Awesome! You’ve already started your business, and everything seems to be sailing smoothly, your confidence must be through the roof! At this point in time, it will be difficult for you to continue understanding that at any given time, everything you’ve worked for could come crashing to the ground in a pile of rubble.
Keep The Cash Coming: By this stage, you should fully understand that any income your business makes flows blissfully into your pockets if you want it too. You may be on cloud nine, and your business is the best in the town so of course there’s no need to worry about taking home all of that extra cash. Except, what if a new business comes around and slows down yours – causing you to be taking more than you can allow for budgeting reasons. Do not budget more than you can chew, you will find it difficult to make accurate financial plans.
Are You Okay, Partner? So you’ve decided to share ownership of your business with someone else? There are various disadvantages to co-owning, one being extremely important: liability. If, somewhere along the way, your partner takes legal action against you, this will hurt your business. If you and your partner disagree on a particular issue, this could cause leadership problems with your business. Always understand exactly what you’re getting into when deciding to be a part of a partnership.
You’ve Been Exposed! Assume that at any given moment, you could be slammed with a lawsuit. It may be your business, but it is not your decision on whether or not you get sued by someone or another company – be prepared for anything.
Failure: Still be keeping the chance of failure in mind and be sure that if your company does crumble, you won’t crumble with it.
IT’S TIME TO GO…
So you’ve gotten this far, but you’ve conclusively decided that it’s time to part ways with what you’ve built. You may believe you’ll be away from a trap when exiting your business, but there is still room for problems. Make sure you comprehend them when making your exit!
It’s Your Turn, Kid: While you may think it’s an enjoyable way to exit your business – passing the job down to your own child – this can actually cause a feud. Say you’ve been working your business a certain way for the past twenty years, and then your kid comes along and decides that they don’t like the way you’ve been doing it and what to change your business completely? This could be detrimental to relationships within your family – and if you haven’t adequately passed on the business, lawsuits could conspire.
What Am I Giving Up? Do you know what you’re saying goodbye to in full detail? How much money you won’t be making, the relationships you’ve built, and everything else in between the lines that you have earned? If you are unsure, then it would be wise to write everything down, so you know you’re set when you leave.
Liquidating: You’ve basically just flushed everything down the toilet, all that you’ve worked for. How does that make you feel? You’re going to flat-out get rid of your business.
Money Run: You’ve become a gold-digger of sorts and have decided to take out a large sum of money that’ll help you throughout retirement. To your dissatisfaction, you may see that you lose more in tax than you thought.
Sold! It’s great that you’ve found someone to buy your business, but how does it make you feel to know all that you’ve worked for has just been sold? Are you ready to let go?
While the disadvantages of having your own business are surely intimidating, they are there to not scare but as a challenge – are you up for it? Do you believe in your heart that you have what it takes? Of course you do! All you’ve got to do is make sure you understand what you’re getting into inside and out. Disadvantages are essential but don’t let them steer you clear of what you wish to achieve.
Could this be Australia’s first and only Ukulele Record Label? Optimist, Pessimist or Realist? Sometimes You Have to Be All Three