Sunday, November 27, 2016

Starting a Small Business: Unexpected Costs To Consider

Starting a Small Business: Unexpected Costs To Consider

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BIZ DAMAGE Starting a Small Business: Unexpected Costs To Consider

Starting a Small Business: Unexpected Costs To Consider

Entrepreneurs relish in the opportunity to own and operate their own businesses. They like being their own bosses and being in charge of their own schedules. However, owning and operating a business is not without its fair share of risks.

Many entrepreneurs report suffering from unique challenges that they could not have previously imagined before they started their businesses.When people prepare to open their own companies, they should be aware of these risks and what steps they can take to minimize the impact on their personal and professional lives.

Financial Risk

Of course, most people are acutely aware of the financial risk involved in opening and running their own business. Many people use their savings for start-up costs, as well as take out small business loans that they will have to pay back regardless of how successful their ventures are. Unfortunately, no business endeavor can escape some degree of financial risk. However, people can minimize the financial impact on their lives by taking out business interruption insurance and having some money left in their savings accounts. These precautions can help entrepreneurs survive in case their businesses do not do well.

Mental Burn-Out

Small business owners may not anticipate the significant mental burn-out from which many entrepreneurs suffer. While many of these individuals are hyped and eager in the first few months of their businesses’ lives, these people inevitably burn out at some point. They feel like they are exhausted and no longer can find the joy and excitement in being a small business owner.

People can avoid this by remembering to take at least one day off a week during the first year and also remember to spend time with loved ones or enjoying hobbies during their down time. Doing so can help entrepreneurs retain their mental clarity and enthusiasm for their businesses.

Physical Exhaustion

Many business owners also risk physical exhaustion from working too much. They often spend too many hours at their businesses and exert themselves more than they are accustomed to during the first year of their businesses’ lives. Some entrepreneurs develop high blood pressure, bad backs, and migraines because of this stress. People are reminded to work manageable hours, avoid physical work to which they are not accustomed, and see their doctor immediately if their symptoms become unbearable.

Emotional Distress

Because so much of their livelihoods are linked to their businesses’ survival, many entrepreneurs develop emotional problems that jeopardize their enjoyment of their business ownership. Many of these individuals become depressed, anxious, or extremely angry because of their business ownership. When these individuals notice or are alerted to their emotional distress, they should see their doctors, get a referral to a therapist, and take any anxiety or anti-depression medications prescribed to them.

Small business owners may at first only focus on the positive aspects of running their own businesses. However, people preparing for or just now undertaking such an entrepreneurial adventure should be mindful to the risks involved in small business ownership. Realizing these risks and knowing how to minimize or avoid their impacts can help people promote their best chances of entrepreneurial success.

Melanie Fleury has owned several small businesses and knows how draining it can be financially. She has found that learning to budget for the down times and having business interruption insurance are great ways to ensure that your business makes it through unexpected times of loss.

Photo Credit: http://www.flickr.com/photos/7377178@N02/2854599404/

 

 

 

 

 

 

 

 

 

 

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