How to handle the ups and downs of small business ownership

If you've recently started a small business, hats off to you. More than 99 percent of the U.S. economy is composed of small businesses, according to government data, so much of the country's success is a product of small-business owners' hard working efforts.

But if the first few months have been a bit of a roller coaster ride, don't worry; it happens to just about everyone who ventures into the entrepreneurial unknown. The key is to embrace the twists and turns. 

Standing the test of time
One of the biggest question marks aspiring entrepreneurs ask themselves before launching a company is determining whether they have what it takes to remain up and running. Their concern is not without cause given that in many years, more companies have closed than opened. Indeed, between 2008 and 2009, approximately 518,500 launched, according to figures collected by the SBA. Meanwhile, more than 680,716 ceased operations due to bankruptcy, whether personal or businesses-related.

Even in the early going, the survival rate is a 50-50 proposition, more or less. Indeed, according to the SBA's estimates, roughly half establishments make it to their fifth year or longer. Even less – 33 percent – stay open for 10 or more years.

If there were a silver bullet to startup survival, it'd have been fired a long time ago. The truth of the matter is owning a business is a multifaceted undertaking, influenced by the economy as constituted, consumer buying behavior and sentiment, the demand for specific products or services and the management capabilities of the people in charge.

Jacob Warwick, guest writer for Entrepreneur magazine and founder of a strategic marketing company, knows what it's like to manage a company in its infancy and offered a few suggestions of how to avoid common pitfalls.

Don't fall victim to stress
Stress is inevitable, particularly as a business owner having to juggle hiring and firing, inventory, cash flow management and daily incidentals. But if you let these tasks consume you, it's a recipe for disaster, Warwick warned, especially if it affects your home life.

"No matter how busy you may become trying to fulfill your dreams, always make time for your spouse, your children, your family and your friends," Warwick advised. "Your support system will be with you through thick and thin, which, any entrepreneur knows, can happen at anytime."

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Don't let missteps deter you
A perpetually seamless business operation, when nothing ever goes wrong, is every entrepreneur's dream. But the chances of this outcome happening are slim to none. And on the particularly bad days, you may want to call it quits altogether, returning to days when you weren't you're own boss. Resist the urge, Warwick advised, and accept the fact that things aren't always going to go as planned. Being a successful entrepreneur requires grit, determination and resilience to adversity.

Avoid self-doubt like the plague
Choices are part and parcel of business ownership, as each option you take affects your organization in one form or another. But when certain selections go south, you may feel gun shy about making other decisions, worried that they too may go astray. Warwick stressed nothing crushes success quite like self-doubt.

"You can't beat yourself up over failure," Warwick advised. "Consider that you're trying something new, and it's not like there is a clear course of action on how to become successful, reach your goals or even make yourself happy. Cut yourself some slack."

As veteran business attorneys, we here at the Law Offices of Donald W. Hudspeth have seen – and experienced – the ups and downs of business management. We can help you manage expectations and overcome setbacks. For more information on how we can be of assistance, please call us for a free intake and evaluation.

Categorised in: Starting a Business in Arizona

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