What is it really like to run your own business? Do you have what it takes? What are the realities of being your own boss? More and more people are seeing starting their own business as a possibility, however statistics for small business success are not great;
- 80% of entrepreneurs starting a business fail within the first 18 months. (Forbes)
- 50% of startups fail after operating for four years. (Statistic Brain)
- 66% of small businesses will fail within 10 years. (Tutsplus)
- 50% of small businesses fail after five years. (Small Business Trends)
So, why is this the case, and would you have what it takes to run your own business?
Are You Ready to Carry the Vision Alone?
When you work for yourself you have to carry the vision alone and decide where your business is going. The responsibility of whether the business is a success or failure is yours to carry. No longer will you have a boss who will carry the burden for you.
Should you offer a service or a product? What should you charge? How many staff do you need? How will you know which of these options will bring success? You won’t. You’ll have to guess, use trial and error, or ask someone else for advice. You’re 100% responsible for where your business goes, and if you choose wrong, you’ll have to ride out the storm and start again.
Can You Risk Your Guaranteed Monthly Income?
When you work for someone else you get a steady paycheck. You get paid for your time or your output. Just show up, do your designated work, and reap the reward. Guaranteed income. You can plan, budget, and save, and every week as you’ll know what you’re getting.
When you work for yourself you are responsible for generating every pound you make. If you don’t sell your product or service, you won’t be getting a pay check. This is definitely something to think about if you have a family who rely on your income.
On the other hand, when you work for yourself you really can make 10-100 times more money than you can working for someone else. But there’s no guarantee, it’s whether you want to take that risk or not.
Are You Ready for the Lifestyle?
Are you ready for the startup lifestyle? If you are currently an employee of another company, then starting your own as an entrepreneur is a major lifestyle change. Don’t make the mistake of assuming it is a way to get rich quick and instantly solve all of your work-related problems.
Instead of working from 9-5, and being able to switch off when your workday finishes, your lifestyle will be shifted in to a constant work mode. Owning your own business will mean you’re constantly thinking about ways to advance, improve or develop your business. As well as not being able to switch off, you need to think about if you’re ready to give up your weekends, evening and an other free time you might have had, as starting your own business requires a lot of time sacrifice to get going.
Can You Build a Team?
Can you build a motivated and qualified team? When you start your own business, you won’t always just have yourself to think about. Most of the time, it’s hard to build a business as the Lone Ranger. You need to assemble, motivate, and manage a team – development, sales, partners, and customers. Will you be ready to interview, hire and manage a team of staff?
So, if you’re thinking about starting your own business venture, keep in mind not to see it through rose-tinted glasses. With owning a business comes a lot of sacrifices, cost and sleepless nights. Make sure you have fully done your research, assessed the risks and gotten as much advice as possible before taking the leap into owning your own business.
Maybe you’re still wondering What are the First Steps in Creating a UK Business? Well we’ve got that covered too!