Owning a Small Business

It's all about eking out your cash flow, robbing Peter to pay Paul, trying to collect your receivables so you can pay your payables. Every government report you are required to complete subtracts from your bottom line. Every insurance policy you must carry costs money for a bet against yourself. Debt is terrifying. It limits your flexibility to control expenses during product cycles, economic downturns or in the face of competition from larger, more diversified companies. It increases your cost of goods sold. Without borrowing, your business probably will never get out of the starting gate. Even with it, failure is common. Most small businesses fail within the first five years.

If you are sued, and this is a litigious society, you retain a lawyer. This is expensive. It costs money you will not see again, no matter the outcome of the suit. If you lose, you and your business could well end up bankrupt. If the suit is covered by one of your insurance policies, defense will be handled by the insurance company, which usually will settle, no matter how frivolous the complaint, in order to control cost. This opens wide a door to those adept at "gaming" the system.

Common wisdom assumes persons who own their own businesses are wealthy. Sometimes they are; however most small business owners struggle. They work long, arduous hours at wages no union worker would accept; try to maintain compliance with a regulatory maze larger companies have entire departments to deal with; and carry their business problems home every night. There is no shutting the door on the office for the small business owner.

Why do it? To be your own boss. To be self-sufficient. To have at least the chance to do things your way. To work at something you actually enjoy doing.