subject: 5 Bad Sides To Running Your Own Company Formation [print this page] 5 Bad Sides To Running Your Own Company Formation
Before explaining the bad side to running a business, let us not forget the many positives to be had out of having your own company. If you are starting now, in a few years from now you can be relaxing in a luxury yacht, sipping champagne. Ok so that is an extreme example- but why not? A successful business can transform your life. Company formations are mean't to make your life easier! The biggest risk with running a company is financially. You can end up running into serious debt very quickly if you mismanage your finances. There are several ways to end up in this predicament. Firstly, overpaying your suppliers. You must as a business owner, negotiate the very best rates. Alternatively, employ a buyer that is skilled in the art of negotiation. On the subject of employees, try and not overpay, as a big wage bill can cripple you. From experience, this is what I have found with all my UK company formations. Some people have the natural ability to do very little and earn lots from that by getting other people to do the hard work. However, there aren't many people like this. The majority of business owners find it very hard to sit back and not be involved with every aspect of running the company. Do try though, to make the business run almost without you. If for the next three to five years you are working more than eight hours a day, the business isn't working for you. Dealing with difficult customers is enough to put any sane person off. There's not much fun in being shouted at for something that isn't your fault. All the time, you have to smile and be polite. Either develop a very thick skin, fast, or employ someone else to handle customer service. Be prepared for red-tape and bureaucracy when start a business. You'll have to handle everything from health and safety issues to making sure you put up no smoking signs. The many rules and regulations associated with running a company can really get in the way of actually making money and providing a good service. Starting a business is a very draining experience. Firstly ensuring your product and services run like clockwork. Then there is the financial drain. Unless you have a service that costs nothing but time to provide, you will need to invest your own money in the business or borrow from the bank. It isn't inconveiveable that you can lose everything. Please don't let me put you off though. Finding five negative sides to running a business was very difficult. There really aren't many more negative experiences with running a company. The rewards can be great, and you really can design and create the kind of life most only dream of. If you do go ahead with company formations, I hope you are successful.
