Starting your own business may seem like a fun fast way to make money but there are a few things you should consider first. An estimated seven out of ten new business’s fail within the first two years. Absolutely nothing is more crucial to survival than good advice given at the right time.
First you have to remember this is going to be a day in day out job. Even when your business is closed you will be working to make sure your business is prepared, clean, and ready for customers. Vacations and days off are rare or nonexistent in the first two to three years of owning a business. If you are not prepared for this it is important that you either find a manager or wait to start your business.
You will most definitely be short on money at one point or another. Do not expect your business to take off instantly and make you rich. This is not happening.
You will have to provide your own health insurance, retirement plan, and you can most definitely say goodbye to paid vacation. If you leave, you are probably going to have to close your business while you are gone. This is bad for business so I would not advise you doing it often.
Advice On Employees
Most employees do not want to work. Many of them will even go so far as to steal from you. This is not a pessimistic view of life, this is an established fact. You will have to monitor any employees in order to keep from loosing money.
Treat your employees well. Reward them for a job well done. Maybe give them a small bonus if you can afford it. This will pay off and you are less likely to have them quit when the going gets tough. To an employee getting busy can be tough. Well treated employees are more likely to be reliable.
Do your taxes ON TIME. If you do not know when they are do check before starting your business. Either online or from your local courthouse or city hall. It is important to know what you owe and how often. Not paying taxes, paying to late, or even not knowing what you owe can be detrimental.
Find out any health code’s, restrictions or possible violations of city law you may have. For instance how many fire extinguishers you will legally need and how often you should replace them. Without keeping up to date on small things like this your business may temporarily be shut down.
Keep adequate records. If owning a small business has taught me one thing it would be to keep records. Firmly organize all profit and expenses at the end of each day along with taxes. Hopefully you will make enough money that you can also set aside money for retirement and savings as well. While you probably won’t be able to do this in the first year or so it is important to remember not to forget it when you can afford it.
Often it is a safe bet to hire a professional to do your taxes (unless you plan on opening a business to do this). They will do it more quickly and with less stress and hassle to yourself for only a small fee. Also if you feel that your accounting and book keeping skills are less then they should be you should try handing the work over to an accountant while you take a short term in business school for this task.
When I started my business I followed this advice and I am proud to say that my restaurant has been open for three years with no sign of closing down in the foreseeable future. Business is good, my employees are steady and I have a good deal of return customers. Yes it has been hard but in my opinion well worth the trouble.