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Starting your own business is a difficult endeavor at any time, but the current economic conditions make it even riskier. Too many people romanticize the idea of owning their own business. While there are many rewarding aspects of owning your own company, it is a difficult road to tread. Before you jump into business ownership, consider some of the negative aspects to make sure that you are comfortable with taking this risk.

Timing

There are arguments as to why a recession is a good time to start a business, but with the rising cost of gasoline, food, and other goods it can be an expensive time as well. Do you have the capital to purchase everything you will need to begin your business? What effect will the continued raising of prices have on your vision?

Uncertainty

While working for someone else, you can be sure of how much money you will be making each week. You know that your benefits are in place. The economy does bring a degree of uncertainty to these jobs, but for the most part our positions will still be there tomorrow. However, when you begin your own company there is no guarantee that you will make any money at all. Even after years running a business, there may be months you only break even because of factors outside your control. Do you have a partner who provides regular income, or some other means to support yourself if money is not coming in?

Sacrificing Personal Lives

A new business frequently requires the owner to work long hours, or even every day of the week. There may not be enough money yet to be secure hiring enough staff to cut your own hours. Are you willing to sacrifice much of your free time to devote to building your business? It can be even more difficult if you have children. Will there be enough hours in the day for you to spend time with both your company and your family? Many business owners report that they even sacrificed sleep in the early days of their company.

Paperwork

If you are not a fan of doing paperwork, you may want to reconsider owning your own company. Especially at the beginning of a new business, there will be countless forms to fill out. If you prefer to be the one "getting your hands dirty" and have no interest in the business aspects, think about why you want to cease working for someone else.

Human Resources

Many small business owners do their own payroll, hiring, firing, and other tasks that can be difficult or produce negative reactions. Are you good at building teamwork and camaraderie among employees? Do you have patience with handling the complaints of your team? Owners of new businesses often need to be jacks of all trades and may be called upon to handle even small problems with their employees.

Stress

How do you cope with stress? Inevitably, problems are going to arise and you are going to have to deal with them. The pressure of trying to find solutions can be too much for many people. You would also be responsible for providing a livelihood to your employees - their families are counting on you to run the business successfully. That can be an intimidating thought as well. Only a small percentage of business will succeed or last longer than two years. This risk can cause massive amounts of stress.
Think carefully about what you love to do before starting your own business. The larger your company grows, the more tasks will be delegated to your employees. If running a business is not what you love to do, you might be better off continuing to work for other companies. However if these negatives do not phase you, you might possess the entrepreneurial spirit.

Learn more about this author, K.A. Smith.
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