The Reality of Starting a Business
Starting and running a business has many benefits. You can be your own boss, achieve your dreams and enjoy greater flexibility. However, it also involves hard work, frustrations and setbacks. An important step in assessing your suitability to start a business is to consider the realities you may face.
Think about your income
Running a business often results in long hours, no holidays and little personal income. Even if your business does make a profit you may choose to invest this money back into the business rather than pay yourself a salary. If you can afford to receive a salary, the amount and frequency of payments may be affected by the profits and expenses of your business.
Consider your family
There can be a big difference between working as an employee for someone else and running your own business. You may feel that you need to spend as much time working on your business as possible. If you do not have set hours and you cannot afford to take annual leave, this can decrease the amount and quality of time you spend with your family.
Assess your personality
While starting and running a business requires many skills, it is also useful to assess your personal attributes. How do you handle pressure? Do you have a positive attitude? Do you work well under stress? Do you enjoy interacting with other people? Answering these questions can help you to decide if you are ready to start a business.
Reflect on your goals
When you run a business, you may find that you simply don’t have the time or money to meet your personal goals. Enjoying a dream holiday, paying off the mortgage and spending more time with children and grandchildren are all personal goals that you may have to postpone as you work towards achieving your business goals.
How can you exit?
You need to consider your exit strategies. Ideally, your business should be managed and maintained as if it was for sale at all times. When starting up, you need to plan for your business to be a saleable asset in case you wish to exit or retire.
Vocabulary:
setbacks – problems, difficulties, or delays that stop, slow down, or reverse your progress, “The construction project faced several unexpected setbacks due to the stormy weather.”
suitability – the quality of being right, appropriate, or fit for a particular purpose, role, or job, “The hiring manager interviewed multiple candidates to test their suitability for the management position.”
personal income – the total amount of money earned or received by an individual person, “His personal income increased significantly after he completed his engineering degree.”
profit – the financial gain made in a transaction or business after all operational costs are paid, “The bakery made a huge profit during the holiday season by selling custom cakes.”
expenses – the costs or amounts of money that you must spend to buy, do, or run something, “Monthly expenses like rent and electricity can add up quickly for a small retail shop.”
annual leave – a paid period of time off work granted by an employer to an employee each year for rest or vacation, “She saved her annual leave so she could take a three-week trip abroad in the autumn.”
attributes – qualities, characteristics, or features that belong inherently to a person, thing, or group, “Patience and good communication are essential personal attributes for a successful teacher.”
interacting – communicating, working, or spending time with other people, “He loves his job because it involves interacting with clients from all over the world.”
postpone – to delay an event or plan and arrange for it to happen at a later date or time instead, “We had to postpone our family picnic because of the heavy morning rain.”
exit strategies – pre-planned methods or paths for how an entrepreneur intends to leave their business or investment, “Smart business owners create clear exit strategies long before they actually plan to retire.”
saleable asset – an item of property, equipment, or a business component that has commercial value and can be easily sold to a buyer, “The company’s brand trademark and custom software became its most valuable saleable asset.”