So you’re thinking about opening a small business. Why?
Many people consider opening a small business for all the wrong reasons. Then they are surprised to learn that their own small business doesn’t provide what they wanted.
If your reason is one of the following erroneous ones, think again before proceeding with opening a small business.
Opening A Small Business: Erroneous Reason 1 – You Want To Quit Your Job
Not liking your job is not a good reason for opening a small business. It’s much easier and less expensive to just find another job more to your liking.
There will be parts of operating your business that you may hate. However, most small business owners have to perform those jobs because they can’t afford to hire them done. Even if you can, you still have to do each job enough to know how to supervise your employees who do them.
You need a better reason for opening a small business than hating your present job.
Opening A Small Business: Erroneous Reason 2 – You Don’t Want Anyone Bossing You
You’ll have people bossing you even in your own business.
The people that loan you money will demand certain procedures to assure return on investment. Your clients or customers will require specific accommodations or quit doing business with you. You personnel will want considerations.
So if it’s complete autonomy that you’re wanting, you should consider a hobby rather than a business.
Opening A Small Business: Bad Reason 3 – You Want More Free Time
Forget it! To build a successful business, you have to work far more hours than you do to earn a salary from a job.
Unless you are prepared to give 50 to 60 hours per week to your business, you’re wasting your time opening a small business.
Opening A Small Business: Bad Reason 4 – You Want To Make More Money
Your business is not going to start providing you money immediately. Rather it is going to eat up everything you’ve got for a long time before you can start taking money out of it for personal income.
To build a business, you have to put everything the business makes back into the business for at least the first few years. So you need to expect less personal income through those years.
So if you have an immediate need to make more money, get a second job instead of opening a small business.
Opening A Small Business: Bad Reason 5 – You Have A Good Idea For A Product
Having a good idea for a product is not reason enough for opening a small business. You have to know that there is a market for the product already established. Having to take time to educate people about their need for a product can take more time than your business can survive without sales.
There has to be an unmet need for your product and potential customers willing to pay you a profitable price for it. Then you need some assurance that a competitor won’t copy your idea and get your potential customers.
You need more than just a good product to justify opening a small business
Opening A Small Business: Erroneous Reason 6 – Grandma Left You Money
Why do you think that opening a small business is the best investment for your money?
You can invest your funds in the stock market and have better odds of getting a good return than you can by opening your own business. For one thing, the businesses in the stock market are operated by people with far more business experience than you probably have.
Having some money to invest is not a good enough reason for opening a small business
Opening A Small Business: Erroneous Reason 7 – People Tell You That It’s Easy
Don’t believe everything you read and hear. Many people will tell you that opening a small business and making it successful is easy, but most of them are just wanting to make money off you. Running a successful business is lots of work. Anyone who tells you differently is telling you a lie.
People lie about how hard it is to start and build a strong, successful business because they have something to gain by it. Usually they have products or services that they want to sell you and that you will be willing to buy once you figure out how hard business is.
If you aren’t willing to work hard on your business, don’t bother even starting it
If you are considering opening a small business for one of these wrong reasons, be smart and don’t.
But there are good reasons for opening a small business. One is that you have a product or service that is needed and wanted by a target market whose members will pay you a fair price for it. But even then, you have to know how to market effectively to them.