Today, technology affords anybody the ability to work from anywhere, which means the cost of entry to starting a new business is lower than ever. More and more people are opting out of the traditional 9-5 work day to seek their own independence and fortunes. So what makes people leave the safety of a traditional job and go out on their own?
There are three main reasons why most people start their own business
1. You want to apply your skills your way
When your skill level reaches a certain point, you start to question why you are making someone else wealthy. You think: I can make more money on my own.
However, it takes more than a particular skill and a way with people to start your own business. You need to have a mix of other skills such as administration, sales, and marketing. That’s because you need to find clients, service them and ensure your admin is operating efficiently.
2. You want greater flexibility
Whilst having more flexibility sounds great, the reality can be very different. Depending on your personal circumstances, financial situation and deadlines, setting your own hours is great in theory. But remember those other skills you need to learn? This takes real time, discipline and money, at least until you’re in a position to hire your first employee. Until that happens, you simply don’t have the time to do all those tasks in a 9-5 day. Suddenly, you’re working longer hours than the job you left behind! So even though greater flexibility is a myth, it’s still worth it because…
3. You want to be your own boss
This is the big one because there’s nobody else telling you what to do. There’s no more working to someone else’s schedule or for someone you don’t respect. Despite the reality checks we’ve presented above, being your own boss far outweighs any potential downsides.
The honeymoon period
Most people find that the first 6 months is amazing. You’re getting paid and other than IRD and ACC, all the money is yours. Then you get really busy and you have to hire somebody and get a taste of what it’s like being the boss. People are relying on you so you can’t drop the ball. Now you have to know employment law, and be fully structured in terms of working with employees, and knowing how to treat them.
Now you’ve got a real business, one where you can work on the business instead of working in it. One where you can take a break and everything ticks over nicely in your absence.
Hope is not a strategy
Winning in business takes strategic and financial planning, which is why you should start as you mean to go on. Most people underestimate how crucial planning is to a business’ success, especially in the first year when they are most vulnerable.
Money spent upfront on planning and strategy is money well spent. At OneHQ, we can help you to create a one page business plan, which includes a 5-year plan broken down to one year and a 90-day action plan. We can run quarterly accountability sessions to see what you’ve achieved and set the next 90-day action plan in motion. It’s like having a strategic and financial coach on your team.
We focus on the tax side too, including setting everything up correctly, making sure that you put money away for future taxes. 70% of companies go out of business in the second year because their owners didn’t fully comprehend how the tax system works. Year two is when your taxes start to come home to roost. So you need to set those funds aside.
We also place an emphasis on systems, processes and leveraging technology to save you time and money. Many people like paper-based systems and processes, however sooner or later technology, and the need for speed, catches up and the move to tech will only be harder and more costly.
Owning a business can be a rewarding experience when done the right way. OneHQ is here to set all your systems, processes and financials up correctly and help keep you on target. For an obligation-free chat with an Accounting expert, call OneHQ on 09 929 1670, email firstname.lastname@example.org, or read more here.