6 cold, hard facts about starting your own business

January 25, 2010 | Posted by Carolyn Pikoulas
With today's technology, there's no telling how many new businesses will sprout up each year. Those with the most creativity and resources will most likely be the ones to cash in. Despite the vast possibilities in this marketplace, there are a few realities you need to know before starting a business. First, ask yourself a few simple questions: Who needs what I'm offering? Is there space for my product or service in the market, or is there a lot of competition? Will my market be national or niche? Realize that just because you're offering something, it doesn't necessarily mean anyone wants it. So, here are several issues to consider about owning your own business:

1. You can get taken for a ride.
Starting a new business is like a roller coaster. It's much harder than working a 9 to 5 job, where you know when your next paycheck is coming. There will be many ups and downs. Sometimes things will move really slowly, while other times things will move really fast. There'll be times when you really enjoy what you're doing and times when you want to sit in fetal position in the corner. And to make matters worse, sometimes things will appear to be going really good, but you end up getting thrown for a loop.

2. You'll work longer hours.
In most cases, owning your own business means working far more than a normal 40 hour work week. And even after you start making money, things may not change. You could be working 60 hour weeks for several years. Sure -- you get to be your own boss, set your own hours, and wear any outfit you want. But in reality, you now have hundreds of bosses (your customers). If you can't give your "bosses" what they want when they want it, your business will flounder.

3. You need to discover and solve your customers' problems.
Your customers have to believe that you're able to solve their problem. As a business owner, you can easily get so wrapped up in your company that you fail to see the problems that arise from the people who are paying you. It may take a lot of time, energy and research to find out exactly what your customers really need.

4. You need to get paid.
Whether you believe money is the root of all evil or not, you need money to keep the business running. Especially in a service-oriented business, one of the biggest issues is not getting paid timely by your customers. This will inevitably affect you, your employees, your necessary expenses and -- not to mention -- your profits.

5. You may put in a lot but only get a small return.
The effort you put into building a solid reputation may not be reflected in the revenue that's coming in. If that's the case, you need to rethink what your company is all about and who your true target market is.

6. You must constantly examine your company in order to perfect it.
The most successful companies haven't always been so perfect from the beginning. Instead, they have merely been the ones that got their business out to the public as soon as possible. Once you get your company up and running you can gain insight from helpful feedback, make modifications, then get more feedback, and continue to improve your system. By being relentlessly self-aware to meet your customers' demands, you'll have a higher chance of success.

Don't let these facts scare you. The best reason to start your own business is that you'll be doing something that makes you happy. And I, for one, prefer happiness over wealth any day.