As a small business owner, nothing motivates like the hope that your enterprise will eventually buy you financial freedom.
Sadly, it’s not every entrepreneur that gets to see this reality. It has been reported that only 33% of small businesses make it to their 2nd year anniversary. Although most entrepreneurs set out with foolproof business plans, well-researched market analysis and an attitude that could bring down the moon, they seem to loose motivation, money and the enthusiasm to continue as time goes on. It is my opinion that such entrepreneurs got more than they bargained for because they were not prepared for the challenges when the complex responsibility of maintaining the balance in a densely competitive marketplace came knocking. Below are 6 little truths every small business owner should know about small businesses.
1. IT TAKES TIME TO BREAK EVEN
Many startup entrepreneurs entering the market place come with the illusion of recovering their invested capital in the shortest time possible. This puts undue pressure on both the entrepreneur and the business in general. There is need for every small business to establish an enduring business brand before going to maximize profits as no building can stand firmly and securely without a strong foundation. It is important to avoid putting the cart before the horse to prevent business failure. Every small business entrepreneur must give himself ample time to establish a clean chain of command, mode of operations, proper market presence, efficient budgeting and record keeping strategy, excellent customer satisfaction and commiserate staff salary and allowance structure. As a business entrepreneur, you need to understand that the marketplace is designed as a reward system and revenue is only generated based on the value added.
2. STARTING A SMALL BUSINESS AFFECTS YOU EMOTIONALLY
This is a rarely discussed factor that affects all small business entrepreneurs. The fact is that the journey into the realm of financial freedom will definitely take its toll on you emotionally, and otherwise. This happens because you will have to work for longer hours, make complex administrative decisions and adhere to a strict budgeting structure. Society has a way of misunderstanding every entrepreneur with the determination to succeed; so you must get used to criticisms and feelings of loneliness. These are the price you as a business entrepreneur must pay if you’re to succeed.
3. EVERY SMALL BUSINESS ENTREPRENEUR IS BOTH A LEADER AND A MANAGER
It is important to be able to switch roles, as a small business entrepreneur, between leadership and management. As a leader, the vision for, and eventual outcome of the business is your personal responsibility. This is usually an enormous weight to bear because you are to blame, or to be praised for the success or failure of the business. As a manager, it is also your duty to coordinate the daily operations schedule of the business. Most small business owners make the mistake of outsourcing the management of the business; this is ill-advised as you can’t give a new born baby to a nanny to nurture. You need to prepare yourself for duties such as accounting, budgeting, employee relations, customer relations, branding, sales and marketing, etc, because swapping between these roles will be psychologically and emotionally challenging.
4. SMALL BUSINESSES ALSO PAY TAX
Many small business owners become frustrated when the little profits made are swallowed up as taxes. Be that as it may, it is advisable to forge the habit of prompt tax payment to avoid legal action against your business which could affect your brand.
5. GET READY FOR ATTACKS AND OPPOSITION
In preparing for competition, you should prepare for the worst and hope for the best. Every business faces internal and external attacks and oppositions, especially from more established corporations. It’s best to create a unique market presence (brand) and perfect your unique selling proposition.
6. YOU WILL MAKE MISTAKES
Lastly, it’s important to know that mistakes are part of the game. It’s important to allow yourself make the necessary mistakes that build the right character and tenacity for success. Don’t allow your mistakes to end your dreams, but use them as stepping stones to success. Mistakes allow us to explore our strengths and weaknesses and to become aware of them.
Mistakes are the rungs in the ladder of mastery.
Source: gistdeck.com