Are you among the millions of Americans who dream of owning a business? People want to own their own business for many reasons, and the most common one I encounter is: “I want to be my own boss.”
Business ownership has many advantages, including running the business how you want to run it and calling the shots. If you are a successful business owner, you will likely earn much more than you could as an employee. Many people, however, do not succeed as business owners. My job as a small business consultant is to equip people with the tools to help them succeed.
Here are some factors to consider when evaluating whether business ownership suits you.
- It is hard work. After many years, you may achieve a level of success that allows you to depend on your employees to run the business when you take a vacation. However, your work situation will likely differ significantly in the early years. You may work 40 – 60 hours in your business and then another 20 or more hours to pay the bills, make the work schedule, invoice clients, complete the payroll, promote the business through marketing and networking, and plan for the company’s future.
- It requires good organizational skills. Business owners typically wear all the “hats” in the first few years of the business. You will be the manager, salesman, accountant, and marketer. You will take inventory, order supplies and merchandise, stock the shelves, write proposals, take out the garbage, and clean the bathrooms. You must be well organized to accomplish all these tasks and not let things fall through the cracks.
- Family support is essential. Whether your spouse works with you in the business or has an outside job to generate a steady income, you need to work as a team. If your spouse disagrees that starting a business is a good idea, they may resent you and the business. It would be best if you were honest with your family about the commitment of time and financial resources that will be involved. If your family does not support your decision, you should seriously reconsider business ownership at this time.
- Establish good credit before you take the business ownership plunge. Good credit will be required if you need financing from a commercial lender or an investor. Suppliers will also want you to have good credit before they sell to you. If your credit is poor, you may be able to purchase inventory and supplies; however, you will have to pay for orders in full before they are shipped. If you seek to be a government contractor, you should know that government buyers will only buy goods and services from businesses with a history of good credit or whose owners have excellent credit.
- Save money to invest and work in the industry before you start a business. A lender will consider you a reasonable risk if (1) you have a variety of experience in the industry, (2) if you have a significant amount of your own money to invest—typically 20 percent of the start-up costs, and (3) if they believe you will be successful.
- Pray diligently and seek God’s will. You should not start a business without praying and seeking God’s will. If the company you are considering is God’s will for your life, He will give you peace and open doors of opportunity. For instance, the perfect retail space may become available for rent at an affordable rate, or a colleague who knows your skills may offer you an opportunity to work on a government contract. God has a perfect plan for you, and He will reveal it to you if you ask Him. “For I know the thoughts that I think toward you, says the Lord, thoughts of peace and not of evil, to give you a future and a hope.” Jeremiah 29:11. God loves you more than you can comprehend and wants to give you good things.
Business ownership can be a tremendous financial and emotional blessing if you are cut out for business ownership and choose a business that is right for you.
God’s word has much to say about employers, finances, and managing money in ways that reduce stress and honor God. To learn more, my Bible study Honoring God with Your Money is a great resource.
Susan's Reflections 
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