Are you adequately equipped financially to undertake the challenge of establishing a business enterprise?
The inception of any business venture necessitates a considerable amount of monetary investment. Fortunately, E-Commerce presents the opportunity to commence with a meager capital outlay, especially if the operation is small and can be conducted on a part-time basis. Several individuals have commenced E-Commerce enterprises with a relatively insignificant amount of financial resources at their disposal.
Nevertheless, as the scale of your enterprise expands, so will your financial demands. If you’re envisioning an E-Commerce enterprise with an extensive range of products that will necessitate your full-time attention, the initial costs are going to escalate drastically.
At this juncture, an entirely new set of factors must be taken into account. Have you stockpiled enough financial reserves to provide for you and your family until the business picks up and starts generating income? Certain business consultants recommend that you should be able to endure for a year without any income whatsoever, though that may be an impractical aim.
Nevertheless, you must contemplate what will happen if the business flounders completely. Do you have adequate resources to endure such an economic catastrophe?
Prior to devising a business strategy, it is critical to assess your financial situation meticulously. How much of your accessible resources are you willing to risk? Are you willing to assume personal responsibility for a business loan? What do you have to pledge as collateral? How much cash will you have set aside for unexpected expenses? If you lack sufficient funds to launch the enterprise solo, are you prepared to seek out partners? Are you gambling with your entire financial future by investing all your resources into the business?
Insufficient capitalization is the principal reason small businesses in the United States fail. Yet, several individuals, swayed by the entrepreneurial fervor, initiate business ventures on a shoestring budget, utterly unprepared to confront the inevitable financial setbacks. If you cannot commence your enterprise with a robust financial backing beneath you, you may be assuming a risk you cannot afford.
Are you and your kin primed to undertake the commitment of business ownership?
It’s a question that demands careful contemplation. Regardless of whether your family members are actively involved in the daily grind of the enterprise or not, the impact of ownership will reverberate throughout their lives. If you, as the proprietor, are the only one steering the ship, it’s probable that your loved ones will hardly see you at all. And if they’re accustomed to having your presence in the evenings and on weekends, this will undoubtedly give rise to a host of issues.
Your significant other might well take umbrage at the fact that they’ll have less time to relish dining out or catching a flick. Moreover, your absence could translate into a lot more responsibility at home for them — shuttling the children back and forth to their myriad of activities, helping with homework, grocery shopping, meal preparation, house cleaning, bill paying, and all the other sundry chores that come with domestic life.
Your offspring, too, will likely have to acclimate to a new normal. You might be unable to attend Little League games, dance recitals, school plays, or other hallmark childhood events that you would have otherwise cherished.
It’s also worth mentioning that there may be some financial adjustments necessary. If, like many other fledgling entrepreneurs, you’ll be running a tight ship for the first few years, it’s important for your family to be cognizant that certain luxuries may no longer be feasible.
Proactivity is key to averting any potential familial discord early on. Initiate a family discussion and apprise everyone of your intentions. Ensure they’re cognizant of the ramifications it’ll have on their daily lives and gauge their receptiveness. Their backing will go a long way towards making your own life more manageable, given the plethora of other stresses that accompany business ownership.
Conversely, if you envisage having your family members work alongside you in the business, you’ll need to approach it with the utmost circumspection. The interpersonal dynamics of family-run businesses can be rather volatile, hence why it’s vital that everyone gets along harmoniously.
A major issue that requires resolution is who the boss will be. Have the lines of authority been clearly demarcated? Will you and your partner be equal in ownership and operation of the enterprise? If so, are you able to work cooperatively and with mutual respect? If the two of you can’t even reach a consensus on which brand of soap to use, it might be challenging to successfully run the company as a team.