Owning you own business is not just about being you own boss or being able to boast at dinner tables that you are self-employed, in fact the first few years of operating and running your own business are an absolute nightmare. The reality is that you should be prepared to go on your first real holiday only after 5 years of starting your own business. Of course there are those who can go on an extended holiday in their first year of business but, believe me, they are few and far between. Being an entrepreneur is hard, but it can be very rewarding
Establishing Your Business
The art of entrepreneurship is as old as mankind itself, people have always traded since time immemorial and there have always been people who are far much better than the rest at aggregating supplies and/or services and selling them at a profit, while at the same time employing people to do various tasks for them.
These types of people have, in the modern world become known as entrepreneurs. I remember at school at age 12, we had a fellow schoolmate who used to bring fizz-pops to school and sell them to us at a ridiculous price and as much as we would complain and call him all sorts of nasty names, he would have absolutely no stock by lunch time. In those days, he had figured out that even though fizz-pops were very popular amongst school children, most of us could never remember to buy the cheaper fizz-pops at the shops on our way to school.
Establishing Your Business
Therefore his success in this little venture was mainly due to the following reasons:
Â· the product was in great demand
Â· he offered tremendous convenience by selling his product right outside the classrooms
Â· he had a virtual monopoly because the school tuck-shop for whatever reason had no desire to stock these popular products
Â· he went about his business with dogged determination despite being called unflattering names by his peers
After a while another boy decided to enter this lucrative market, however as much as we loathed the first boy we all continued to buy his fizz-pops. Needless to say the new entrant into the market could not penetrate the market. Whether by design or foresight, the first boy had established what is known in the business world as reputation, a brand and trust Â all intangible assets.
The above example demonstrates that entrepreneurs see opportunities that others do not or unwilling to see and act upon them. Any one of the 600 school kids at my school could have supplied the fizz-pops but none of us did because we neither saw the opportunity nor were we prepared to go through the hassle of buying the supplies etc every day. We were comfortable enough to receive pocket-money from our parents every day. Needless to say this boy, now a man, runs his own very successful business, while most of us work for that monthly pay packet.
The lesson here, is that, whatever business you decide to go into develop your reputation, establish a brand and develop trust. These do not come overnight, it is a process and not an event. Once you have a particular goal for your business in sight, do not be discouraged or distracted from achieving that goal.
AW Accounting Services
James is a chartered accountant who has been involved in small business start ups over the past 6 years. He has a wealth of experience in financial administration and operational management within the small to medium business sectors. For More please visit http://www.sendarequest.com