Starting your own business can be extremely rewarding but it also involves a great deal of risk. You want to avoid major foundational mistakes in the beginning to ensure you’re in an optimal position to succeed. In this article we explore the four most important things to understand before beginning your own company.
1. Assess Where You Are in Life
Starting a business venture obviously requires brains and bravery but, even for the cleverest minds, it also involves countless hours of hard work. Owning your own business means something always has to get done. Don’t be surprised if you find yourself working 60 to 80 hours a week in the beginning. This means you’ll have to ask yourself one very important question and answer honestly before you get started – are you prepared to surrender your personal life for the next two to three years?
Research and understand what regulations, licenses and taxes you’ll have to comply with in order to obtain and pay for your business. After your research is complete, it’s a good idea to meet with a lawyer and accountant to confirm your understanding and shed light on any potential road bumps you may encounter. The last thing you want is for some technical legality or missed administrative detail to come back to haunt you.
3. Factor In How Much You Need to Live
Don’t let your dreams of becoming a successful entrepreneur distract you from your present reality. Take your current living costs into account and remove all of the unnecessary extras. Also, give yourself breathing room for unexpected expenses. If this means taking on a part-time job or keeping your current day job until you start becoming reliably profitable, then do it.
4. Keep a Close Eye on Expenses
Beware of both over and under-spending. Starting a business can be financially frustrating, so you’ll have to quickly learn where and when to spend. Of course you don’t want to waste money, but it’s just as important to spend when it’s necessary. For example, you don’t want to be a penny-pincher when it comes to things your business needs. Stay on top of technology and make smart investments in technological advancements that can help take your business to the next level.