it’s a product you’ve invented, a service you’re carving a niche for, or simply your hobby, turning it into a business can not only be financially smart and lucrative, but incredibly fulfilling. Over two-thirds of all business owners say that, despite the problems they face, they love running their own businesses and pursuing their passion.
If you’re looking forward to managing the financial aspect of your business smoothly, hire a reputable accounting firm. One of the most reliable firms in Florida that you can turn to is Swiftbooks, LLC. Call 786-204-2881 to book a consultation or to turbocharge your business with a FREE trial today!