Is this the Right Time to Start a Business?

Newsletter #14: Small Business Insights

Hello Reader,

Starting a business is a significant and personal decision. While this topic warrants extensive discussion, let's focus on one key aspect: Personal Readiness.

In our "10 Things to Consider Before Starting Your Business" series, we've touched on Mission, Vision, Values, Goals, Knowledge, Skills, Risk Management, and Exit Strategy. Today, let's refine the question: Is this YOUR time to start a business?

Imagine your business plan is ready, financing is secured, the market looks promising, and all systems are go. Before you begin, take some time to assess how your personal and family life are going to be impacted. You are going to miss some important family activities, face immense pressure from all sides (That’s why they call it a pressure cooker), and make sacrifices that affect your loved ones.

The only way your business will succeed is if your spouse, kids, extended family and friends (aka your support system) are ready to make the next 2-3 years your time.

Evaluate Your Personal Support System

Balancing your business and personal life requires constant negotiation and trade-offs. It's crucial to ensure your business doesn't always take precedence. This advice may seem basic, but it's essential. Failing to secure the commitment and support of those close to you can be the Achilles' heel of your entire operation.

You must be willing and able to say "NO!" when necessary, and your support team must be ready to say "YES!" when you need help. If you can't secure this commitment, it may not be the right time to start a business.

The Importance of Saying "No"

As a self-proclaimed Yes-man, I have three criteria for granting requests: Is it safe? Is it moral? Does it make sense to me? However, I often feel selfish when a request makes perfect sense but is financially unfeasible. Many entrepreneurs struggle to say “no” to unplanned expenses, leading to financial trouble for their business.

Securing your family's commitment upfront is crucial. Without this conversation, your ability to say "no" is diminished, and your willingness to start an argument fades quickly. Before you know it, you are extorting money from your own business on a regular basis.

Partnerships, corporations, and joint ventures offer more structure and accountability when it comes to withdrawing money from the company, with real consequences for mismanagement. As a sole proprietor, it's essential to apply the same level of rigor and discipline to your company finances. This ensures financial stability and helps avoid potential pitfalls that could jeopardize your business.

Can You Find Joy While Starting a Business?

Most entrepreneurs love what they do, but others may need help finding joy in the process. Here are some tips to promote joy in your business and relationships:

Do not over-commit: Yes-men, like me, often struggle with this. Your customers will thank you and your family will thank you.
Over-communicate: Hold regular weekly updates to share successes and challenges.
Ask for help when needed: Simple tasks that add value without requiring lengthy training are ideal for kids and spouses.
Be thankful: Starting a business is a privilege, and you are asking your closest allies to accept the associated risks. Be thankful for what you have and celebrate your achievements with your family.
Listen: Validate the feelings of your support group by listening. Honestly evaluate their feedback.

Many couples find it challenging to work together in business due to potential arguments and disagreements. The underlying issue often presents itself as equality issues. But equality arguments arise when one or the other is feeling a lack of control. To mitigate this, consider creating distinct roles that don't overlap, allowing each person to thrive independently. However, finances should be a shared responsibility.

Ultimately, the right time to start a business can be anytime, but it must be YOUR time. At some point your spouse may want to start a business. If so, make sure it’s their time. They could use your support.