Becoming an entrepreneur may be something that you’ve always dreamed of.
Unfortunately, you may have the misconception that you’ll always love what you do and will be making a lot of cash without much effort.
This isn’t how it normally works out for most people, and many entrepreneurs become disappointed because they set too many unrealistic expectations for themselves. Being an entrepreneur isn’t always as glamorous as some people make it out to be.
Before starting a business, you need to keep these downsides of becoming an entrepreneur in mind.
#1. You Will Have To Eat, Sleep And Breathe Your Business In The Beginning
There’s just so much to do, and it’s not uncommon to put it 18-20 hour days. There isn’t any time for days off or vacations.
It really can be difficult to have a life outside of the business.
If you do decide to go forward with your dreams of becoming an entrepreneur, you will have very little free time, and you won’t have the luxury of taking sick days, having an hour for lunch or getting paid holidays like you might have had at your previous job.
Do keep in mind that all of this hard work will be worth it in order for you to become successful and get your business off of the ground.
In the future, you may be able to hire enough people so that you can take time off.
#2. There’s No Guarantee That You’ll Make A Consistent Profit
You may end up making a lot of money, but it could take a while. There won’t be a guaranteed amount of pay every single week.
In the beginning, you probably won’t get any pay at all because your business won’t have enough sales for you to cut yourself a paycheck.
This will require you to budget your money very carefully so that you can ensure that you can pay all of your bills.
It’s a good idea to have some extra money set aside so that you won’t struggle when sales are down.
It’s not uncommon for entrepreneurs to earn only a few thousand dollars in their first year of business.
#3. You May Have Difficulty Figuring Out A Schedule That Works For You
Being an entrepreneur often means that you will have a lot of responsibilities, and your day will look a lot different than it ever has before.
You may have difficulty trying to figure out a schedule that works best for both you and your business.
A lot of entrepreneurs get frustrated with the fact that they may not be able to work when they want to.
#4. There Is No Time For Procrastination
Most of us struggle with procrastination even if it’s just on a small level. When you become an entrepreneur, you won’t be able to procrastinate.
You will need to find a way to push yourself even when you don’t feel like doing anything. This internal struggle can be very difficult for some entrepreneurs to handle.
However, the less you allow yourself to procrastinate, the easier it will be for you to overcome the feeling of wanting to do nothing.
It may be helpful to make a list of everything that you need to accomplish each day. This will help you stay motivated to complete every item, and you will feel a sense of accomplishment as you complete each task.
#5. A Lot Of Patience Will Be Required From You
You may have the misconception that you will be able to make thousands of dollars overnight. Unfortunately, this is never the case. It could take years to see a return on your investment.
Because of this, you need to figure out how to be patient even when your business isn’t performing as well as you’d like it to.
You need to see its potential even if it takes a while to be successful.
A lot of entrepreneurs struggle with having patience and continuing to believe in themselves even if they don’t have a lot of money coming in.
#6. You Will Probably Need A Lot More Funding Than You Thought
Money is often a big problem when you first start a business. Many entrepreneurs underestimate just how much money they need.
This can lead to big problems because they aren’t able to come up with the money to pay for additional stock or find the funds to pay their employees.
Many entrepreneurs are self-funded, and they don’t have investors to fall back on when they are struggling with money.
If you plan on self-funding your business, it’s important that you save as much money as you can before you open your doors. You really can’t have too much money saved up.
You may be able to get a loan, but it’s becoming more and more difficult to get one if you can’t prove that your business is already profitable or you have some sort of collateral to put up.
Some entrepreneurs do have business credit cards on hand that they can use just in case an emergency arises.
#7. There’s A Lot Of Stress Involved
Even if you had a stressful job before, you probably have never experienced the amount of stress that entrepreneurs have to deal with.
Everything falls on your shoulders, and there’s a lot that goes into keeping a new business afloat.
Stress is inevitable, and it’s imperative that you figure out a healthy way to deal with it. You may find that mediation and exercise are very helpful ways to deal with stress.
If you don’t feel as if you have time to take part in any sort of activity to relieve stress, you need figure out a way to carve out some time.
Just 30 minutes of exercise or meditation several times a week can be beneficial.
It’s also crucial that you surround yourself with people that are positive. They can help you deal with stress, and they can act as your cheerleader when you are feeling down.
Don’t let stress overwhelm you, or you will eventually find yourself feeling very burnt out.
#8. You’ll Have To Pay A Lot Of Taxes
Paying taxes as an entrepreneur instead of an employee is very different.
Many entrepreneurs choose to register as a sole proprietor. While it is fairly cheap and easy to do so, you will also need to pay both Social Security and Medicaid withholding.
As you earn more money with your business, you will also need to pay additional taxes for these earnings as well.
Unfortunately, it’s not uncommon for entrepreneurs to forget about them or pay them late. This can lead to excessive penalties.
This is why it’s a good idea to pay an accountant to take care of your taxes for you.
While you may not want to pay a professional to handle them because you don’t have a lot of extra money, you will find that they can keep you from having to pay fines simply because you didn’t handle your taxes properly on your own.
This can save you a lot of money each year.
They can assist you with making quarterly payments for your estimated taxes.
This will ensure that you pay your taxes on time, and you most likely won’t be hit with a big tax bill at the end of the year when it comes time to file your taxes.
#9. There’s A Lot Of Competition
Even if you have one of the best products or services out there, you will still probably have a lot of competition.
Because of this, you may need to constantly come up with ways to set yourself apart.
It’s also imperative that you have a good reputation in the community.
You don’t want to lose business simply because you don’t deal with complaints well, are rude to customers or don’t have enough staff to deal with the customers that you do have.
This is something that entrepreneurs have to deal with on a continuous basis.
#10. You Will Need To Make A Lot Of Decisions Based On Other People’s Opinions
You may want to become an entrepreneur so that you don’t have a boss and only will have to answer to yourself. However, there will actually be a lot of people that you have to answer to.
Customers will give you feedback quite often. A lot of it may be good, but you will probably also deal with negative feedback more than you’d like.
The same thing can be said for your employees. Many of them won’t be shy at expressing their opinion when it comes to their likes and dislikes about the business and how things are run.
Because of this, you will need to make a lot of decisions based on other people’s opinions.
You certainly don’t have to take to heart what your customers or employees tell you, but your business is more likely to be successful if you have the ability to take criticism and make changes when necessary.
This will help you build positive relationships with others, and you will be able to earn respect and have happy employees and customers.
#11. Keeping Up With Marketing Isn’t As Easy As It Seems
Inexperienced entrepreneurs don’t realize just how much time and effort goes into marketing.
A few Facebook posts a week probably won’t be nearly enough.
It’s best to add new content to all of your social media pages at least every other day. You also need to engage your followers as well. Be available to answer questions or respond to comments.
It doesn’t hurt to have a blog either. If you don’t have a lot of time to make contributions to it, you can have your employees help.
When they have downtime, they can create business-related posts that you can add to your blog.
If marketing becomes too much to handle, it may be time to pay someone to do it for you. It will be worth it in order to attract new business and keep your current customers interested.
So What’s Next?