Friday, February 25, 2011

Have You Ever Pondered The Unpleasant Part Of Forming A New Company?

By Frances Jerrold Todd

Before you start a business, you might want to read this. I won't claim there aren't good reasons to be your own boss. People don't mention the downsides though. I have been running various brands for over 8 years now, and have seen many of the ups and downs of being a company director. This is an honest view of running a company. Are you ready to find out about the bad sides of running a business?

For starters say goodbye to your social life. There are very few companies that will give you time. Normally the first 3 years of running any new business is immensely hard work. Even after that, if your business grows, you better get used to the idea of working very long hours. So before looking at a company formation, you really need to think long and hard about how the commitment will effect you. Apart from yourself, what will your wife or husband do with you not being around as much? Is it worth risking a marriage for a business. If you have kids, similarly, what is the point of working all hours god send, if you never have time to spend with your children? Having given up weekends for a period of my life, I know where I am coming from, from experience. If in doubt, stay with your career!

If you are used to a quiet, easy job, think again. If you run your own company you will be lumbered with immense responsibility. Everything from making sure the company is making enough money to pay bills and staff, to sorting the problem out when the brown stuff hits the fan. When things goes wrong, it will come down to you. Still sick of that easy job you have now?

Some companies are profitable from the start. Natural businessmen and women have the innate ability to make shed loads of cash with little effort. For the majority of us, we invest everything we have into a company and hope we one day might make a return. New businesses will take all your money and more. Even investing your money, time and effort doesn't guarantee a return. Worse still, you could end up walking away owing money.

Customer complaints has to be the hardest part of running your own business. Don't get me wrong, most customers are a joy to look after. The loud minority however, are a pain. Problematic customers can display all sorts of horrible character traits. There is the rude customer. Customers that deliberately dodge paying their bills. The impatient customers. The customer that makes my blood boil is the know-it-all one.

Do consider there are many circumstances beyond your control. How you deal with the many hurdles you will come across will dictate how successful you are. At the end of the day, there are many reasons why you should form a company. You can become very rich and successful. However as a final reminder, do consider most businesses do fail.

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