Life is a set of problems. The funny thing about success and any form of progress that most people don’t understand and resist is that achieving more ultimately leads to having new problems in your life and/or business.
However, all this isn’t necessarily bad. As long as you’re going after the right things, you’ll also create problems you choose and ones you can deal with.
I, for instance, hustled my way to making money online, becoming location independent, leaving my country and moving to the one I want to live in, and becoming a full-time blogger.
Each of these brought a new set of problems. Earning money online, in the beginning, happened through freelance writing, which was quite the effort as I was answering my clients’ expectations and never knew if I’d earn enough next month.
Location independence goes with a lot of insecurity which can be stressful at times, but over time you learn how to adapt and actually build more discipline.
Then, going from freelancing to full-time blogging leads to new obstacles that anyone who’s not in the blogging world is simply not familiar with.
But that’s fine. You need to accept that’s part of the journey and trust your ability to solve every next problem.
Luckily, we can prepare for potential challenges in life and business. If you’re looking to become self-employed as soon as possible so you can live your best life and earn enough, then you need to be aware of the most common small business problems. Here they are:
4 Business Problems and Solutions
1. Starting the business
The first thing to figure out is how to start a business. Keep in mind that different rules apply to different countries. Your business model can vary too.
The simplest way to go about this is to have an online business, work from home (no office) and be a solopreneur. That’s what I did when I moved to the Netherlands.
Many people give up before they’ve even tried simply because they aren’t familiar with the process of starting a company. Do your research and even contact the right institution in your city via email or phone. Chances are, there are free seminars in your area for aspiring entrepreneurs so you can attend an event and get all your questions answered.
Registering the company is a pretty-straightforward process almost anywhere. You should decide on a name, describe your activities, and provide any other details that the Chamber of Commerce might require.
Here are some resources for you:
- How to Start a Small Business in The US
- 6 Things You Should Know Before Starting a Company
- How to Start an Online Business in 6 Steps
- 6 Critical Elements of Every Good Business Model
2. Managing your finances
Many business problems can come out of not managing your money right, so let’s talk about this too.
First, you’ll want to make sure you aren’t earning any money without paying taxes for it. The different types according to the IRS include income tax, self-employment tax, estimated tax, employment tax, excise tax. Learn more about them here.
Understand how these work in your country before you start your business. Then, hire an accountant.
I was thinking of skipping that step but I’m so glad I didn’t. Thanks to my accountant (who I found online and pay on a monthly basis) I don’t need to worry about missing any deadlines (that can lead to fees you wouldn’t want to pay!) or doing something wrong.
I simply send him all my files at the end of the month and at the end of the year, he organizes them, calculates everything and prepares my income tax return.
Accountants are experts in what they do, they know all about the rules in your country, and save you a ton of time. So whatever your business model is, you can benefit from one.
The next aspect of managing your finances as a business owner is to separate personal from business expenses. That simply means opening a business bank account and setting up a PayPal business account. This makes it easier both for you and your accountant when looking at the earnings and expenses each month.
3. Dealing with insecurity
Another one of the business problems you’ll face when starting a venture is the insecurity. As an entrepreneur, especially in the beginning when you aren’t earning much, you’ll have to overcome the fear of failure, the desire to give up and go back to your 9 to 5, the loneliness, the hopelessness, and the confusion.
Many business decisions will need to be taken, some of which can determine the direction of your company in the future. You need to accept that things will change and you will feel uncomfortable at times, but that’s part of the growth.
Some situations might require a lawyer too. That includes handling employee issues, negotiating the sale of the business, protecting yourself against lawsuits and more.
Read also: How to Recession-Proof Your Business
4. Wanting to do it all
What happens when you’ve built a business from nothing and end up working more than you did at your regular job? You’d try to do it all because only you know how to take care of all aspects of the business but at the same time, you’ll wonder why you aren’t growing.
Here’s the time to outsource. You need to free your time so you can rest and do the work that only you can do as well as strategize. For the rest, you can use tools to automate processes or get people on board (contractors or full-time employees) to help you out.
If you try to do it all, you won’t have the energy, focus or motivation to take the right next steps and might end up being stuck.
These are just 4 of the major business problems you might run into if you want to become your own boss. Make sure you prepare for these in advance and make your journey down the road easier.