You’ve heard time and time again that starting your own business is challenging. There is the access to capital, product sourcing/shipping, warehousing, logistics, getting customers or clients, building a website and so much more. However, there are a lot of hidden, more personal things under the surface you should know. Today we will explore some of them.
If you start your business from home and shift from an office to home or basement environment, it’s a big shock to the system. Sure the allure of working in your pajamas or setting your own hours is great, but what about seeing your work friends? Getting coffee or lunch with co-workers? Dressing up daily? To offset this be sure to schedule some time before, during, or after your day to connect with friends and family. Also, don’t feel obligated to work in your pjs! Some people work from home in their work clothes to feel inspired for productivity.
Apart from the stress of getting clients and managing fluctuating income, be prepared for some mental fallout. When your to-do list grows and invoices are late being paid, thoughts such as “what have I done?” or “maybe I’m not cut out for this!” creep in. This is normal but you must make a distinction between pushing through a sunken cost fallacy or riding the ups and downs of entrepreneurship. A sunken cost fallacy is when you realize you have made a mistake but press on because you are already invested. Do your due diligence before setting up shop. The success stories of “I quit my job and just went for it with zero planning!” are few and far between. When you have a solid business plan, savings to support your finances as you grow the business, support and mentorship, you’ll be able to tell if it’s a bad day or bad choice.
You want to jump at every chance when you start out because you need to build your customer base and bring in money. Slow down! Vet your clients. Take deposits. Have a system in place for invoicing. Be very clear about your terms and conditions. The best of clients can “disappear” for a bit when the invoices come in. This is not necessarily intentional. Some may have their own terms (Net 30-90). Some may simply not be as organized as you wish. Getting paid (and paying your own vendors) is one of new business owners’ biggest frustrations, so have your systems for AP and AR in place before you get started.
AF Accounting can Help
Turn to AF Accounting for professional help with your small business or e-commerce store. We have individual and full suite services to match your needs and budget as you grow. Our cloud services mean the right amount of support wherever you are in Canada. Contact us today to learn more.