Many of those that venture into setting up their own business do so in a bid to earn more income. Others may also decide to take that step for greater work life balance, due to the flexibility associated with being your own boss. Although these are valid reasons to set up a business, the different elements of having your own organisation can be quite shocking. In this blog article, we shall be discussing some of the realities of running your own business.
The initial investment
Depending on the type of business you set up, you will need to cater for an initial investment. It is likely that this investment will need to be addressed through your personal savings or current assets to serve as guarantee for the money that you will borrow. In this regard, it is essential to keep contingency budget at hand, especially as unexpected expenses crop up.
Starting and managing a business requires no small amount of resilience. The setting up of a business will test you both professionally and personally. It is highly likely that it will take years before you see significant profits, irrespective of how good the idea is. It is quite possible that for the first few months, you may not be able to draw a salary for yourself individually. This would put you in a position of reliance, as you would need to live off someone else’s income, typically a spouse or partner. The longer this takes, the further strain it may put on the relationship. This translates to having to accept lower income, which is likely to impact yourself and the household. When leaving your stable job to start your own business, you are likely to let go of certain employment perks such as leave, sick leave, pension scheme and other benefits you may be entitled to.
Setting up your own business means that you will need to grow accustomed to working long hours. The continued demands of managing a successful business will impact your personal life as the lines between home and work get blurred. This might mean that you will need to give up on leisure time in the evenings and weekends to keep up.
When managing your own business, you will need to wear multiple hats. These include business development, financial management, administration and most functions that you may take for granted today.
Although daunting, starting your own business may be one of the best and most exciting decisions you will take.