Keeping in mind the high unemployment rate and reduction in wages, starting up your own business seems to be a great option these days. However, before starting off your own business, you need to understand the pros and cons of that business. You will have to be prepared in order to take the risk of starting your own business. Here are certain things which you need to consider before you start off your own business:
1. Changes in lifestyle: After you start off your small business, life will be completely different from your corporate life. You will have to work harder in order to set up your small business. You won't be able to take any paid vacation when you're setting up your small business. Moreover, the effort you put into your business will lead to a little payback in the initial stages of your business. Thus, you need to have a dogged determination and passion when you start up your business.
2. You may become poor: You may end up spending all your savings when you set up your small business. You will have to spend your money in equipping your office and buying inventory for your new business. So, you need to plan how you and your family will survive the start-up phase of your business. You will have to budget your expenditures in such a way that you will be able to support your family during the low income phase of your business.
3. Multi-tasking: You won't be able to hire a number of people for various profiles when you're at the initial stages of your small business due to financial crunch. In such a situation, you will have to multi-task and wear many hats. You will have to do your own sales and marketing. You will have to be upfront and ask for funds and loans on your own. Thus, you should have the required information on your finger tips and also the required management skills.
4. Get used to rejection: The initial set up phase of small business can be very tiresome. You will have to know how you can sell off your product so that you can make it popular. In order to do so, you will have to be patient enough and have to get used to rejection. You have to be determined, persistent and resilient. Unless you get used to rejection from potential clients, you won’t be able to deal with the pressure of setting up the small business. Once you're able to deal with the nay-sayers, you will find that slowly and slowly your business is becoming a successful venture.
5. Get support: If you're a lone-wolf, it will be difficult for you to survive the initial set up phase of your small business. You will have to get support from people and you will need near and dear ones to cheer you up in days of distress and guide you. You will be able to get support from your spouse and your closest family members. When you start a business, make sure that you take their opinion. They should favor and support your decision. You should make them understand how much you want to set up this business and be successful in it. I'm sure they will definitely support you. Apart from that you should also build up an advisory team which will include an accountant and lawyer who can help you in dealing with all the business related issues.