Starting Your Own Business - Part 1
With the economy so shaky, many businesses are downsizing. Our children's soccer coach lost his job a year ago and is starting his own business offering personal training for children. He is now leading our homeschool co-op's PE class. One of my musicians (I am a worship leader) injured his back and is starting a T-Shirt company. His designs are amazing and I look forward to wearing his products. After months of job searching to no avail, my niece is beginning to sell Avon. Our pilot friends lost his job in flight instruction and has started a home improvement and repair company.
My husband and I have had a family business since the early nineties and we enjoy the joys and challenges of self-employment. Several years ago, we incorporated our business, making it an umbrella for several businesses, including my new publishing company, Powerline Productions, that my friend, Laura, and I are getting off the ground.
It seems that I am surrounded by people who have, or are starting, their own businesses!
Reasons for Starting Your Own Business
Reasons abound for starting your own business. What a blessing it is be to be your own boss and have a flexible schedule. You can plan your work hours around the children's school hours and family needs. There is potential to make more money, thus sowing more into the kingdom of God. You also have the opportunity to cultivate your own leadership skills and impact employees and customers. There are a lot of reasons that make starting your own business attractive, so why doesn't everyone do it?
Here is a little reality check. If you are used to working nine to five, or some other forty hour a week job, starting a business will be a shock. Most business owners put in at least 70 to 80 hours a week, especially when they are getting their business off the ground. Many times, there is no profit (and thus, no paycheck) for two to three years. There are, of course, exceptions to this, but, for the most part, starting your own business is a huge undertaking, best begun with lots of prayer and clear direction from God.
"There is no wisdom, no insight, no plan that can succeed against the LORD" (Proverbs 21:30 NIV).
The most important reason to start your own business is that God calls you to start one. His will and plan is for you to be blessed so that you can be a blessing to those around you. If God's plan and destiny for your life includes starting your own business, it will impact the people around you for His glory. That doesn't mean that it has to be a ministry, but that you minister through it to your employees and customers. Don't even try to start a business that isn't God's will or plan for your life. If your goal doesn't honor the Lord, it is not God's will.
"Plans fail for lack of counsel, but with many advisors they succeed" (Proverbs 15:22 NIV).
Get counsel from trusted friends and family members before striking out on your own. What do they think? Write down their counsel and give it prayerful consideration! It is good to talk to mature Christians, other business owners, and people who know the real you to get a broad range of counsel and insight.
Pitfalls to Owning Your Own Business
Before we talk about the character traits necessary to owning your own business, let's talk about three very big character flaws that cause problems for business owners. If you see yourself in these pitfalls, don't despair. The Lord can change and mature us in Him. Work on these areas and get them straightened out before you start your own business. I have seen these three things cause businesses to fail.
"Like a city whose walls are broken down is a man who lacks self-control" (Proverbs 25:28 NIV).
A business owner without self-control will not be able to run her business effectively. Self-government is simply the ability to run your own life well, control your emotions, manage your time, manage your money, maintain healthy relationships, and follow through with personal plans and goals.Without the ability to manage yourself, you will not be able to manage a business.
Scheduling
"Teach us to number our days aright, that we may gain a heart of wisdom" (Psalm 90:12 NIV).
Hard work is required to get a business off the ground. Hours and hours of work must be scheduled into your life without taking away from the priorities of family, church, and time with the Lord. If you cannot prioritize and schedule your life, you might let important things in your life and new business fall through the cracks.
Administrative Abilities
"Let love and faithfulness never leave you; bind them around your neck, write them on the tablet of your heart. Then you will win favor and a good name in the sight of God and man" (Proverbs 3:3-4 NIV).
Bookkeeping, accounting, record keeping, and other administrative tasks have always bored me, but I realize their importance in a successful business. You not only risk trouble with the Internal Revenue Service (IRS) and other government agencies, but you can find your self in trouble with customers, employees, and vendors if you are not careful. Cross every "t" and dot every "i" in your business! It is a matter of integrity. People should be able to trust you completely, down to every last administrative detail.
Next time, we will talk about the character traits of a good businesswoman and how to chose what kind of business to start. Until then, be blessed with bright, beautiful days!
Meredith,
As a CPA, I am so glad that you mentioned the benefits of record keeping. It is vital to business success. Business owners that keep up with record keeping on a monthly basis have an 80% survival rate, compared to only a 36% survival rate for owners that only update records annually.
Unfortunately, I have several business clients that do not know if they made a profit until I prepare their tax return. They don't stay in business for long.
Record keeping is not just to stay out of trouble, as you mentioned, but to help you run your business better. Without good records, do you know what products or services were most profitable? Do you know if you have enough inventory? How are you doing compared to last year? Are you covering your expenses or only breaking even?
I believe that accountants would still have a job even if the IRS closed its doors-that's how important good records are to business success.
Great post!
Carol Topp, CPA
www.CarolToppCPA.com
MicroBusinessForTeens.com
Posted by: Carol Topp, CPA | October 25, 2009 at 10:07 PM