Starting your own business can be a fantastic feeling. It can also be a nightmare. The pride of seeing your business grow and succeed is often offset by the stress and risk of failure that you’re constantly facing. It takes a lot to make a business successful, and not everyone is cut out to handle it.

If you’re thinking about going into business for yourself, read through these six commonly overlooked aspects of business ownership. It could save you a lot of wasted time, money, and heartache.

The Risk of Failure

Before you look at any other aspect, understand that the odds are stacked against you. I’m sorry, but it’s true. Entrepreneur.com reported a study that showed only 50% of businesses are still in operation after five years. By the time 10 years pass, that number will drop to 30%.

Understand – this isn’t to discourage you. I want more people to be successful business owners, but I also want them to understand the very real risk of opening a business. You can do everything by the book but if the market isn’t in your favor, you may not survive. You really need to do some soul-searching before you decide if such a gamble is right for you.

The Time It Takes

Many people open a business with the promise of setting their own working hours. While that part is true, what they don’t realize is that running a business takes an incredible commitment of time, especially early on. More Time: More Profit calculated that a new business owner works an average of 50 to 60 hours per week.

The bottom line is, whether your work from 7 in the morning to 7 or any other time of day, 12 hours is 12 hours. You can also expect that you’ll need to pull some weekend duties to keep your business running too.

The Fact That You’re Still Working for Someone Else

The promise of being your own boss inspires a lot of people to start their own business. We’ve all dealt with bad leaders at one point or another, so I don’t blame you there. But you won’t be quite as free as you think.

Even as a business owner, you’ll have a new set of bosses that you answer to – your clients. They’re going to expect you to live up to your promises, and you have to deliver. If they ask you to deliver something in a certain way, you have to be prepared to give them what they want, within reason. If you only ever do things your own way, you’ll never gain new clients and you’ll never grow.

The True Cost of Ownership

Keeping more of the money they make is a big reason why people choose to open their own business. It’s true that you can award yourself with whatever salary you choose, but operating a business is expensive, and just starting one can cost between $5,000 and $10,000.

You might think all you need to do is rent out space, set up a computer, and get to work, but it’s not that simple. Every business is going to have to spend money on the following sooner or later:

  • Marketing and Advertising
  • Insurance coverage
  • Technological costs
  • Employee costs
  • Taxes
  • Permits
  • Licenses

Skimping on any of these costs, especially insurance coverage like disability, can be a huge risk. This is true whether you want to open your own medical practice, a construction firm, or even a simple corner shop. If you’re not prepared to put your own finances on the line, don’t open your own business.

How Long It Takes to Earn a Profit

I don’t think anyone starts a business and expects to turn a profit on day one, but many people don’t realize how long it can take. Even if your business is a small, service-oriented company, it might take anywhere from six months to a year before you actually see a profit. In fact, a common reason that businesses close is that they eat up their startup fundings early, and don’t have anything to sustain them for the year.

How You Will Truly Distinguish Your Brand

You might think that the new patent you based your startup on is truly revolutionary, but here’s a hard truth – it’s not. Somewhere out there, someone has already made something that promises to do the exact same thing or something very similar.

You won’t succeed in business if all you have to go on is how “new” your product or service is. What will, however, make you successful is marketing your product effectively, treating your clients with respect, and creating value with your brand that competitors can’t beat.



Feel free to ask questions, send feedback and even point out mistakes. Great conversations start with just a single word. How to write better comments?
Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like
Read More

What to Do if You Can’t Work Due to Injury?

Although we live in a world where health and safety are prevalent and essential, accidents can still happen. They might occur at work, they could happen during our free time, or they can even take place when we are in the hospital being treated for and perhaps recovering from another issue. Sometimes these accidents are minor and don’t cause any…
Read More

4 Signs it is Time to Rebrand Your Business

As your business keeps growing, there are a few adjustments that come with it. This has everything to do with keeping up with the market trends. By any measure, rebranding is not an easy undertaking. Needless to say, effective rebranding has seen many companies and businesses for this matter, distance themselves from a season of low income to higher heights…
Read More

Top Tips on Managing Your Office Effectively

Running an office means having the right priorities. It’s very easy to allow disorganization and stress to get in the way of daily tasks, and that can have an effect on your potential profit-making. The answer is simply a better structure for office management. If you spend more time looking for documents than you do writing them, then you’re probably…
Read More

5 Ways to Determine if You’re Ready to Quit Your Day Job

When you are just starting a business unless you have a round of venture capital funding or some angel investors, you will probably be bootstrapping your way along. This means you’ll probably keep your day job and work on your business at night and on the weekends. Don’t worry, that is how a lot of us started out. Eventually you…
business
Read More

How to Connect with Other Small Businesses?

If you want to open your business up to multiple collaborations and opportunities, you will need to network. You also don’t need to live in a big city to build professional relationships with other companies or entrepreneurs. Here is how to connect with other small businesses. Be Active on Social Media The internet has the power to connect small companies…