Executive Business Coach Chuck Boyce: Time to Go Out On Your Own?Since I’m a small business coach, I’m often asked for advice on starting a business. Many people are anxious to become a business owner because they want to take control of their future. Entrepreneurship is, of course, the lifeblood of America and the reason for our success. And I would never want to discourage anyone from opening their own shop. I do think it’s worthwhile, however, for anyone to ask themselves some hard questions before they take the plunge. Here are a few to think about:
A regular paycheck is an easy thing to rely on – you know how much will come in every week and can easily plan from there (of course, it’s also limiting – that’s pretty much all the money that will come in). When you run your own business, especially at the beginning, you can’t be sure what your income stream might be, unless you’re starting up with a pretty firm client list. Some people can’t handle the ups and downs of the entrepreneur lifestyle – make sure you’re at a point where you can.
If you’re in a close relationship or already have a family of your own, you naturally need to think about the impact on them. You will probably have to put in a lot more hours than normal getting your operation off the ground – can they deal with that? Or are you risking personal happiness for professional ambition?
Believe it or not, success can make you broke – if you end up with a lot of clients, you may need extra space, extra supplies or extra help to take care of them. And since the money generally comes after you deliver, you may need some upfront cash to get you through. Obviously, if you have friends and family who can afford it and are willing to lend to you, borrowing from them saves you high interest rates and a mountain of debt.
It’s hard to know exactly what obstacles could be in your way before you begin your business – but it’s worth doing a thorough risk analysis before you begin. You can either consult with other friends in similar businesses or hire a firm to conduct a risk analysis for you. The important thing is to not go ahead fueled by optimism alone – it’s crucial to know what could burst your business bubble and make sure you have a plan to protect yourself against it. Going from employee to entrepreneur can be an awesome journey. But, as in any journey, you want to make sure you have what you’re going to need along the way – and that you’re prepared for whatever difficulties you might encounter. “Independent Executive” Chuck Boyce is an experienced small business coach who can help you get the most out of your business. For more information on how you achieve your business goals, go to www.breakingfreeblog.com. |
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