Seven Reasons Why You Cannot Start a Small Business


If you are considering starting a small business, it is absolutely vital that you have a clear vision of why this is the best course of action for you. Make sure to be in complete control of your expectations and read through the article before jumping right in. There are many little known facts about starting a business that should make your decision to do so much easier.When an incident expands  the demand for your business, never scale up unless you have a cash flow of at least twice the amount that you need to support. 

This is because a lot of businesses that could be doing well, run into major problems. Many people who start businesses assume that they will make money by selling their product and making profits. The real formula for success is to make money and keep it made. The true purpose of starting a business is to earn money which can later be invested in other endeavors or even used for your own needs. Starting a business requires a lot of time and energy that could otherwise be spent on something else such as your family, personal interests or your friends and family.

Seven Reasons Why You Cannot Start a Small Business :

1. It is difficult to hire highly-skilled employees. 

Most people who are struggling in the job market know that they need to look for jobs within their industry. However, many cities have a high unemployment rate meaning that there may not be a lot of people vying for the same jobs. In addition, there is also a wide gap of pay between entry level employees and those that are highly skilled and experienced. This results in companies having difficulty hiring employees since their starting salaries force them to pay much more than they want to spend. 

2. You cannot build your own workforce.

One of the most important factors in a business is the ability to get a workforce that is willing to work with you. Many businesses expect their employees to relocate to their location and give up their family, friends and other commitments. This creates a ripple effect of problems within your business as many employees abandon it before they become highly skilled, losing valuable time spent on training. 

3. You cannot enjoy the rewards of your labor.

Many business owners work tirelessly within their business and are not really rewarded for it. The fact of the matter is that if you work hard and you do an excellent job, with time all of your efforts will be rewarded. Those who choose to start a small business know this and plan accordingly. However they usually become overwhelmed with their responsibilities and the feelings of anxiety when they think about what could be happening if they create more stress into their lives.

4. You cannot escape from the problems of big corporations.

Most businesses have to deal with problems that are major setbacks for them such as recalls or product recalls, negative publicity and even major lawsuits brought against them. Many small businesses that are created to resolve a problem on a small scale often become victims of their own success. This is the reason why they cannot grow larger and are forced to stay in their original location even though they have the means to expand.

5. You cannot set your own standards for success.

The ability to set your own rules and standards for your business is generally easier for large corporations whose resources allow them to do so. However, when you start out as a small business owner, you will have to deal with constant pressures from various sources that create a much larger expectation than that which you had originally planned for yourself. Small businesses are also more susceptible to market risks than large corporations which can result in your business failing even before it has truly taken off.

6. You cannot develop your business ideas instantly.

Many small businesses experience unexpected losses of capital due to delays during the startup stage where these losses are a fact of life for you and your employees. Most small businesses will not have the benefit of having a large budget that can be used to cover these expenses. In addition, most small businesses start out in their original location while they continue to search for another one that is much larger than the current one they have.

7. You cannot make enough money to save for retirement.

In order to achieve your goals, many small businesses are often forced to sacrifice their own retirement plans which can be detrimental in the long term. For example, a traditional 401(k) plan allows you to defer taxes on income that is saved over a certain amount of time but this is usually not possible with small companies which usually allow you to participate in the plan only after a year of service. This means that you will have less savings at the end of your career and may not be able to retire at all due to higher living costs as well as rising costs during retirement years.


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