Owning your own business may sound fun and exciting. At certain points, particularly after a lot of hard work, it is. The road to entrepreneurial success is usually paved with several common challenges.
Here is a look at five of the toughest things about own your own business.
Being the Boss
Being the boss is one of the main reasons people want to own a business, but being in the hot seat presents some key challenges. These challenges generally center on managing people and making tough decisions.
Entrepreneurs prefer not to work for someone else, so it makes sense that having others work for you is sometimes tough. You have to make hiring, employment and termination decisions that don’t always make you popular. You must make the tough calls that impact the success or failure of the company. You have a lot to gain in money and prestige, but much to lose as well.
Assessing and Taking Risks
As an employee, you face some risk of job loss. When you operate a business, the potential financial repercussions are much greater. Money, time, and energy are just a few of the key resources you typically put into running your company.
As the owner, every major strategic decision you make involves some risk. Not only is your money in play, but your credibility and standing in your community are often on the line as well.
Finding Work-Life Balance
Because of the personal investment, sacrifice and risk involved in running your company, it is tough to find a work-life balance. This point is especially true early on, where it is normal to feel like you can’t walk away from a problem or an opportunity to grow.
Balancing your passion for your company with personal and family responsibilities is definitely important. Stress that develops in other area of your life can distract you in leading your company, and the stress developed in leading your company can distract your from, and even destroy, your family life.
Coming Up with the Plans
If you could enjoy the day-to-day activities involved in operating your business, ownership would be simple. In reality, developing and managing strategy demands the attention of a business owner.
You are the one who must come up with plans and ensure they get carried out. This role is quite different from being in a position to executive on directives from someone else.
Giving Up Control
While some owners find asserting control difficult, a tough hurdle for many new small-business owners is relinquishing control. Trying to do everything yourself is usually impractical. The stress alone takes away from the enjoyment, but more importantly, you won’t have time to lead if you try to do all the front line activities.
Great business owners build a strong team of people around them. They learn to delegate effectively and put the right people with the right abilities in the right positions. Build a competent and capable team to enable yourself to focus on strategy and management.
If you want to start your business for profit, fame, or fun, prepare yourself for the reality of hard work and obstacles. If you meet the challenges head on, there are a lot of great benefits that come with entrepreneurship. Understand the nature of the “boss” role, and go into it with eyes wide open.
For more great insights on starting your own business, download two free chapters of my book, Become Your Own Boss in 12 Months.