Owning a small business is a challenging task, yet it is the dream of millions of people. As someone who works with over a hundred potential small business owners each year, I can attest to their passion for entrepreneurship.
They all have different motivations for pursuing business ownership. Some of them possess the necessary qualities to be successful business owners, while others lack realistic expectations of what owning a business entails and how to prepare themselves to start and operate one.
Twenty-five years ago, my husband and I were in the same position as many of my clients when we decided to invest in a pizza franchise. Fortunately, we had close friends who were already part of the same franchise, and they mentored and guided us. They were honest and open with us, but there were still many lessons we had to learn on our own. These are some lessons we wish we had known before starting our business.
- Help is available. I was previously aware of SBA and SBA-guaranteed loans, but I did not know the support provided by Small Business Development Centers (SBDC). If we had approached an SBDC for help, we would have been better equipped, avoided some complications, and saved money.
- Obtaining a business loan is vastly different from obtaining a personal loan. Despite our excellent credit scores and references, my husband and I were surprised to be rejected for a business loan. We had sufficient funds to invest in our business, and obtaining personal loans for various purposes, like buying a house or car or making home improvements, had been easy. I never imagined we would be turned down for a business loan, but we were.
- When applying for a business loan, it is essential to choose the right bank. As a small business owner, there might be better options than a large national bank for you. Instead, local or regional banks are better suited for small businesses. A local banker is more likely to invest in your community and work with you if things do not go as planned.
- Getting established in a business takes longer than most people plan. You need adequate financial resources to support yourself during the startup and growth phases. You should have enough savings to cover your personal expenses for several months. This will allow you to reinvest your business revenue back into the business and promote its growth.
- Managing employees can be challenging, especially if you struggle with assertiveness or find it difficult to correct them when they make mistakes. However, your employees play a vital role in your business’s success. Excellent employees can help you grow your business, while poor employees can harm your business’s reputation. Therefore, it is crucial to assess employee performance accurately and take corrective action when necessary.
For the past 17 years, I have been working as a business consultant, helping clients achieve their business goals. Over the years, I have gathered a wealth of knowledge and expertise, not just from my own experiences as a business owner but also from the valuable insights I have gained from individuals who want to start their own businesses.
In the upcoming months, I plan to share some of these insights in my blog, which will give you a unique perspective on the challenges and opportunities involved in starting and running a small business. So, if you want to turn your dream of starting a business into a reality, I highly recommend checking out my blog for valuable tips and tricks to help you succeed.
Susan's Reflections 