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The Risks and Rewards of Going into Business for Yourself

The Risks and Rewards of Going into Business for Yourself

No one would deny that starting a new business is fraught with risks, but given the uncertainty involved why is it that the US sees over 500,000 new business starts every year? After launching and running several successful businesses, along with my fair share of duds, I’m confident in my explanation. Despite the potential pitfalls, entrepreneurs launch new ventures because the benefits can be equally if not more significant than the chances that something might go wrong.

Nonetheless, it’s up to everyone to decide whether the rewards outweigh the risks of going into business for yourself.

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Risks Associated with Starting a New Venture

Again, there numerous risks associated with starting a business. Here are five of the most common ones to consider before jumping in feet first.

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  1. Long and Erratic Hours. Whether you’re adequately funded and staffed or not, as a new business owner you can expect to put in many more hours than you would at a 9 to 5. In fact, you’ll probably work more hours than anyone else in your company and with good reason–entrepreneurs wear many hats. Plus, at the end of the day when all is said and done, as the business owner, the buck stops with you. So, the moment you start your new venture you’re signing up for long and often erratic hours.
  2. Many Ruffled Feathers. Again, long and unpredictable hours are often commonplace when starting a business. So, as you might imagine the hectic schedules that often come with entering a new venture often leaves little opportunity to cultivate what matters most–relationships. Hence, family and friends can often find themselves on the short end of the stick when you begin your new venture; therefore, it’s important to build breaks into your schedule because if you don’t force yourself to stop and smell the roses, it won’t happen.
  3. Unforeseen Changes in the Market Environment. Sometimes as entrepreneurs, we start businesses oblivious to massive shifts that are occurring all around us. Many of which could easily have the potential to negatively impact your new business concern. For example, I’ve seen so many sink tens of thousands into new storefronts only to be told by local authorities – after the fact – that upcoming zoning laws will require them to make expensive renovations to ‘stay within code’ or close their doors. Of course, you can sometimes offset these types of scenarios by performing your due diligence. Nonetheless, there are some changes that you just won’t see coming no matter how much planning and preparation you do, which is why you must factor a certain degree of the unknown into all that you do as a business owner.
  4. Lack of Management Experience. There is a notion that I’ve seen among many new entrepreneurs that if they hire good managers, the owner’s lack of management experience won’t matter. Unfortunately, as many find out this is often not the case because without the requisite experience, how will you be able to identify whether your managers are making mistakes. This inability to distinguish between wise or poor business decisions is why many business experts recommend that entrepreneurs take on management positions for someone else before striking out on their own.
  5. Potential for Financial Loss. Running a business requires careful budgeting and financial management. However, the problem with many entrepreneurs is that we tend to start businesses without understanding key management functions, like how to forecast profits and losses or create financial reports.

Our lack of financial know-how is often compounded by the fact that many new businesses start before they’ve had an opportunity to secure adequate funding. Hence, it’s not uncommon to see new business owners scrambling to find odd jobs to make ends meet. One way to avoid severe cash shortages is to set aside six to twelve months of personal expenses before starting your business.

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Rewards of Starting a New Business

While there are vast challenges that come with starting your own business, the rewards can often make up for it.

  1. The Opportunity to Grow through New Challenges. One of the best things about being an entrepreneur is that you get to break away from the monotony of punching a clock and doing the same job duties, day in and out. As a business owner, you’ll face new challenges and tasks on a regular basis. In fact, it is rare that you’ll do the same thing two days in a row! And the best part of performing new activities on a regular basis is that it gives you the opportunity to grow and learn, which will ultimately help you become a better business person.
  2. You Get to Surround Yourself with Great Folks. Let’s face it, as nice as it is to earn a steady paycheck, a 9 to 5 certainly has its drawbacks. Perhaps chief among them is having to work in an environment, not of your choosing. Doing so means that you have zero say in who you will work alongside. Hence, a common complaint among those who choose to work for someone else is that they can’t get along with their supervisor or other co-workers. However, when you’re the boss you get to choose the folks that you work with, and if it turns out that you hired someone that’s hard to get along with, you have the option of letting them go.
  3. Chart Your Own Course. The ability to determine the success or failure of your business is a big draw for many entrepreneurs. In fact, many business owners cite this as their sole reason for going into business. Given that entrepreneurship tends to attract those with a take charge mentality, the business arena is a great place to go if you enjoy making weighty decisions.
  4. A Flexible Schedule. Although we often associate entrepreneurship with long and unpredictable hours, there is another side to it. Running a new business sometimes gives you more flexibility than you’d have as a full-time employee. For example, many business owners have more time to travel and participate in volunteer than full-timers.
  5. Financial Potential. There are many different motivations for doing one thing or another. For instance, some are motivated by helping others, while others find motivation in facing new challenges. But whatever helps you wake up in the morning, it’s difficult to overlook the hefty financial rewards that could await those who can successfully manage business risks. As a business owner, you’re usually only one deal away from reaping huge financial dividends.

