Being your own boss can produce a lot of intrinsic rewards, but only after you effectively jump some challenging hurdles.
If you are thinking about going it alone in the business world, you need to understand fully the pros and cons of such a move. Yes, there are plenty of rewards that come with entrepreneurship, but the path to success is normally full of hurdles.
Before you take the plunge and start your company, consider these five major challenges in business ownership.
If being your own boss is your main motive for starting a business, recognize that being in the hot seat presents some key challenges. These obstacles often stem from managing people and making tough decisions.
You know the challenges of employment from a worker's perspective, so you probably get that managing others can be extremely tough too. You have to make hiring, employment and termination decisions that don't always make you popular. When employees aren't happy, you become the subject of their ire. Additionally, you make the tough calls that impact the success or failure of the company. You have a lot to gain in money and prestige, but much to lose as well.
When running a business, the potential financial repercussions of a bad decision are great. Money, time and energy are just a few of the key resources you typically put into running your company.
As the owner, you make the critical strategic decisions that involve significant risk. Failing to evaluate properly the risk-to-reward ratio of a decision is a big mistake. Not only is your money in play, but your credibility and standing in your community and with your staff are often on the line as well.
Developing a Work-Life Balance
It is hard for many new small-business owners to find a healthy work-life balance because of the time, sacrifice and money involved in running a company. In the beginning, it is especially difficult to walk out the doors of your new enterprise for date night when you must work your hardest to create a strong, stable revenue model
Balancing your passion for your company with a personal relationship and family responsibilities is challenging, but important. When you don't prioritize non-business relationships in your life, the stress that comes from home can hinder your ability to lead your company.
Don't make the false assumption that you will always get to enjoy the "fun" day-to-day activities involved in operating your business. In reality, coming up with short-term and long-term business plans, and then managing the execution of these plans is a major role for an owner. Much planning takes place behind-the-scenes.
You are the one who must come up with plans and ensure they get carried out. This role is quite different from being in a position to execute on directives from someone else.
Sharing Control and Delegating
It is tempting for many new owners to try to control every aspect of operating the business. You soon learn, though, that trying to tackle everything yourself is impractical and not very healthy. The stress alone diminishes enjoyment, but more importantly, you won't have time to lead if you try to do all the frontline activities.
To build a strong and enduring business, surround yourself with a strong team. Learn to delegate to free yourself to focus on high revenue activities. The goal is to put the right people with the right abilities in the right positions. Make good hires and trust the team to execute on your strategy and deliverables.
Starting a company with unrealistic expectations of money, fame and fun, without any heartache, is a setup for pain. Go in with your eyes wide open to the hard work and very real challenges that entrepreneurs face. If you remain hopeful and disciplined, and you are more likely to achieve satisfying results.
Take the next step in your path to owning a business and get the Become Your Own Boss Workbook.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.