Starting your own business can be a very exciting endeavor. It allows you great freedom and opportunity to explore and develop your own business idea. It is an opportunity for you to exercise your creativity and thinking ability to do the following:
-Research your business idea
-Develop a strategy
-Determine your marketing approach
-Address key operational issues
-Make your own decisions
Develop your business idea from the ground up Successfully starting your own business can provide a sense of accomplishment and satisfaction in knowing you did it yourself. However, if the business fails, you must assume all the liabilities and emotional strain that goes with it. There are many misconceptions surrounding owning one’s ownbusiness. Consider the following common misconceptions:
I will be my own boss. Being your own boss does not mean you can play golf or go fishing anytime you want. The reality is the business and your customers become your boss and can demand 50-65 hours per week.
I can get rich overnight. Small business and free enterprise provides a great opportunity to build wealth; however, it will take time. Studies indicate that more than a third of small businesses that grow significantly, do so after ten or more years of existence.
I can expect immediate income from my business. This is not likely. Generally, it takes 6-12 months before a new business can start to pay the owner adecent salary. You should have a cash reserve orsavings to provide financial support for you andyour family during the start-up phase.
I can start my business with little or no money. Poor capitalization is one of the major causes of business failure. Lack of capital results in negative cash flow which can result in poor business decisions and serious credit problems.