Common challenges every new business owner faces
Thinking of starting a business? Or seriously considering turning an interest or side hustle into your main job? Here’s what you ned to consider first.
The idea of starting your own business can be enticing, especially if you’re frustrated in a job you don’t enjoy or that doesn’t fully use your skills. But the reality of being an entrepreneur can be tough. Freedom comes at a price, and that price includes extra responsibility and new challenges.
To help you weigh up whether you’re up for those challenges, here are some of the things you’ll face when you launch your own business.
Leaving your job
The very first challenge a new business owner faces is leaving their current job. How do you know when is the right time to quit?
Leaving paid employment means saying goodbye to the security of a guaranteed monthly salary, healthcare and holiday pay. So you’ll need to be confident you can cover your bills before you resign.
Many people recommend saving enough money to over two (or even better, three) months worth of bills before resigning from your job. It’s also wise to have a realistic idea of how much money you can bring in a month in your new endeavour, as that buffer will go fast with no income!
So how do you secure enough money to quit your job? One way is to build your business up while working so it reaches a point where you have a predictable income from it.
But that’s not always possible. In order to earn enough money from your business, you may need to devote more time to it than is possible when working for someone else. So what can you do then?
The answer can come in the form of online business loans. These loans are specifically designed for entrepreneurs looking to start or expand a business, and can enable you to invest in your business to help it reach a point where you can work on it full time.
Being financially prepared is extremely important in starting a business, not just for the raw materials and operational costs, but also for tasks that you want to be taken off your shoulders. Let’s say your business is in Georgia, but you want to expand to Florida. You would be faced with another long to-do list just to register your business, which isn’t ideal especially when you’re not a full-time business owner yet.
Having enough budget allows you to hire a registered agent in Florida instead to take care of the state’s compliance requirements, which will tick off some stressful tasks in your list.
Building a good team
You can’t run a business alone. In the beginning, it is almost inevitable that you will be doing most things yourself. But as your business grows, you’ll need to find trusted people to take tasks off you.
Not only will they be better skilled in their specific areas, but by delegating certain tasks you will free yourself up for the areas that the business really needs you, and you’ll grow faster as a result.
Don’t have the budget or capacity to hire full time employees? Many young businesses use a team of freelancers to help them get established. You can easily find excellent freelancers today on social media sites, via word of mouth or through freelance sites.
Never having enough time
If there’s one common enemy of every entrepreneur, it’s time. With more hours in the day (and energy to match them) you can do so much more! This is even more true if you have a family. Because not only do you need to find time for your fledgling business, and possibly a full or part time job, but you need to spend time with your family too.
One solution to this problem is routine. Carve out chunks of time each week you need to work on your business and identify what needs to happen in them. And then, all being well, stick to that working routine. Even with just a a few hours a week available you can achieve impressive results if you work strategically.
Tough decision making
One of the most frustrating aspects of being an employee can be your lack of power and influence. Often decisions are made that affect you, but that you have no say in.
As a business owner, you get to make almost all the decisions. And while at first this can be liberating, you’ll quickly discover the responsibility of making big decisions, especially if you don’t have a business partner to talk them through with.
Make the right decision and your business will thrive. Get it wrong, and you will pay the price. There’s no employer soaking up the loss and continuing to pay you. So be prepared to make tough decisions and follow them through!
Photo by Brooke Cagle