Many people can be nervous about starting a business, and it isn’t surprising when you consider that eight in ten companies fail in their first year.
Although there is no set structure we can follow to ensure that our business is a success, making sure we know of the potential risks allows us to craft our business plan in a more productive way to ensure that we’re covering all the bases and ascertain that starting a business is worthwhile.
Although some may not make the impression they want when it comes to running a business, others are enjoying the freedom that being an entrepreneur offers, and relish in the excitement of ensuring that a healthy profit margin is maintained.
The truth is that like any other facet of life, the starting of a business comes with its own set of pros-and-cons.
Pros of Starting Your Own Business
There are many different reasons for starting a business, but it can often be attributed to the following reasons.
Independence and Control: We’ve probably all had a role where we feel we’re not able to work to the best of our ability because of the restrictions in place. Starting our own business can mean we can craft our own vision and handle customers in a more effective way.
Financial Gain: One of the main issues many face today is the salary we’re paid. Some companies offer attractive packages, while others may have to freeze certain elements during more turbulent times. Should your business be a success, then there is a lot of potential for financial gain.
Equity: It’s become harder to retain any form if capital nowadays, but this doesn’t mean it isn’t possible. Crafting a successful business means that you have some form of equity to leave your loved ones later.
Cons with Starting Your Own Business
The cons associated with starting a business shouldn’t be taken lightly. Although certain obstacles can be overcome, we need to ensure we’re fully versed on the potential risks that arise when running your own business.
Requires Capital: If we don’t plan our business in the right way, we could find that there isn’t much money in the pot a few months later. How you control the business expense can depend on how you’re looking to finance your new venture. Regardless of whether you’re looking for a loan or investment, you will need to ensure that you have a robust business plan to hand to enforce your vision.
There could even be instances when we need to invest our own capital, so it’s important to try and work out as many financial details before going ahead with the business.
Large Commitment of Time: Although starting a business does allow us freedom as to how we operate, it will also take a large investment of time. Young entrepreneurs with no commitments may not have a problem with this, but those with family commitments may find it all overwhelming.
Risk: It would be foolish to assume that starting a business will bring us wealth and freedom without trying, as running a business takes a lot of work. There’s always a risk associated with running a business, simply because there’s no way of foretelling what tomorrow will bring. As such, changes with banks, industries and even customers can all influence as the business fares.
Being Prepared When Opening a Business
Just as there are many opportunities available when it comes to opening a business, there can also be a series of pitfalls, and while no business can foresee everything coming its way, there are things that can be done in preparation of opening a business.
As well as being able to account for expenses, we also need to ensure we have contingency plans in place in case there are periods in the business that seem quiet, which can occur frequently when first starting a business.
We should be look at what the business will do in preparation of opening a business to ensure that should there be some difficult months, the business is still able to survive.
When writing a business plan, it’s important to remember that things can change as you go along, but you need some sort of infrastructure in place that meets all the demands of the business so you’re not experiencing any forks in the road once you’re trading. You can find courses to start your own business in London: Start Your Own Business Courses
It’s also important to ensure that business owners don’t feel worried should there be aspects of a business they’re not sure of. There are often nearby classes that can aid with bookkeeping and management, and even if local solutions are scarce, there are plenty of platforms online that will allow business owners to brush up in certain skills.