Riding the Emotional Roller Coaster: Self Employment Tips

Tips for Thriving as a New Business Owner

1. Put Aside Six Months’ Worth of Living Expenses – The major mistake that new business owners make is failing to leave themselves a financial cushion. However, when you consider that it might be at least three years before you build a strong base of customers, you can easily understand how vital it is to have some money in the bank. You should strongly reconsider the launch date for your company if you do not have enough money put aside to survive for at least six months without any income.

2. Insure Your Business – Everyone knows that business owners need to get multiple insurance policies in order to protect their company from liability and property damage, but many companies fail to acquire business interruption insurance. Being able to file business interruption claims is an important safety net if your company is forced to shut down for a while after a natural disaster, fire or other similar incident.

3. Take Time for Yourself – Owning a business requires a lot of time and attention to detail. However, if you do not let yourself have some downtime, you are going to end up getting burned out. Therefore, you should schedule at least one day off per week to unwind. If you get into a busy time that makes it impossible to take a day off, you should at the very least get away from the office for lunch to allow you to clear your head.

4. Make a Budget and Stick to It – After you bring in enough money to take care of all of your bills and other budgeted expenses, you should put any excess in the bank. After all, it is important to remember that there will most likely be several months when you do not hit your targeted number, and putting aside money during your best months will help get you through the lean times.

5. Separate Your Identity from the Business – One of the biggest emotional mistakes that business owners make is to let their personal feelings of worth hinge on the success or failure of their company. As long as you give it your best and take steps to protect yourself financially, you should give yourself a break if the business does not become as successful as you had imagined. After all, you are a separate entity from your company.

Before you open your business, you will need to make sure that you have all of the necessary items in place, including insurance. Once everything is all set, you should move forward, and do your best to run a successful company without sacrificing your entire personal life.