Owning your own business can be challenging and risky. However, many entrepreneurs choose to start their own business every day. Deciding whether becoming a business owner is right for you can be tricky. There are many factors to consider, and honestly evaluating your abilities and personality can help you determine if this is the right move for you.
Experts agree that the likelihood of a new business failing within the first five years of starting is high, however, with careful planning, hard work and a detailed plan for starting your business, you can be successful.
Michael Ames, author of the book "Small Business Management" says that there are eight main reasons that small businesses fail:
- Personal use of business funds
- Poor location
- Over-investment in fixed assets
- Lack of money
- Lack of experience
- Unexpected growth
- Misuse of credit
- Poor inventory management
These factors are what force 50 percent of small businesses to close within their first year and 95 percent of small businesses to close before their fifth year, according to the U.S. Small Business Administration. Proper planning and execution of your plans will help ensure your success, but how do you know that this is the right path for you? Not everyone is cut out for the long hours, and hard work that being an entrepreneur entails. Here are some things to consider before you decide to go into business for yourself:
- Can you plan and organize well? - Most small businesses fail because they fail to plan. Whether it's a failure to accurately assess expenses, inventory costs, schedules, or forecast service needs correctly, these details are crucial to building the foundation of a successful business.
- Business moves quickly, do you? - Making decisions for your business requires you to think, act and react quickly. You must be able to act and think independently.
- Do you have the hustle gene? - Owning your own business requires an intense physical and emotional commitment from you. Small business owners often feel run down and burnt out as a result of their exhaustive and demanding schedules. Be realistic with yourself about whether you can keep up with owning your own business.
- Did you know your business is really a family affair? - While you build your business, your family may be feeling the pinch too. Cutting back on expenses at home until your business can turn a profit may mean some significant adjustments to your family's lifestyle. In addition to the financial changes, the amount of time you have to dedicate to your family will change, too.
- Are you a bit of a chameleon? - Being a business owner requires you to have relationships with all kinds of people from all walks of life. Whether they are your employees, your vendors, your accountant, or your customers, being able to adapt to the different personalities and situations you find yourself in daily is a must for entrepreneurs.
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Taking the time to evaluate your character and understanding what becoming a small business owner takes is crucial to the success of your business. If you are considering opening your own business, the vended laundry industry may be right for you. Laundromat owners enjoy a fairly recession-proof business which requires very little involvement. Want to know more? Give the commercial laundry experts at T & L Laundry Equipment a call today! For more than 40 years we have been providing commercial and vended laundry owners in South Carolina with the best in service, sales, and equipment. Find out why T & L customers are the happiest customers! If you need to buy coin operated laundry equipment in South Carolina, save time and money with T & L.
