Seven Bad Reasons For Opening A Small Business

Posted by Linda P. Morton

May 14, 2008

by Linda P. Morton

So you’re thinking about opening a small business. Why?

The reason that you want to open your own business is important because if you do it for the wrong reason, you may be disappointed and waste lots of time and money before you fail.

If the reasons that you want to open your own business is listed below, you should reconsider.

Opening A Small Business: Wrong Reason 1 - You Hate Your Job

Not liking your job is not a good reason for opening a small business. It’s much easier and less expensive to just find another job more to your liking.

Remember that there are many aspects to running a business. Some you may like. Others you may hate, but you have to do them or hire someone else to. Do you have enough start-up funds to pay employee salaries? If not you’re going to be doing jobs that you don’t like anyway.

So not liking your job is a bad reason for opening a small business.

Opening A Small Business: Erroneous Reason 2 - You Don’t Want Anyone Bossing You

You’ll have people bossing you even in your own business.

The people that loan you money will demand certain procedures to assure return on investment. Your clients or customers will require specific accommodations or quit doing business with you. You personnel will want considerations.

So if it’s complete autonomy that you’re wanting, you should consider a hobby rather than a business.

Opening A Small Business: Bad Reason 3 - You Want More Free Time

Don’t kid yourself. You will work more in your own business than you ever have on a job. That is if you want your business to succeed.

Unless you are prepared to give 50 to 60 hours per week to your business, you’re wasting your time opening a small business.

Opening A Small Business: Erroneous Reason 4 - You Want To Increase Your Income

Any increase in your income from opening a small business is going to be a long time coming. It may take years before your business does anything but take money.

To build a business, you have to put everything the business makes back into the business for at least the first few years. So you need to expect less personal income through those years.

So if you have an immediate need to make more money, get a second job instead of opening a small business.

Opening A Small Business: Bad Reason 5 - You Have A Good Idea For A Product

Having a good idea for a product is not reason enough for opening a small business. You have to know that there is a market for the product already established. Having to take time to educate people about their need for a product can take more time than your business can survive without sales.

You also need to consider if you can keep others from copying your product and stealing your sales just as you finally get people convinced that they need your product.

So just having a good product idea is not enough to risk opening a small business.

Opening A Small Business: Bad Reason 6 - You Have Some Money To Invest

Yes, a new business requires money and by opening a small business, you are investing in yourself. But is that a good gamble.

Often you can make more, while keeping your job and income, by investing your money in the stock market. Your risk is less because the people running publicly-held businesses are far more experienced and, thus, more likely to make a profit than you are.

Just because you have some money to invest is not a good reason for opening a small business.

Opening A Small Business: Wrong Reason 7 - You’ve Read That It’s Easy

Many people will lie to you in hopes that you will make money for them. They don’t care if your business succeeds as long as they get plenty of your money while you’re trying. Don’t believe them because opening a small business and making it a success is not easy.

If it were so easy, everyone would own a successful small business. The truth is that many people try, but few succeed. Building a small business into a profitable one is probably the hardest thing you will ever do.

If you aren’t willing to work hard on your business, don’t bother even starting it

Synthesis

Don’t consider opening a small business for one of these erroneous reasons, or you will regret it.

Still, there are legitimate reasons for opening a small business. If you are motivated because you know a service or product will meet an unmet need for a target market, and the people in that market want to meet that need enough to part with your money, then you may want to think more about opening a small business. But don’t forget you have to be able to market to the people, or your small business won’t be a success.

About the Author:

You can get a more on Marketing Your Small Business, get my free get my free DVD. To discover the secret to selecting the right target market for your business, see Market Segmentation

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