PITFALLS OF OWNING A BUSINESS

Owning a business is a fulfilling path to follow as for many of us being your own boss is a dream perhaps the dream’ as we are not helping anyone build their own dreams but we are building our own dreams and in most cases, we start from the bottom and once we reach the top we feel actualized and we feel proud of our achievements. I like to borrow a thought from Tim Berry the founder and president of Palo Alto Software that, you are not your own boss, your customers are the boss, your bank is your boss and your fixed costs are your boss.

Avoid-Small-Business-Pitfalls

Before you start, it’s important to save yourself time and money by being aware of what is involved in setting up a business and what is involved in running a business. Involving yourself in proper planning is an important factor in turning dreams into realities. Operating a business is not all about being your own boss, it makes you the CoE, Chief of Everything’ thus you need skills in different aspects of a business. It means having the necessary management skills, technical skills, administrative skills and most importantly a vision to succeed above all things.

Like every other success and achievement in life, you will sacrifice your time and take risks associated with the business which is a key characteristic of any entrepreneur.

So what should we expect when starting a business?

  • Expect to take a high financial risk. The level of risk you take will be directly related to how good your prior planning is so as to avoid putting too much money in the wrong investment.
  • Inconsistent income since there are times when the income will be high and other times when the income will be too low.
  • Much time will be eaten’ by the details of running a business there for you will not be able to do the things you enjoy. You will also be devoted to your business and you are likely to work long hours.
  • Need to learn new skill. Running a business requires diversity in skills to ensure the smooth running of a business, you will need to learn skills like book keeping, inventory control, and financial controls among other skills.
  • Expect to take a high financial risk. The level of risk you take will be directly related to how good your prior planning is so as to avoid putting too much money in the wrong investment
  • Patience is an important quality since a business will take time to grow so as to reach its full potential, this time can be as short as one year and as long as three years depending on other factors. Manage yourself well, ensure you have appropriate forecast and monitor against expectations.
  • Unanticipated growth if your business grows too fast, it may cause a strain on the limited business resources which may cause the business to self-destruct from the inside out. Therefore it is important to plan for growth ahead of time.

We need to realize that a business idea will not make the business successful but the efforts driven into a business is what defines the success of a business.