The Dark Side Of Small Business Ownership
Every coin has two sides: Check the risks and negative aspects of a small business and the dangerous part of solopreneurship.
Hey friends :)
I recently realized that I've never reported anything about the negative sides of solopreneurship. The other side of the coin- and for transparency I feel I should also report the not so cool stuff of business life.
Small business ownership may seem like a perfect dream. The idea of being your own boss, pursuing your passion, and building something from nothing can be incredibly appealing. However, there's a darker side to this entrepreneurial journey that often goes unspoken. Unfortunately.
It's time to check out the dark side of business. Let's get into it and start with the list of possible negative aspects of starting a business.
The long list of problems:
- Burnout
- Financial issues
- Heavy work-load
- Staff problems
- Being lonely
- Creativity block
- Jumping between job-roles
- Time-Management
- Lack of experience and knowledge
When starting a small business next to your 9-5 job it can get nasty:
Especially with little experience, the lack of time and other life duties it can be super overwhelming. Many people get demotivated and can't handle the pressure to manage so much. They can't even imagine it and don't even start their own journey.
I can't emphasize the importance of having a real purpose. If money is the only drive then it will be super difficult to overcome hard times.
You need to love what you do.
If you work from all of your heart for your dream, then you will handle way more obstacles and setbacks, than if your purpose is money and short term ego based motivation.
Don't believe everything you see
Especially on social media you mostly see success stories and that's unfortunately only the peak of the iceberg.
You don't see the desperation.
You don't see the lonliness.
You dont't see the patience.
You don't see the struggle and problems.
You don't see how much time and effort it took.
You don't see all the setbacks and fails.
You don't see the hard work and sleepless nights.
You don't see the accounting and the financial stress.
You only see the cool business life. Great!
Being a boss, making money and living under your own rules.
Cold-Surprise
Beginners who never dealed with starting a business from scratch miss this part and get a cold surprise when facing the real business problems.
They are shocked when they start to experience all the stuff, which is not shown and talked about in the media regarding starting and managing a small business.
Starting and running a business is much more work than one expects. If you need more prove, then just wikipedia some companies and check their history: You will realize that most of the biggest and most successful companies needed DECADES to be who they are now. It's a journey of endless try outs- until one takes off.
If you look at the founders / owners you will realize that their drive was their passion and dream which fueled them along the way.
In a 30 second reel you only see the bright side- and this repeatedly.
Yes, I know- no one likes to talk about the ugly stuff. No one likes to talk about the doubts and problems. No one like to show off how they crashed a company and failed miserably. But that does not mean there is no dark side at all.
The truth is, it's a long journey with no guarantee of (financial) success.
That's one reason I recommend to start a business around your hobby. Don't get attached to success. Get attached to the actual thing and in becoming better.
If you love what you do, just improve constantly and add a little professionalism to it, this way success is included in the journey (at least more likely). Don't stick to a time schedule in which you limit yourself and put unnecessary pressure to your game.
Here's the real deal:
Small business ownership is about creating and realizing your own passion- in the best case even making a living from it.
It's listening to your inner voice, which tells you to follow your very own path.
It's an agreement with you and yourself. Once you start the journey, you won't be the same person. That's nothing negative- but it should emphasize that the journey will transform you into many different roles and development-phases which you need to master.
It is about a deep want and purpose. Not about the surface level fact of hey I want to be a business owner. You need a deeper motivation.
As a small business owner you are the boss and employee at the same time.
This will require to jump between different roles.
You must be willing to constantly learn and improve. There is not a single field which you can skip, because you just don't like it. You must deal with it, at least to a certain extent.
In my example: I hate everything with numbers and finances- I still have to literally force myself to learn and deal with taxes, accounting and calculating prices.
Starting a business from scratch will teach you more than any business book you'll read. Reading about business and managment will explain the theory, but won't be able to deliver the feeling and personal development.
You must know that there is also a difference between starting a business as a hobby (next to your job) and going all in. To be fully dependent on your project with no other option
I would always start as a side hustle, before going all in (and even investing all your money). There is no guarantee of success. You can have major influence on it, but it's not promised.
It's a lifestyle and doesn't suit everybody:
To make a small business run requires much time, attention and work. You must adjust your whole life to match the needs of your project. Being a small business owner is a lifestyle. You live a complete different life than an employee with no other job. Your thinking is different, because you need to find solutions all the time. You carry much responsibility.
A big difference between being employed and being a business owner is that a business doesn't stop. It's an all-the-time project. Even if your business is performing well, you still have to think and plan and manage everything. You can not delegate the decision making process to someone or give away the responisibility.
"Business on my mind. My mind on my business"
This is dangerours too: From individual to individual everyone handles this type of lifestyle differently. I met people who burnt out of this constant stress. They don't want to think 24/7 about their business. They want freedom more, than more work. Others in comparison (like me) love it. I can't imagine doing anything else. I love the hustle and the whole lifestyle. It keeps me alive.
Here is a collection of my favorite tips to prevent burning out in the process and delivering on top-level!