If you have experienced stress working at your job, just imagine the stress the owners of the company are experiencing, especially during these challenging times.
Often, people don’t realize the incredible amount of stress that small business owners undergo, and when it seems like they’re coming down on you, it’s really the result of the pressures coming down on them to do whatever it takes to keep their business operating.
Nonetheless, workers often ignore this fact and form a dislike of their bosses, justified or not. That’s just one of the many challenges that come with running your own business; and it’s a challenge that should be expected.
In fact, a recent study showed that approximately 57% employees said they quit their job because of their boss, which adds an additional layer of complexity for business owners.
Lots of people enter the entrepreneurial world either with the wrong expectations or seriously unrealistic ones. You’ll find countless publications on what to do to achieve success as a business owner, but rarely do you come across lists of the things to expect in business ownership, especially the negative side. To be successful, it’s critical to understand the good and the bad side of owning a business.
If you’re considering starting your own business, here are some challenges of business ownership you can expect to endure at some point during your entrepreneurial career.
Challenges to Expect When Running Your Business
Hiring the Right People
They say it’s hard to find good help these days, and it really is. One of the biggest challenges small business owners face is finding the right people that will be as passionate about your business as you are. In reality, it may be something you never fully achieve, simply because it’s your business, not your employees’ business.
Hiring new team members can come with a hefty price tag, so you want to be sure to get it right. We often don’t consider all the components that go into calculating the cost of hiring a new team member.
Think about the time it takes to train someone new, the money you spend on recruiting and the cost of turnover each time a team member leaves. It all adds up, so it’s best to do what you can to make your employees happy to keep them around.
When looking for people to hire for your business, you, of course, want to look for talented individuals who are knowledgeable and skilled in your industry niche, but you also have to consider things like how well they follow directions; how well they work with others; and if their values align with your company’s values as well.
You may not be able to find an employee that’s as passionate as you are about your business, but if you can at least find someone with the knowledge and skillset you’re looking for as well as a positive attitude, that’s an employee you can definitely work with and may have the potential to grow with your company.
When you become a business owner, a target magically appears on your back for people to sue you. And the reality of the matter is that having a lawsuit filed against you is almost inevitable at some point during the long existence of your business.
The important thing is to act as if there is a 100% chance your business could face a lawsuit at some point and do all you can to avoid risk and be prepared. Hire quality legal counsel, and be sure to take steps to limit your risk as much as possible.
Getting sued is definitely not something you want to talk about or even think about for that matter, but the reality is that it’s likely to happen to you at some point in your entrepreneurial career, whether it’s due to a supposed breach in your contract, a disgruntled customer, an accident, or something else, the best-case scenario would be that you have business insurance at the time of the incident, as well as strong legal counsel to represent you in the case you might have to go into litigation.
There are all kinds of business insurance policies that will protect your business against different types of litigation, but the key is to find the right policy or policies based on the type of business you have. Do your recent and select the right attorney as well. Make sure they understand your specific niche and industry.
If you have employees, you definitely want to make sure you have workers’ compensation insurance. If your business provides some type of service, you’ll want to make sure you have professional liability insurance for protection against negligence claims.
Making sure you have these things in place can put you in a much better position to avoid risk. While there really isn’t a way to eliminate risk completely, it’s best to do everything in your power to limit your risk as much as possible.
Any type of event that causes your business to stop operating would be considered a business interruption. Business interruptions can happen for any reason and last any amount of time. We are in the midst of a pandemic right now, in fact, that has put a halt to many business operations.
Natural disasters are another major cause of business interruption. Everything from tornadoes to floods. If the impact destroyed your store or your home office equipment, you no longer have the ability to run your business.
Business interruptions also happen due to issues in supply chain management. Your supply chain is your supplier but they’re a business first and foremost, which means that they are at the same risk of business interruptions as you.
If your supplier gets hit by a tornado, that means that your business will be delayed in receiving materials needed to operate your business. As a good rule of thumb, always have a few suppliers that can provide you the same services and materials as your primary supplier to prevent your business from experiencing the same delays.
Wrapping it Up
The key takeaway here is to be realistic in your considerations of business ownership. It definitely has many rewarding aspects, but it also has its challenges. As long as you are prepared for those challenges, you stand a solid chance of obtaining the success you seek.
You, of course, want to enjoy your entrepreneurial journey, but in order to enjoy the good, you have to think about the bad and the ugly parts of it, too. You need to have preventive measures in place so that when it does happen, you’ll know how to operate your business accordingly.