There you have it, the most common risks and rewards of starting a business. Learn how to mitigate them, and you’ll be well on your way to big things in the business arena. Here’s to entrepreneurial success!

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Last Updated on July 2, 2020

13 Common Life Problems And How To Fix Them

13 Common Life Problems And How To Fix Them

In life, we encounter problems as we breathe. But it doesn’t get to us until we feel a major impact, and that’s when it becomes a source of concern, hurt, or sorrow.

Life problems, depending on their magnitude, can be clogs in the wheel of progress, and we may not be able to attain our full potential if we don’t learn to place our problems in the proper perspectives as suggested in Robert Schuller’s Tough Times Never Last.

In this article, I have identified some common areas where you will most likely face problems as you make progress towards reaching your full life potential. I have also suggested practical approaches in handling, managing, and solving such problems.

1. Financial Crisis

We live in an uncertain world and a financial crisis may come at different stages of life. While you should always anticipate and prepare for a financial crisis, it may still catch you off guard or the magnitude may be far more than any preparation you have made over the years.

It could be that you lost your job or a major investment, got slammed with a lawsuit that threatens your savings, or have your livelihood be affected by a major disaster. So what do you do when you are in a financial mess?

Solution

To overcome a financial crisis, you will have to come to terms with the crisis. Acknowledge and accept the situation and begin recovery by setting your financial priorities right.

The next thing to do is to identify the cause of the crisis. If it’s due to a job loss, then your effort should be directed at getting a new job. If it is having multiple debts, look for ways to consolidate your debt so that your monthly debt repayment can be consolidated into one instead of being burdened with multiple payments.

You can also sell some of your assets to raise money to save the situation, or look for a better job if you are earning less at your current job. Don’t hesitate to ask for help from family and friends if you need to.

2. Health Crisis

Another major problem that might come up in your life is a health crisis. This is not far-fetched because our body systems work round-the-clock, even when we are sleeping. As a result of this, and if you don’t maintain routine health habits, health deterioration might begin to set in. Things might even get serious if you don’t attend to it early.

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Solution

When you are facing a major health crisis, the first thing to do is to consider lifestyle changes. This includes cutting down on junks, eating healthy diets, exercising, breathing fresh air, taking some sun, etc.

Apart from the lifestyle changes, you have to seek quality medical help and make sure you get different opinions about the state of your health so you can get the best affordable care.

3. Relationship, Marriage, and Family

There may not be anything as sweet as love and family life, but it can also be the source of pain for some. Human imperfections in a relationship can cause a major crisis in life. This has been a stumbling block to many on their path to fulfillment.

Solution

The best thing to do is to prevent relationship problems from happening, but if they do happen, you need to face reality and begin to take steps towards addressing them. Do your best to keep the lines of communication open as this can help in strengthening your struggling relationship. Talk about the challenges with your partner and look for common grounds.

You can also arrange to see a counselor together or read books that address the specific challenges you are facing. The worst thing you can do is to end a relationship and that’s only when you have exhausted all other options.

4. Workplace

The workplace is supposed to be a place where we dutifully render the services for which we’ve been hired.

However, it is not impossible to face animosity at work—dealing with toxic people who would rather not see any good in what you do. It might be caused by differences in background, attitudes, and unhealthy competition that can result in personal conflicts. This can create undue stress and reduce productivity.

Solution

Be as professional as possible when dealing with toxic people. Be kind and show understanding, and try to avoid personal confrontation.

You can even try to reach out to the persons and invite them over for a coffee and get to understand their worldview. This can help you to connect with them at their level so that you can avoid unnecessary stress for yourself.

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5. Career Pressure

In your quest to become more successful, you will likely encounter work-related pressure. Such can come when trying to stabilize your career or climb the career ladder. It can also come as a result of overworking and having no life. Career pressure is one of the most common life problems.

Sometimes, it may be that the promotion you are working hard to get is not coming or positions you are qualified for are being offered to others. The pressure can get more intense when you find that most of your colleagues are moving ahead of you.

