Owning your own business can be an extremely rewarding experience. Increased income potential and schedule flexibility is a great thing to have in your life. There are, however, some challenges involved in most cases. The hardest part for me, as a realtor, has been financial fluctuation. There is a lack of real security in many sole proprietorships. With no established and financially solid company to depend on, it can get a bit scary at times.

For example, as most people are aware, the current real estate market is going through some major changes. The market is not quite what it was ten years ago and this has affected my income tremendously. Because I am fairly new to the business, I had not had the chance to garner a large nest egg before things started to get sketchy. My husband has a nine to five job for a major company, so there is a regular paycheck coming into our household, but for those who depend solely on their own business profit, this fluctuation can be tricky to deal with.

Tax time is another thing that can present a challenge for the small business owner. Keeping receipts is a must! Anything that is even questionable to you, file it away! Your tax professional may be able to use it as a write-off for you in ways you may never have thought of. Keeping these receipts organized and available in readable condition will also be a great help when the countdown to April 15 begins. There can also be a problem when you get the final verdict if you have not been prudent about putting away a percentage of your income for tax time. Doing quarterly taxes will help to make the wound a little easier to look at. The temptation can be great to spend away and figure you'll deal with tax time when it comes, but you will probably regret it.

Figuring out how to best invest back into your company can also be confusing if you are going at it without a professional advisor. Do you spend your profit (after your own paycheck) on advertising? How much, where, and what is the result of your chosen ad space? Do you spend on customer/client gifts or rewards? Is this bringing you continued loyalty and advancing your customer base? These are questions you will want to periodically ask and assess where your money is going and how it is affecting your potential future earning ability.

There are definitely challenges involved in taking on a business venture of your own. It can be difficult until you get going with a good solid customer base and a fairly steady income flow, but you may find that the benefits far outweigh the risks. New-found freedom is often a scary thing, but it is a great way to learn and grow as an individual. After all, what's life without a little bit of challenge?

Learn more about this author, Melissa J. Clark.
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