Starting a business from scratch is quite a challenge for most people, knowing that some doesn’t have enough experience, and others might still not have any valuable resources such as business tools, and connections to sustain their venture.
One will experience a lot of trials, errors, doubts, and even bankruptcies just to be successful with the craft.
Most small businesses are sole proprietorships or partnerships.
If you choose to run it yourself, be ready to have a strong emotional coping to risk everything just to get on top, because the reality is running a business isn’t going to be successful if you do everything completely alone.
Most small businesses are run solely or by partnerships.
If you to choose to be your own boss, it takes a lot of risk taking, strong emotional management, valuable resources such as business tools and connections to sustain your entrepreneurial objectives.
The reality is running a business isn’t going to be successful if you do everything completely alone.
It requires you to have full commitment, face uncertainties, work longer hours, catch deadlines, risk money, and be considered responsible for any issues that may occur including product liability, employee disagreements, and regulatory requirements.
The disadvantages of one-person business
It’s good to run your own business without the help of other people, it’s a challenge and an opportunity to learn but you need to make sure if it fits with your lifestyle and financial situation. It’s a matter of gamble.
You need to risk everything just to get your way to the top. Remember you are the only one managing with the operations, sales targets, marketing campaigns, etc.
Take caution: working for yourself isn’t for everyone.
According to Marla Tabaka, a business coach who writes The Successful Soloist blog for Inc.com:
“Just because you’re a great technician at what you do doesn’t mean you’ll automatically be a great entrepreneur, too.” … “They’re two totally different hats to wear.”
The stress that comes with having full responsibility for everything related to your business is just one of the disadvantages of sole proprietorship.
Below are other reasons why a sole run business is crucial.
- It involves financial risk.
In starting your business, you require a certain amount of capital to start. For many people, their initial source of funding comes from bank loans, personal bank accounts, or even friends and family.
Depending what type of business you’re in, it can be easy to go into debt and empty your savings due to startup costs.
On the first few years of your business, you might not bring in as much revenue as you’d like, plus you have to look for means to get your business known to customers and gain good reputation.
Any profit you make go toward paying other costs, thus a steady paycheck is not yet in the picture.
- It’s uncertain.
Though your business is successful at the very start, external factors could affect its growth like economic downturns, shifts in consumer demand, and new competitors entering the market. Potential changes in the business are generally uncertain, you’ll never anticipate it.
Consider this insight from Tabaka:
“A lot of people start with a kitchen table idea… …it’s a great idea you come up with your cousin at dinner. But then the business booms, and your growth gets out of control. You need a plan.”
- It requires you to work longer hours.
As you having the full responsibility, you need to keep things going. From integrating business planning metrics, planning day-to-day operations, banking, purchasing and up to advertising, you should put everything together. The commitment you poured could place a strain on family and friends, adding an extra pound of stress in launching your new business venture.
As what Terri Lonier, president and founder of Working Solo, a New Paltz, New York-based business strategy consultancy, and author of Working Solo: The Real Guide to Freedom and Financial Success with Your Own Business said, “At the beginning, it’s really up to you to determine how the business functions, so be prepared for a migraine or two. ‘There’s a lot of scrambling. … It’s like a lot of ducks paddling underneath the water line.”
- You are betting on a crucial deadline.
When starting up, it’s a usual scenario to keep up with strict timelines, product launches, and milestone goals. Your finances are fragile. You need to let investors see the progress you attained from the money they’ve invested to your business. So you must keep on running and running and running.
- There are other risks to watch out for.
Apart from financial risks, consider things like product liability, employee disagreements, and regulatory requirements. A simple defective product, an issue complaint of an employee or an insurance demand anomaly could affect your business’s image leading you to your untimely collapse.
Finding the alternative
Knowing the possible contingencies cited under having a solo business career, it’s still a good venture if you are still going to pursue solopreneurship. Though it is hard, demanding, and draining, you are the master of your time and the captain of your own cruise. In the midst of your great undertaking you can always seek the help of an IT solutions specialist.
In having an IT solutions specialist, they can help you employ efficient platforms like task management system, accounting software, and ticketing management system. These are complexly operations-oriented and productive at a reasonable cost.
Small business can be under sole proprietorship or by partnership. Others who are frail-hearted may usually prefer partnership, but for those who are seeking success right at their own means taking the path of one-person business.
Typically the real scenario in venturing the business industry “alone” isn’t going to be successful as you may think.
You need to understand that it requires you to have full commitment, face uncertainties, work longer hours, catch deadlines, risk money, and be considered responsible for any issues that may occur relating to product liability, employee disagreements, and regulatory requirements.
Even though these things may disappoint you in getting further, you might consider the help of an IT solutions specialist. Surprisingly, they can help you employ useful applications for your solo administrative work such as management system, accounting software, and ticketing management system. It is generally operations-oriented, productive, and cost-effective.
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