- Two of the most relevant problems plaguing small business owners are the lack of personal insurance and start-up costs. Owners are confronted with the issue of either paying their medical bills out of pocket or paying expensive individual plan rates for big insurance companies. Additionally, whether a business deals with services or products there are always start-up and maintenance fees to be paid. All businesses must register with their state economic and development department so they can be held tax accountable, and some businesses must pay taxes quarterly. Not to mention the costs of materials needed to conduct business on a daily basis---computers, software, office supplies and equipment, postage, advertising, etc. There are major costs involved with running and growing a business that some small business owners do not anticipate.
- Small business owners must learn and understand how to manage money over long periods. Delaying gratification is and important attribute in successful businesspersons. Being able to identify worthwhile business ventures versus wasteful spending saves a lot of money in all areas of business and enables owners to create a foundation of security.
- When leaving a secure job to become a business owner it is likely that there will be a bit of culture shock. Contrary to being a salaried employee, business owners are in charge of all daily functions and the progression of the workday for themselves and others. This is often difficult for a former employee to understand because when a worker is on the clock, they're being paid for all of their working hours. However, business owners decide how many working hours are actually moneymaking hours. Unless there is some form of residual income created, when there is no profitable work done, there is absolutely no money made.
- Many small business owners run into the "I can do it all myself" roadblock. It doesn't work for the most part because it is cause for burning out, quickly! Though an owner may not be in a financial position to hire employees, certain aspects of his or her workday should be outsourced. If a task takes a business owner any more time than it would take a professional, it should be outsourced. Common tasks that are outsourced to freelancers or contractors are accounting, legal work, computer technical work, lawn care, housekeeping, graphic design and grunt work. "Grunt work" can be described as tedious activities that a person of skill and CEO caliber should not be doing. Filing, bookkeeping, collection phone calls and letters are perfect examples of grunt work and should be outsourced to a physical or virtual assistant.
- Alleviate the shock of going into business for yourself by starting a part-time business while working a full-time job. This way you can work up to finally quitting your full-time job and be able to afford and sustain your new entrepreneur lifestyle.
Comments
ceholmes said
on 7/3/2009 small buisness grants should not be ignored, never know when you can qualify for any extra funds to help any costs.
sallyemaycreate said
on 7/3/2009 Important tips to take into consideration... Thank you for your expertise. 5*