Owning a business is an exciting and challenging adventure. There are many benefits to owning a business, but there are several challenges as well. Here we will discuss the challenges and risks that come with owning a business. Then you can make the best decision for your individual needs and goals.
Being independent and taking responsibility
Individuals looking to own a business often want the independence and freedom to set their own agenda. But deep down many of us like having a boss – someone who tells us what to do and when to have it done. When you run a small business, you are in charge of creating your own to-do list and then following through. It’s up to you, no one is holding you accountable. You have to decide what is important and how to allocate your time. Ultimately, it is up to you whether the business succeeds or fails.
Having enormous flexibility
Flexibility is another huge draw of owning a business, but it has its downsides. Each day is like a blank sheet of paper. Work doesn’t just start at 8:00 or 9:00 AM and end at 5:00 or 6:00 PM. Often owning your own business is an around the clock gig. You don’t just clock out of the office and leave your work behind. Your brain is constantly thinking about the next thing you are going to do. Yet, if managed wisely can give you the freedom to travel, spend time with family, and pursue other goals.
Experiencing an emotional roller coaster
Buying and running a business comes with many emotions. These emotional ups and downs are big for most entrepreneurs. You have to be able to handle both if you want to own a business. For example, things can move slow and take months to start making a profit. This can be frustrating and disheartening. Conversely, when you have wins – you are at the center of it all. Successful business owners know how to stay motivated through the hard times and celebrate the wins.
Facing an unknown future
You purchase or start a business hoping it will flourish. No business is perfect, there are always issues underneath the surface. Until you take the reigns, it is hard to get an accurate and complete picture of the business’s operations. For instance, customers may be attached to the previous owner and leave with a change in management. Additionally, financial statements may be incomplete. This is a problem particularly in small businesses where the owner is managing many areas of the business. A few other things to look out for include:
- High employee turnover
- Outdated equipment
- Unreliable suppliers
- Existing debt
- Cash flow issues
- Social media image and reputation
Buying a business or starting your business leaves the future unknown. This uncertainty can propel you forward or cause you to drag your feet. The decision is up to you whether you are willing to take a risk and leap.
Creating and implementing your vision
Whether you step into someone else’s shoes or start a company you’ll have to make it your own. This begins with creating a vision. When acquiring a business you will need the buy-in from key employees to effectively implement the new vision. This takes time and if done too fast, it can cause things to go downhill. A well-defined vision can create shared purpose, motivate individuals, and establish unity in the company.
If you decide to start or buy a business take time to consider all your options. By putting your heart and feet behind your business venture it can be successful and rewarding. There will be hard days and plenty of challenges, but also big wins and emotional highs.
Peak Business Valuation loves to help small business owners. Whether you started your own company or are looking to buy one, we can help. A business valuation can help you determine a fair purchase price and identify areas to grow the company. We welcome any questions you have. Please reach out via email or through a phone call.