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Common Pitfalls to Avoid When Owning Your Own Business

Aug 26, 2008
There are many benefits of owning your own business. Greater pay, no boss, flexible hours, and more control are all appealing aspects of owning your own business. However, many are distracted by the thought of those advantages and sometimes underestimate the difficulties and hardships when owning your own business.

Anyone can take money down to their local government office and pay to obtain a vendors license. Then it is official, you own your own business, you work from home now, and you are on your way to financial freedom. Unfortunately, nothing is ever that simple. There are many downfalls to owning your own business. With enough training and a good marketing plan to help deter some of those potential disasters, owning your own business can be successful, enjoyable, and profitable.

The first downfall to owning your own business is people often underestimate how much time and dedication will be needed to successfully start and maintain your company. While people may only expect to work an eight our shift, dedicated business owners will find themselves working long past their expected clock out time. There are small business accounting decisions, management decisions, and inventory monitoring that will all need to be handled even after putting in a hard day's work. Most companies do not start financially set, complete with staff, accountants, and shift managers that can perform inventory counts. Most of those pressures will fall directly on your shoulders when you own your own business. Be prepared for long hours, stressful situations and a lot of hard work.

Another downfall to watch out for when owning your own business is the market. Obviously, the economy is facing difficult times and small businesses are really feeling the pinch from the hardships. An accurate marketing plan is an effective tool when running your own business. It should be designed to anticipate and deal with economic changes, both good and bad. The market changes so often and many times independent business owners find their products were quickly outdated or outsold by competitors. Be wary of creating a personal business based merely on a marketing trend or fad. As quickly as it is started, it can vanish leaving you will outstanding debt payments, not to mention loss of profits, and excess useless stock. Advertising is another aspect that a proper marketing plan should address. All too often, business owners are spending too much money on high-tech advertisement plans, when for some instances, simple flyers and public notices will work just as well.

It is always wise to expand on your inventory when you own your own business. Consider it a safety net, but is makes perfect sense to carry other smaller, inexpensive items that relate to your main product line. That is why many retailers that specialize in women's clothing, also carry purses, jewelry, and other coordinating products. If every item costs $50 in your store, you probably will not bring in much business. More conveniently priced items, guarantee an everyday sale, which will prove necessary to the longevity of your business.

Effective business management may be difficult and stressful at first, but with proper training and a thorough business and marketing plan, anyone can achieve success through owning their own business. It is important to not feel discouraged if your efforts do not payoff immediately, with time and patience all things are possible. Now that you are aware of the many common downfalls to owning your own business, you will know what to avoid and can actually take pleasures in the benefits of owning your own business.
About the Author
Ron Subs works with Omnibonwealth as a public relations consultant. Omnibonwealth features the Passport to Prosperity system that teaches people the benefits of owning their own business. More information about Omniwealth can be found at http://www.omnibonwealth.com/
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