According to the U.S. Census Bureau, nearly 5 million businesses were registered in the last year, which is a 43% jump since the pandemic. Although running a business appeals to most people, barely half of these companies come close to having a chance to survive in the long term.
Being an entrepreneur can be an absolute pain, especially if you lack the resources to keep up with the challenging modern economy. Here are the 6 things no one tells you about being your own boss so that you can better prepare yourself to beat the odds.
1. You Need to Be a Social Butterfly
Are you someone who struggles to build connections with other people? This is where you will automatically be doomed to fail. When you start owning a business, you must realize that you need other people’s help to succeed.
Everybody is connected, whether this be your staff members, suppliers, customers, or anyone else involved. It always helps to be a people person if you want to get ahead of your competitors.
When you become a person with social connections, you can open many doors. Business opportunities will come your way more easily. If you are a social pariah and no one wants to work with you, you will struggle to get the best product deals with manufacturers, and your company’s culture can turn toxic.
There is a reason why businesspeople attend social events as much as possible. The next time you attend a networking event, you should try to meet as many people as possible while handing out your business card.
Make valuable connections, and then you will reap many rewards because we are all social beings who can lift or tear each other down. It would be best if you refrained from deleting your contacts list.
You never know when you might need someone’s help because we all seek valuable partnerships to grow businesses.
2. You Will Burn Out
If you jump on any social media platform, you will find numerous motivational quotes from entrepreneurs from various industries. You may even be convinced to attend a motivational seminar to gain insights.
These are essential because entrepreneurs are most likely to burn out. Even if you feel ready to take on the world now, you cannot be sure of how you will feel several years in the future.
Working 90-hour weeks can seem glamorous because billionaires often brag about sleeping at their offices, but many entrepreneurs need help to maintain that pace for a long time.
You may come to work every day feeling sleep deprived, and some family members might feel neglected if you spend little time with them at home. Many problems can arise in life, and entrepreneurs need to find the motivation and energy to push past these struggles to focus on their business goals.
So, no matter how passion-driven you are, there will still be times when you will have the urge to throw in the towel and walk away. This is because doing what you love and running a company is exhausting.
The best thing to do is take many breaks, even if they are little ones. Give yourself a breather, and do not take on too many responsibilities. You can re-energize yourself by delegating important tasks to other qualified professionals to avoid burning out.
Check out these CFO & Controller services for help with managing your business finance so that you can enjoy a well-deserved break.
3. Being an Entrepreneur Is Nonstop
If you worked for another company, you could leave the job when the office closes without the pressure of answering calls or emailing back. Entrepreneurship is very different because you never get to switch off.
When you start your own business, there will always be more work to do. You will always need to pay attention to different aspects of the company while juggling employees.
When no one puts any restrictions on you, it becomes nearly impossible to “call it a day.” You can quickly end up working nonstop if you do not set boundaries for yourself.
It is crucial to establish proper working hours if you want to have a healthy work-life balance.
Only schedule consultations within your personal work hours. If you work overtime one day, you should reduce your work hours the next day. Otherwise, you risk burning out before your business takes off.
4. People Will Drive You Crazy
Although owning a business involves working closely with others, this will drive you crazy. There will be days when your employees are unhappy, your investors are disgruntled, or your customers are furious.
You may also get stuck between a rock and a hard place where you will need to be the “bad guy” and make tough decisions that can upset others. Even if you are an entrepreneur busy running a business, you will need to be a mentor and a therapist to your staff sometimes to calm tensions.
5. You Will Always Need Money
Running a business is costly work. You will always need to invest money in labor, advertising costs, operational costs, and so much more. Many entrepreneurs underestimate the loan they need and do not have enough capital.
This is when business owners are forced to ask for funding. Asking for funding is challenging, especially if you must ask the same investor to pour more money into your business.
You should not feel guilty about this. It always helps to devise a plan of how you will give investors a return on their investment. If you have a solid plan that can convince people to trust you, you should have no issues securing funding.
6. You Will Lose Money
Many startups make the mistake of investing their money in the wrong things. For example, you may be budgeting too much for advertising costs than required.
To avoid running out of money too fast, you should only use 10% of your budget for marketing costs. Otherwise, you can accidentally spend way more on advertising than the profits you generate.
Experience Business Ownership
Even though you know the top problems with being an entrepreneur, the experience is still worth it. Nothing beats the freedom of being your own boss and working for yourself without the hassle of dealing with people you do not get along with.
However, to avoid burning out, it does help to delegate tasks to third parties to take a little burden off your shoulders.
With the right help managing your finances, you can turn your attention to other parts of the business to make it flourish. If you enjoyed reading this entrepreneurship guide, check out some of our other posts.