3 Considerations When Starting a New Business

By Tyler Flynn

To many, the prospect of starting your own business is a daunting and risky proposition only undertaken by those with specific educational background or experience. However, the threshold for starting small businesses isn’t as exclusive as one might think.

According to the US. Small Business Administration (SBA), there are nearly 28 million small businesses and over 22 million are self-employed. Additionally, over 50% of the working population (120 million individuals) works in a small business. Small businesses constitute a huge part of the American economy, and represent a diversity of interests, management styles, products, and areas of opportunity for those willing to take the initiative and a calculated risk.

However, before diving in headfirst to your new venture, there are several key areas to consider:

1. If you have a business partner, be sure that you’re both on the same page

As the saying goes, “Two heads are better than one.” Having someone to work with on both the day-to-day operations and financial management of a business can be extremely beneficial. However, it’s essential that you both are in the same headspace and are willing to commit 100% to your business.

2. Ensure your finances are up-to-date and have been reviewed by a professional

Money can make or break a new business. The SBA reports that about half of new establishments fail within the first five years of establishments due to mismanagement

3. Get ready to work long hours

Running a business is a full-time job and requires intense dedication and long hours. Jim Rice is a chef and SSC Hospitality’s managing director, has this advice for aspiring business owners:

If you are serious about starting a business, you work all the time.

My advice for those… who want to “be the boss” is simple: you need to be ready to work regular 12-hour days if you want the business to succeed.

 

Owning a business can be an exceptionally rewarding prospect. However, be sure to review these considerations to ensure you have a long and fruitful future.