The Secret Life Of Entrepreneurs: 5 Things To Expect When Starting A Business

Ever dreamed of opening your own cafe, storefront, or creative agency? Taking the plunge into entrepreneurship is likely to be a bit of a daydream for many of us boss babes out there. In fact, you may have even spent the past few months honing your multitasking skills and researching the markets you’re looking to enter.

But how do you know when you’re ready to make your move? For starters, it helps to know exactly what you’re in for. And we don’t just mean conducting market research here – we mean fully understanding the logistics and practical aspects of starting your own small business.

To help, we’ll be outlining 5 things that all entrepreneurs can expect when looking to break out on their own.

1. Insurance is part of laying a strong financial foundation

Although the foremost priority for many entrepreneurs is likely to be securing financing or investors, it’s important to keep in mind that securing insurance for your small business is just as vital to ensuring your enterprise has the financial infrastructure it needs to operate with minimal risks. This is because your business insurance policy will provide cover in the event that your business experiences any insured risks.

And with the growing flexibility and range of business insurance policies out there, you can insure your business against a range of different risks, spanning from business interruptions to public liability or professional indemnity claims that are made against your business. So be sure to read up on the types of business insurance cover that will be available to you, just to make sure that you’re securing the right policy for your business needs.

2. Risk assessments are routine, and their results aren’t static

Speaking of your business risks, it’s important to remember that as your company grows, so too will its operational processes. And if your company processes and structures change, then it’s only natural that your business risks would change as well.

With that, it’s essential to invest in routine risk assessment processes for your business. That way, you can keep your risk mitigation procedures as up-to-date as possible, thereby improving your company’s chances of making a swift recovery in the face of a business risk.

You may opt to conduct a risk assessment annually, twice a year, or even once a quarter, if you feel your business may benefit from more consistent risk evaluations. And while you’re facilitating this process, it’s also important to revisit your business insurance policy when your renewal period swings around. Doing so can help ensure that your selected insurance policy consistently provides the most comprehensive cover that protects against all risks with a higher likelihood of occurring.

3. Investing in digital is more important than ever before

Even if you’re not starting an online business, building up a web presence (and perhaps even a social media presence) is still a must for your modern enterprise. This means that business owners should seriously consider honing their digital skills prior to registering for an ABN.

It’s a good idea to learn the basics of website building and design – just so you have the skills you need to tweak your company website whenever it may need a little update. Alongside this, you’ll want to learn some basic digital marketing skills to boost your company’s chances of maintaining strong digital visibility.

Of course, if you feel like you need extra guidance or assistance, then you should feel encouraged to allocate some of your budget for a professional marketing specialist or even a digital agency. Trust us, marketing is not a facet of your business management that you’ll want to skimp on. And you should expect to spend a little more of your business budget on your digital assets as well. You’d be surprised by the difference a good quality website builder can make when it comes to bolstering your company’s digital presence.

4. It takes time to find your footing with tax deductions

One of the most high-profile perks that accompany owning your own business is the opportunity to make the most of your business tax return every end of the financial year period. The nature of business taxation in Australia allows entrepreneurs the opportunity to claim back a wide range of different deductions.

But the sheer amount of potential deductions that your business can feasibly claim is just as much a curse as it is a blessing. How so? Because it’s a common pitfall that often results in novice entrepreneurs spending far too much of their upfront capital on deductible business expenses just because they have the opportunity to do so.

Keep in mind that you’ll still need to make sure that your company has adequate capital to fund growth opportunities from quarter to quarter. So just because you do have the opportunity to make deductible expenses, it doesn’t mean that you should. It’s better to be conservative in your first few years of operating – even if you do have the capital to spend.

5. Hiring isn’t a straightforward process

Finally, if the time does come where you’d like to expand on your workforce, be warned that securing the right talent for your expanding team involves so much more than simply posting a job ad. Hiring is a deceptive process in that it looks a lot easier than it actually is – and without HR staff or a larger management team, you’ll likely find yourself screening job applicants without a second set of eyes to support you.

As a result, entrepreneurs spend a lot of their time simply learning how to ask the right questions, and familiarising themselves with what to look out for when searching for industry talent. But learning how to read people comes second to learning how to speak to people – both when you’re hiring them as well as when you’re rejecting applicants.

And that’s the thing – hiring doesn’t just involve conducting interviews and sending out employment contracts. It also involves communicating with people who may look up to you, and ensuring that you always have time for them, even when you really don’t. But rest assured, that making space for this empathy will only enhance your experience as an entrepreneur. So be patient and stay empathetic, both towards your job applicants but to yourself as well.

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Whilst there are undoubtedly many benefits to starting your own business, it’s clear to see that this enterprising endeavour isn’t for the faint-hearted. Building up your own business will require you to don multiple different hats a day and work irregular hours, so even if you do get to be your own boss, you’ll still find yourself lacking absolute control over your weekly schedule.

If you have put in your hard yards at a 9-to-5, however, and you feel like you have all the knowledge you need to set out on your own, then why not bet on yourself? Who knows? You may just be able to build up something that not only lasts, but can carry all the talented people in your network along with you.