Are you considering the life of an Internet business
business owner? Well before your eyes gloss over with
dreams of endless free time and images of sitting on
your couch with your laptop clicking away earning you
thousands let me show you the reality of the situation.
A certain image has been promoted of the Internet
business owner. It’s often glorified as the great dream,
leaving your old job, with the long hours and annoying
boss in exchange for a flexible lifestyle that you are in
control of.
Well let me tell you – it’s all true!
Well sort of. It’s not by any means easy to do and you
lose many things you might have not realised you
valued in your old secure job. Let me point out the
things you lose that you might want to think about
before quitting your job.
1. Say good bye to a reliable and predictable income.
No job is 100% secure and there is a good argument
that being in control of your income via your own small
business is more secure than a job (you’re not at the
risk of downsizing etc) however it doesn’t feel like that,
especially when you start out. Even the oldest most
established business cannot be certain sales will keep
coming. From week to week you go up and down and
are never sure when or where your next sale will come
from. You can have great months and bad months and
the only constant is unpredictability. A steady pay
cheque feels a lot more secure than the ups and downs
of your own business.
2. Your business is your life.
When you leave work you leave work. Most small
business owners live and breath their business so they
don’t ever really leave work. Now I’ve got it pretty good
at the moment because I love what I do and I don’t
*have* to work much though I choose to work online a
lot. That being said I am trapped to checking my email
day in and day out, 24 hours a day, which is not ideal.
Chances are when you start your business you won’t be
working 9-5 or even 8-6. Early on you will most likely
carry the show and until you can justify hiring others
your hours will be long and you won’t have a weekend.
However if you are smart, set realistic expectations and
remember life is a balance, then running your own
business can definitely be less work than a normal job, if
you choose it to be.
3. You may never make real money until you sell your
business.
An unfortunate situation in many small businesses is
that the owner often doesn’t make much more than an
average salary, sometimes less. Now if you are
evaluating starting a small business based purely on
financial rewards then you might want to change your
assessment criteria. Many small business owners don’t
make a big windfall until they sell their business and
often by the time they are making the sale they will be
using the money for retirement. Although it is also true
that the only way to become really, really wealthy,
besides inheritance and lotto, is by starting your own
business.
The reality is that only a small percentage of businesses
make their owner really wealthy, the rest stumble along
earning an average wage. Of course many of those
business owners earning an average wage love their
lifestyle and only work as hard as they want to.
Running your own business has the greatest potential to
make you rich and may never make you rich, but here is
the important part, your own business is very likely to
make you a happier person if you keep your goals
simple and aim for lifestyle over riches. Anyone can get
rich but the contented people are rich without material
wealth.
4. There is no superannuation, paid leave or sick leave.
You may not think about superannuation very much but
it’s nice to know that when you have a job your
employer is planning for your future by contributing to
your superannuation. As a business owner your
employer is you and besides looking after your employee
superannuation you are also in charge of your own
retirement. This is an added worry that you don’t have
when you are working for another business.
Having time off is a concept not familiar to many
business owners. Being paid when you have time off is
like a dream for a business owner. There are some
common myths about business owners working 7 days
a week even when sick. If you do things right your
business should still function without you when you
need time off because of illness or even if you dare to
take a holiday. However that being said most business
owners find themselves as the most critical wheel in the
business system and if you remove that wheel things fall
apart. The important skill to learn is that the business
owner should work on the business, not in it, but that’s
easier said than done and especially early on when
funds are tight it’s very like you will be working in the
business. Don’t expect a paid holiday.
5. Workmates
There are no work mates for the solopreneur. You can
hire employees that may hopefully become friends but
the dynamic is always you the boss and them the
employees. If you have been used to working in a busy,
lively, talkative office full of peers that share the same
perspective as you, with Friday afternoon drinks, group
functions and shared time complaining about the boss
— you can kiss all this goodbye.
Okay, that’s not entirely true.
Things are definitely different from working in someone
else’s business but I’ve seen many small businesses
that have great working environments. The difference is
as the boss you have to create your own socialisation.
You can do this by creating an amazing business
culture where all employees are mates and the office is
like a party that happens to get work done too. Of if you
do not require employees then it’s your job to make
sure you don’t turn into a lonely home based business
bum. This means flexing your socialising muscles and
organising events with other business people (if that’s
whom you like to associate with), making sure you stay
actively involved in groups and clubs and that you leave
the home office now and then to interact with real live
people. Much like everything else with running your own
business, you are in charge of your social life too.
A day in the life of an Internet Business Entrepreneur.
Now you are familiar with what you lose when starting
your own business you can continue to read my next
article about a typical day in my life as an Internet
business entrepreneur.Here you can read about what
sort of lifestyle you can attain if you choose to start
your own business. I’m not saying mine is an ideal
lifestyle and there are things I’m working to change, but
my example does provide you with a working model of
the home based business owner.
All successful businesses keep detailed records. By keeping
detailed records, you'll know where the business stands
financially and what potential challenges you could be facing.
Just knowing this gives you time to create strategies to
overcome the obstacles that can prevent you from being
successful and growing your business.
Analyze Your Competition
Competition breeds the best results. To be successful, you
can't be afraid to study and learn from your competitors.
After all, they may be doing something right that you can
implement in your business to make more money.
Understand the Risks and Rewards
The key to being successful is taking calculated risks to help
your business grow. A good question to ask is "What's the
downside?" If you can answer this question, then you know
what the worst-case scenario is. This knowledge will allow
you to take the kinds of calculated risks that can generate
tremendous rewards for your business.
Be
Creative
Always be looking for ways to improve your business and to
make it stand out from the competition. Recognize that you
don't know everything and be open to new ideas and new
approaches to your business.
Stay Focused
The old saying that "Rome was not built in a day" applies
here. Just because you open a business doesn't mean that
you're going to immediately start making money. It takes
time to let people know who you are, so stay focused on
achieving your short-term goals and give the rest time to
come together on its own.
Prepare to Make Sacrifices
The lead-up to starting a business is hard work, but after you
open your doors, your work has just begun. In many cases,
you have to put in more time than you would if you were
working for someone else. In turn, you have to make
sacrifices, such as spending less time with family and friends
in order to be successful.
Provide Great Service
There are many successful businesses that forget that
providing great customer service is important. If you provide
better service for your customers, they'll be more inclined to
come to you the next time they need something instead of
going to your competition.
. Be Consistent
Consistency is key component to making money in business.
You have to consistently keep doing the things necessary to
be successful day in and day out. This will create long-term
positive habits that will help you make money over the long
term.
