Consider The Dark Side of Being A New Business Owner

Image of fountaijn pen and to do list illustating the dark side of being a new business ownerIs the Force With You in Your New Venture?

Do you see yourself as a business Jedi, ready to unleash your entrepreneurial force on the world? Are you prepared to encounter the dark side of being a new business owner?

As Yoda counsels, “Do… or do not. There is no try”. In other words, it will all be on you to successfully launch your new business and guide it through the virtual galaxy.

Search your feelings, Jedi. Have you been so excited you haven’t looked at all aspects of running your own business?

That’s no moon. It’s a Space Station!

There are plenty of online business coaches and communities that will exhort you to follow your dream, shoot for the moon, have faith in yourself and to go ahead and jump into your new business. They tell you not to get stuck on trying to make everything perfect and figure it out as you go. Sound familiar?

Usually these sites have testimonials about how they launched a successful business in weeks, and immediately began to multiply their income.

You are particularly vulnerable to the shiny lure of instant gratification business coaching if you are already restless or unhappy with your day job.

You are particularly vulnerable to the shiny lure of instant gratification business coaching if you are already restless or unhappy with your day job.

According to the Small Business Administration, the dark fact is, on average less than half of new business ventures survive to five years.

You ready to captain this ship? Start here! Take charge now and figure out your finances and business obligations before you jettison your day job so you will be one of the long-term winners!

Ready To Run A New Business Are You?

You need provisions for this trip, my Jedi friend. And there is no room for excess baggage.

Get out of debt

It you have consumer debts, car payments or other obligations outside your basic living expenses, try to get them paid off before you quit your 9-5 job. And for star’s sake, don’t add anymore! You will need the flexibility to handle unexpected business expenses or income dips.

Build an Emergency Fund

Have at least six months’ worth of your household living expenses in savings. A year’s worth is better. That’s household – not just your contribution if you have a spouse or partner that works. Stuff happens, and need to be able to cover your bills. Don’t plan to rely on credit cards.

Track Your New Business Income

Start your new business as a side hustle. Yes, you will basically be working two jobs until you get established. “A Jedi must have the deepest commitment, the most serious mind!” Keep track of your net income. Set realistic goals and prove to yourself that your business income is sustainable. For example, set the goal that you can quit your day job (or cut back to part-time) after your net income stays above $xxxxx for six months. Make sure your target income will cover all your expenses.

Tell Jabba I’ve Got His Money

Are you disciplined and organized enough to keep up with the administrative side of running your own being a new business owner? Have you educated yourself and have a system in place? Or do you have some vague notion that you’ll hire someone to take care of the numbers stuff but have no idea who, or how much it will cost you?

This information is primarily for new business owners based in the United States, but the administrative categories apply to businesses anywhere.

As an entrepreneur in the United States, you are considered self-employed by the Internal Revenue Service. You will be responsible for paying your income taxes quarterly and will also be responsible for paying a Self-Employment tax that covers Social Security and Medicare. You must keep careful records and report your income accurately.

If your day job provided your health insurance coverage, when you are flying solo you will be responsible for acquiring a replacement policy and paying the monthly premiums without fail. In the U.S. you may be subject to penalties if you fail to arrange for qualified healthcare coverage.

A Tremor in the Force

Do you have a workflow in place for running your new business?

Hopefully you are serious enough about being a new business owner that your idea of being self-employed is not limited to wearing pajama pants and only working when inspiration hits you, but that doesn’t mean you have to lock yourself in to a standard 40 hour work week.

You will need a planned workflow and the discipline to execute it consistently.

To be a successful business that survives beyond the first year or two, plan specific blocks of time for marketing, administrative tasks, responding to client inquiries, creating and delivering your goods or services, and future product development.

Be prepared for social isolation. You may be looking forward to being able to work in peace and quiet without distractions. You may also be surprised how much you miss having real people to talk to, to complain to, and to share a laugh with. Don’t burn your bridges. Take steps to maintain your work network. Plan to meet folks for lunch occasionally.

Keep in mind that when you are self-employed if your computer crashes or your supply order doesn’t get delivered on time, you are the one who will have to identify the problem, get it fixed, and manage any repercussions. Are you mentally equipped for crisis management?

Your Shield Is Up

Now that you are aware of the dark side of being an entrepreneur, you won’t be fooled into blasting off before your ship is loaded and fully functional! You will be a successful business owner… and a positive force in the business community!

Are you launching a new business? What have you done to defeat the dark side? Are you a current business owner with suggestions for new entrepreneurs? Please share your thoughts in the comments section!

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