Thursday, October 19, 2006

Starting Your Own Business

Starting your own business
About two years ago, my husband and I decided to research what starting your own business would be like. He knew his industry and area of expertise incredibly well and we had known several people who successfully started their own businesses and loved it. Starting your own business sounded like a great idea and something that we figured we could accomplish. My parents advised us to slow down and think before we got in over our heads or signed on any dotted lines. We figured, we were grown up and knew what we were doing. Afterall, I had just turned 30 years old - I was capable of knowing what starting your own business would entail. Now that I look back, I realize that I should have listened to my parents when they gave out advice on starting your own business. I would still have supported my husband 100% but we definitely would have done some things incredibly differently.
Starting your own business isn't just a decision that you make overnight. Trust me on that fact and don't let anyone tell you otherwise. You need to realize that starting your own business will affect your life in every way possible and could really dampen your personal financial situation greatly for the first few years. I never thought about the fact that starting your own business doesn't mean that the profits are going to start rolling in. In fact, even if your starting your own business starts off as a huge success, that doesn't mean that you can even touch your profits right away. There are so many more expenses involved in starting your own business than I would have ever guessed. While the profits were steadily moving in for us starting on the first day, our business loan and overextended credit needed to be taken care of first. We had many people tell us that starting your own business usually means that for the first several years, there really isn't a profit. We laughed at that thought and just assumed that people were trying to discourage us. It is now two years later and while our business is successful, it isn't always easy to pay yourself. The bills and loans need to be paid first.
When starting your own business, get some professional advice. Talk to someone who knows what starting your own business is about. Perhaps that would be a family member or a professional - someone can help you know all the ins and outs of starting your own business. It isn't as easy as it sounds. Starting your own business is terrifying and rewarding. Make sure that in starting your own business, you have an excellent business plan whether you're trying to borrow money or not. Having a business plan helps you figure out what your goals are when starting your own business. You should also know what amount of money will be needed when starting your own business. We underestimated greatly and ended up putting entirely too much on our personal credit cards. That's a terrible idea when starting your own business. Think ahead.