It’s been a few years since I was in command of my own business. When digital photography was new, my company offered digital pre-press services to professional photographers: color correction, retouching, and restoration.
Over the years, I’ve learned that entrepreneurship is not for the faint-hearted—building a successful small business is no small feat. Here’s what else I’ve learned.
Make risk your friend
Running your own business is filled with risk. (You could say risk is the price of admission.) You put up your savings (maybe even your home equity) and a tremendous amount of time to determine your own destiny. In fact, a recent survey conducted by OnDeck reports that 73 percent of business owners dipped into savings to get started. Unfortunately, the cold, hard, facts are that only about half of the businesses that start today will still be around five years from now.
Like many small business owners, I didn’t start out with a completely thought-out business plan. Go through the process of creating a business plan, revisiting that plan regularly, and honestly evaluating where you are. This will help you anticipate what might be ahead, so it doesn’t hit you by surprise—which is what really causes fear, anxiety, and stress.
Plan for financial uncertainty
Most of the entrepreneurs I’ve known will tell you not to expect to take much home the first few years. Planning and preparation will help overcome this stress.
While it might be tempting to ignore your own financial needs and put your business first (28.9 percent of those surveyed by OnDeck), don’t succumb to the temptation. Those first few years, you will likely be unable to pay yourself what you were making before you started your business, but taking home something on a regular basis is important—even if it’s just a token. It’s also a good idea to set some savings aside to live on during the first couple years.
Allowing personal debt obligations to slide isn’t wise. For most small business owners, the need to have a good personal credit score to qualify for a loan will probably never go away.
Fix that work-life balance
Nearly a third of people surveyed say they work on the weekends, and three out of four check into work on the days they take off. For them, the work-life balance is a pipe dream.
Consider setting limits on how often you check your phone or computer in the evening. Many entrepreneurs detach themselves from work until the rest of the family goes to bed, giving them an hour or two to go through email or work on a new proposal.
There are many stresses associated with owning your own business, but finding ways to cope makes it all very rewarding. What’s more, most entrepreneurs (nearly 88 percent) said they would jump into their business with both feet all over again. Would you?
Photo credit: Lauren Kallen