Before explaining the bad side to running a business, let us not forget the many positives to be had out of having your own company. If you are starting now, in a few years from now you can be relaxing in a luxury yacht, sipping champagne. OK, that is perhaps a bit far fetched, but you get the idea. A business can be financially rewarding and offer you the lifestyle most people can only dream of. Company formations aren't all hard work!
The biggest risk with running a company is financially. Significant debt can be accumulated through mis-management of your finances. There are several ways to end up in this predicament. For starters, watch your bills. You must as a business owner, negotiate the very best rates. Alternatively, employ a buyer that is skilled in the art of negotiation. On the subject of employees, try and not overpay, as a big wage bill can cripple you. From experience, this is what I have found with all my UK company formations.
The entrepreneur in us, is far more prominant in some people who are able to do very little and earn very much. Not many people are able to do this though. In fact, most business owners will be hands on for many years to come, working incredibly long unsociable hours. From personal experience, it is always worth setting up a business with the intention that the business works for you, not you working for the business. If for the next three to five years you are working more than eight hours a day, the business isn't working for you.
Most normal, sane people find difficult customers difficult to deal with. Who really wants to be talking to a snotty, self-righteous person that is in the wrong? All this time, you need to remain focus and professional. Either develop a very thick skin, fast, or employ someone else to handle customer service.
If you run a business, be prepared for plenty of red-tape and bureaucracy. You'll have to handle everything from health and safety issues to making sure you put up no smoking signs. The many rules and regulations associated with running a company can really get in the way of actually making money and providing a good service.
Running a business will sap all the energy out of you. Firstly the stress of setting all your systems and ensuring they run perfectly. Then there is the financial drain. Unless you have a service that costs nothing but time to provide, you will need to invest your own money in the business or borrow from the bank. It isn't inconveiveable that you can lose everything.
Never be put off by running a business though. Listing five pitfalls was hard work. It'd be testing to find anymore bad sides. The rewards can be massive, and you can mould your business around your life. If company formations is your thing, then why not go ahead and take the plunge?
The biggest risk with running a company is financially. Significant debt can be accumulated through mis-management of your finances. There are several ways to end up in this predicament. For starters, watch your bills. You must as a business owner, negotiate the very best rates. Alternatively, employ a buyer that is skilled in the art of negotiation. On the subject of employees, try and not overpay, as a big wage bill can cripple you. From experience, this is what I have found with all my UK company formations.
The entrepreneur in us, is far more prominant in some people who are able to do very little and earn very much. Not many people are able to do this though. In fact, most business owners will be hands on for many years to come, working incredibly long unsociable hours. From personal experience, it is always worth setting up a business with the intention that the business works for you, not you working for the business. If for the next three to five years you are working more than eight hours a day, the business isn't working for you.
Most normal, sane people find difficult customers difficult to deal with. Who really wants to be talking to a snotty, self-righteous person that is in the wrong? All this time, you need to remain focus and professional. Either develop a very thick skin, fast, or employ someone else to handle customer service.
If you run a business, be prepared for plenty of red-tape and bureaucracy. You'll have to handle everything from health and safety issues to making sure you put up no smoking signs. The many rules and regulations associated with running a company can really get in the way of actually making money and providing a good service.
Running a business will sap all the energy out of you. Firstly the stress of setting all your systems and ensuring they run perfectly. Then there is the financial drain. Unless you have a service that costs nothing but time to provide, you will need to invest your own money in the business or borrow from the bank. It isn't inconveiveable that you can lose everything.
Never be put off by running a business though. Listing five pitfalls was hard work. It'd be testing to find anymore bad sides. The rewards can be massive, and you can mould your business around your life. If company formations is your thing, then why not go ahead and take the plunge?
About the Author:
For guidence with company formations, contact Optimum Formations. Optimum Formations are experts in UK company formations.
No comments:
Post a Comment