Thinking About Starting Your Own Business?

Guest Blogger - Sue Ann Daniels (with editing help from Steve Simon!)*

Work is…well…work. Nine to five, slave for the company, work until retirement. Maybe you are tired of working for someone else. Maybe you lost your job due to COVID. Maybe you just want a change. Maybe…well…just maybe, you should start your own business! 

There are many reasons people think about starting a business. Here are a few: 

• Lost job or reduction in hours 
• Need additional income (e.g. second job or retirement supplement) 
• Be your own boss 
• Save for retirement, or other large item, etc. 
• Do something you love 
• Flexibility 
• There are many others

For me, it was a personal choice. I had some family obligations that made it difficult to work a standard 9-5 job, so I looked into starting a business. But whatever your reasons are, you need to keep in mind several important considerations before you start your own business. Oh, there are hundreds of articles out there on HOW to start a business. But let’s look at if you SHOULD.

1. Can you afford it? And I don’t mean just the cost of setting up a business. If you plan to leave a job to start the business, can you afford no profit for several months until things are up and running? Can you afford the start up costs associated with starting a business? Can you afford living on a business loan, if you can get one, until something pans out? Can you afford to pay other staff if needed? 

2. Do you have a Business Idea? If not, no worries! Start brainstorming. Think of things you love. Think big. Think small. Think medium. On-line? Brick and Mortar? Service related? Crafty? Handy? Throw it all out there and see what sticks. And keep throwing out there. Think, think, and think some more about it. Have you had a long career in a particular field? If so, think of ways to turn that into a new opportunity. Think beyond what your current or past job titles say and think about what you really DID on the job. 

3. Do you have a Passion? No, this is a serious question. We all think we do, but do we really? Think of ways that you could turn that passion into money. In my experience, my husband and I loved good food, wine, and the outdoors. We started brainstorming. And looked for ideas. And looked. And looked. And we finally hit on our business idea, selling picnic and wine baskets online. Finding ongoing passion and meaning includes not only your interests, but also your skills, best-fit environment, and the right opportunities. I was able to check all the boxes. I was obviously highly interested in this type of business, I learned the business skills, the environment of doing this from home was ideal, and the opportunity was there to make a successful run at it. 

4. How much time do you have to invest in the business? Not much? Then start really small, ideally with something on-line. You can ALWAYS grow it later, after it starts bringing in some money. This is a good strategy if you plan to start the business while you are still working or if you plan on a part-time business while transitioning to retirement. 

5. Understand what you CAN and CANNOT do and what you WILL and WILL NOT do. I was a direct face-to-face salesperson. Hated it but was good at it. I decided to look for something different. I am very task oriented, I like it, and I am good at that. Turns out a retail on-line store worked great for me. However, I am NOT an accountant. Therefore, I made sure that I had a good back-up plan for accounting and finance help. Your skills will be different, so plan accordingly. And be honest with yourself! Take into consideration what help you will need, and how you would go about getting it. And if it will be another cost of your business. 

6. Do you like to work? If not, please don’t start your own business. You might be better off finding a job with an existing company. Small business owners often put in more time than people with normal 9-5 jobs. When it is your business, your passion, and your money, you work twice as hard as when it is someone else’s. I spent many a holiday and vacation glued to a computer processing orders while my family and friends were enjoying the beach, as vacation times coincide with top retail sales. It was worth it, but it was hard at the time. Keep extended hours and working during usual leisure time in mind! 

7. What will you do for benefits? The Affordable Care Act makes it much easier (although not super cheap) to get Health insurance. If you are old enough to qualify for Medicare, then this becomes less of an issue. And maybe, if life permits, you decide to hold off on the business full time until you DO qualify. Medical expenses are likely to increase as you age making good insurance essential. But what about retirement savings and pension income? Don’t forget to think about investing in an IRA and obtaining or maintaining your life Insurance. Many companies, as well as some organizations, help small businesses in finding benefits. 

8. Don’t be afraid to ask for help. Help is out there. Google is your friend. Google “starting your own business” to pull up hundreds of articles. Check out your local library. Call your local Chamber of Commerce. Look at the US Government’s Small Business website, https://www.sba.gov/business-guide/10-steps-start-your-business. The AARP is a great resource for small business owners, https://www.aarp.org/work/small-business/. You can also receive free personalized mentoring and training from business experts through SCORE in partnership with the U.S. Small Business Administration. According to SCORE “Small business owners who receive three or more hours of mentoring report higher revenues and increased growth.” 

If you read through all our questions are still motivated to start your own job, then You Go For It! Owning your own business can be very rewarding!!! And best of luck to you! 

And by the way…. to give you more of my story….my on-line business, TheWineBag.com, was very successful for over 12 years, until our suppliers started selling to Amazon, and we could no longer compete. However, those were wonderful years. I worked flexible hours, loved what I did, and made good money!

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*Sue Ann Daniels has been a Gig worker for 4 years, after 12 years as a small business owner and 20 years in the corporate world.  She currently works part-time for Human Services Outcomes as Dr. Simon's assistant, as well as doing gig work for 2 other companies.