Guest Post by Michael Johnson who writes for www.smallbizio.com, a blog about small business tips and reviews.
Starting business is not for the faint of heart! You’re probably already aware of some of the obstacles you face. Here’s a look at 3 reasons NOT to start your own business—and how you can overcome them.
1. You Don’t Have Money to Start a Business
Any business you want to start will take some time before it earns enough income to support you full-time. Ideally, you should have enough money saved to cover about 6 months of personal expenses before you begin. This will give you some time to get your business established and generating the income you need. Starting with a service business that has low costs and quick initial revenue could be the answer to get started, even if you want to branch out into more of a product focused business.
You may be able to get a loan from a bank, or find investors who are willing to take a chance on your business. It would certainly be helpful to have a spouse or significant other who could earn enough to pay your bills while you are getting your business established. You could also consider starting your business on a part-time basis, or taking another part-time job until your own business is capable of providing a steady revenue stream.
2. You Can’t Get or Afford Health Insurance on Your Own
Health insurance is a key consideration for many people when selecting a job, and that concern only amplifies when starting a new business. One major illness or injury could even lead to financial disaster. If you are going to operate a business full time, it will be up to you to figure out how to get health insurance at a rate you can afford. With an illness or past medical history, getting health insurance on the open market can be very difficult.
Ideally, you have a spouse who can get health benefits on his or her group policy at work and cover you on their plan. This would provide you with a reasonable premium. In many cases you can join a professional organization or union that provides group health coverage to its self-employed members.
High-deductible plans provide more affordable premiums. You can also set up a tax-deductible Health Savings Account (HSA) that can help you pay your deductibles and other out-of-pocket medical costs.
3. You Have No Patience for Record Keeping Needed in a Business
You may be the type who just wants to go out there and DO IT and forget about the extra details. However, running a business takes some discipline in bookkeeping and record keeping in addition to all of the actual “work” you’ll be doing. At the very least, you’ll need to keep good records for tax purposes. Keep track of all your transactions, including earnings and expenses. Having a good record-keeping system will make it easier to sell your business should you want to do so in the future.
If you just can’t stand keeping records, you could look for software to help you manage your bookkeeping and record keeping tasks. You could also consider having a partner or friend with good organizational skills handle these tasks for you.