Solution

Check to find if you have personal or attitudinal problems. Some attitudinal problems can put you at a disadvantaged end. It may be poor communication, poor personal grooming, or poor relationship and networking skills. If it is any of these problems, then work on improving yourself in those areas.

You can also observe your colleagues who are succeeding and take note of what they are doing differently.

6. Unfair Treatment

We are in a world where some people often think they have some privileges over others and may want to exercise this thinking and treat others unfairly. If you find yourself in an environment where you are being oppressed or treated badly because of your race, gender, or current status, this can make you feel really bad and can also affect your psyche and productivity.

Solution

There is the temptation to decry your treatment, defend yourself, and demand a change immediately, but you should really wait for the right opportunity to do that.

When the time is right, reach out directly to the person or authority involved, and make it private. Meanwhile, you should be factual about the instances of your unfair treatments. Don’t just say it that you are being treated badly; give several undeniable instances.

Once you’ve made your grievances known politely, keep being you. If things don’t change, you can cocoon yourself in that environment. If you have an option to leave, you can do so as well.

7. Emptiness and Boredom

When you are in a rut, everything becomes normal, dull, unproductive, and yet difficult to change. This can lead to feelings of emptiness and boredom. This may not seem like a serious life problem, but it can have a great impact on your life.

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Solution

To overcome boredom and emptiness, break out of your routines, and deliberately create a new experience for yourself. If you can’t leave your job to find a new one, start doing other things that reflect your true passion. Sometimes, the things that give us the needed drive in life are not our day jobs.

8. Confusion

Confusion is described as a change in mental status in which a person is not able to think with their usual level of clarity.[1]. It is inherent in forgetfulness and lack of concentration.

It can be caused by different things including medical and environmental factors. It can also be due to the experience of a loss, a heartbreak, or abuse.

Solution

Don’t allow the situation to deteriorate into something more serious. Try to snap out of whatever experiences you have had that is causing confusion. Seek medical help if necessary or talk to a psychologist.

9. Friendship Problems

We need friends in our lives to rob minds and hang out together and even help us when we run into trouble. But many people have found themselves in serious trouble as a result of the company of friends they keep. They’ve experienced jealousy, backstabbing, and betrayal of trust. Some friends have even used the information freely provided in times of friendship to betray trust.

Solution

Don’t open up on everything to friends. Keep some information only to yourself. If you notice that a friend is working against you, confront them with the truth. Limit your interaction with them or get rid of such toxic friends completely.

10. Haunting Past

We all have pasts, and we might have done some crazy stuff in the past before we begin to live a more civilized and decent life. But sometimes, the past comes back haunting. It’s even worse when life problems of the past haunt you back and become problems of the present.

It may be that what you have done is now striking your conscience, keeping you awake at night. Or someone who knows about it is trying to use it against you, and it is standing in the way of your progress.

Solution

Be true to yourself and forgive yourself. If it is an issue with another person, you can reach out to the person to settle with them. If it is a secret that is now being leaked out, own up to it, take responsibility, and move on.

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11. Safety and Security

You may find yourself in an environment where there have been unexplained murder, gun violence, police brutality, insurgencies, and other life-threatening situations. This can make you feel like you might be the next victim. What should you do in this situation?

Solution

Ensure that you watch where you go and keep your home secure. You can also get involved in a neighborhood community watch to collectively find solutions to the threat. If the situation persists, you can move to a more secure location.

12. Failure

Failure can bring disappointment and can also slow the pace of progress. But failure is also part of life, and we have to learn to deal with it. But what do you do when an experience of failure weighs you down?

Solution

You can read a book or biography to get inspired by other people’s success stories.

13. Grief

No one loves to grief but we can’t totally shield ourselves from it. The loss of a loved one is painful and, if not properly handled, can lead to an emotional breakdown.

Solution

Take your time to express emotions. You can also pen an emotional tribute to the individual. Writing can help us bring out the feelings that cannot be expressed otherwise, and it helps us breathe a sigh of relief.

You can also cope with your grief by helping them to realize some of their unfulfilled dreams or do something in their honor. Lastly, while you think about your loss, you will still have to move on, accepting the fact that life is transient.

The Bottom Line

Problems are what make life worth living. They help us adapt to become tougher as we adapt to different situations. Always remember that whatever problem you are facing has a solution or, at least, a manageable approach.

Therefore, never allow your challenges to stop you from fulfilling your true potentials in life.

More Tips to Help You Get Unstuck

Featured photo credit: Danka & Peter via unsplash.com

Reference

[1] Medicinet: Confusion: Symptoms & Signs

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