Becoming Your Own Boss

[moneymaven]

For those of you who are entrepreneurs, what advise would you give someone who wants to be their own boss? What would do over if you knew then what you know now?

[qofcc]

Make sure you really want to be responsible for every little detail of the business, not just enjoy the perks. You might find that you just want a different job, not a business.

When comparing against traditional employment, don't forget to add in the cost of everything the employer provides when calculating your break even point.

Have a plan, and a backup plan, and an exit strategy.

Remember that the business belongs to you, it does not define you. Give it your all (effort) to make it work, but don't put yourself in a position where you loose everything if it fails.

Focus on what you do best and know what to outsource. Don't get bogged down in the details and loose sight of the big picture.

[bookcrazychick]

Keep in mind that starting a business because you love the JOB you are doing now will a lot of times result in you performing work you are unable/unwilling to do. Just because you like making widgets doesn't mean that making widgets is all you will be doing if you go into business for yourself. Unless you have unlimted funds to hire a receptionist, bookkeeper/CPA, attorney, HR person, IT specialist, remember YOU will be doing these functions yourself.

I have been in public accounting for 25 years and one of the main reasons I see new companies fail is due to this fact. I have a brand new client who started his own company. He was recommended to us by another client. He was "too busy" to come meet with us so all of my contact with him has been through email. When his first payroll tax deposit became due this month (around 10K) and I informed him of it I thought he was going to have a heart attack. His first question to me was "What is a federal tax deposit?" Really??? You started your own company with NO KNOWLEDGE of payroll and/or related taxes?

I have hundreds of these same kind of stories. My mantra has always been "Just because you CAN start your own business, doesn't mean you SHOULD.

Wow, I just revisited this thread and reread my post. I come across as really negative! LOL I didn't mean to be. I've been my own boss for 11 years and love it. I think I would have a very hard time working a regular job with a boss and everything. But as with all things there is good and bad to be being self employed. I just wish more people would do their due diligence before hanging out a shingle.

[IPAfan]

Find a business which doesn't require a lot of capital to start up and where you can earn a high % return on the money you do put into the business. A service type business might be a good start.

Don't confuse this with not putting money into your business. You should find a business that earns a high return on extra invested capital, but that can be run on a shoe string in the worst of times.

All new entrepreneurs are short on cash. Most businesses fail because they don't have enough capital. That's why it's important to focus on something that doesn't take a lot of money to start. Then you can invest by advertising your service or product in every way possible.

I think high return on capital; low capital requirements to start; and ability to get good advertising returns are huge factors in the success of a new business without much capital.