By Paarull JS Bakshi
With the growing number of Small Businesses in Vancouver, it just seems that there is an increasing amount of budding entrepreneurs that are born every day. Lots of people in their late twenties and early thirties start new entrepreneurial ventures hoping to succeed so that they no longer need to work their day jobs. Either that or the fact they think, being a business owner is a glamorous job and the word ‘Business’ is synonymous with money. Sadly, the reality is far from it.
Here is what the thought process of these entrepreneurs is like:
Why they start the Business?
• They think it will give them financial freedom to do what they want
• They think they can retire faster if they start a business now
• They think they have the skills to be a good business person
• They’ve just received some money from a previous investment or from family and want to grow it
• They think that this will make them rich
• Their friends encourage them to become partners
• They have a passion for something like photography, event planning, cooking, etc.
• They think that it’s not hard
• They’ve been approved for a loan
• They have an awesome idea
After Purchasing the Business:
• Reality check strikes: the overheads are more than what were accounted for
• The friendship-partnership is not really working out too well
• It’s harder than they thought
• They thought they were good at marketing, so how come the sales are low?
• Their accounting is all over the place
• They seem to get no days off!
• They seem to be stuck as their original business plan isn’t quite working out
• They start looking for a partner/investor as this business has gotten out of their hands
• They start looking for a way out within the first 6 months
What happens after a year?
• Some Businesses survive the ‘one year probation’ period in owning their own business
• Some have found additional funding and or an investor/friend/family
• Other simply could not make it and now have decided otherwise…
• Some have let go of their Entrepreneurial dream and moved on…
Please note that this doesn’t have to be or is the case for ALL BUSINESSES that open up but is definitely a noticeable trend.
Things to perhaps keep in mind before beginning your dream venture:
• Do your Research
• If you estimate for a $100,000 of expenses, have $30,000 extra in your savings/line of credit, etc. available to you
• Avoid partnerships if possible – it can ruin relationships (money and relationships, just don’t mix)
• Get expert advice – don’t be a ‘know it all’ – first of all no one likes them and secondly, no one will help you! There are people out there like Consultants who are experts in their fields and can certainly guide you the right way.
Business doesn’t have to be hard, just plan correctly and be realistic!
Paarull graduated from Langara College with a Bachelor’s Degree in Business Administration (Marketing Major) in 2011. She has been working with many small businesses in Vancouver and the lower mainland for the past few years assisting them with various needs in the field of Marketing, Sales, Franchising, PR and Business Development.