MONEY & ENTERTAINMENT

It is the dream of every person to be independent, not to have bosses, not to give account to anybody. You have some money, you have bold ideas, you have time and energy, and what else do you need to start on your feet? Many times we tend to see too much the romantic part of the situation: you think about what original promotion you will do for your new business, but you forget about the tones of authorizations you need to obtain, for example.

You shouldn’t be discouraged and you shouldn’t be pessimistic, but everybody who has had success in business can tell you that, besides the competition and creativity part, there are numerous dark and exhausting sides, without which there wouldn’t be possible. You have to be aware of them to increase your chances to succeed.

Do I know well enough this field?
Yes, you have seen on TV or at someone you know that a certain type of business goes very well in this period. But did you read any market research? Did you make sure that in the town you want to develop your business there is enough space for you too, or if there is any demand for the product you offer? Do you know how to make orders, deliveries, brand registering, how to handle a complaint? Do you know where to find answers and counseling for the problems that may appear?

Advice: Even if it seems a waste of time, practice at a firm that is already solid in the field could open your eyes. We are talking about businesses in which you make a serious investment not about selling candies at a fair.

Am I prepared to face bureaucracy?
It is suffocating and it gets you to desperation, but you have to do this also. Taxes, insurances, author rights and all sorts of documents, they all can be major obstacles for a business if you don’t do them right.

Advice: Pay a consultant. They are people who spend their entire time handling papers and it is easier to ask for their help. You pay some money, it is right, but think about the time and the nerves you spare.

Am I aware about all the risks that I am taking?
If you invested everything you had in your business (not recommended), you risk ending up on the streets, or in debts over your head. Can you handle this stress? Or can you handle the monthly stress: will it work? Will I have orders?

Advice: don’t take more than you can bear. Even the ones with experience can do it wrong, what can we say about a beginner. Start with small steps, so if you fail, you don’t lose everything.

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Am I capable to handle the bank loans?
It is hard to start a business without loans. And the banks don’t want to know that you had to fire some of your employees or that because of the weather you didn’t finish a building in time. All they want is to receive their installments in time; otherwise the consequences can be very serious.

Advice: Read in detail the loan contracts and ask for explanations where you don’t understand. A lot of people make the mistake of reading them in a hurry and then they regret it.

Am I capable to take responsibilities to my employees?
Now you are no longer alone in the game. There will be people depending on your decisions and one wrong move from you will reverberate on them. You can’t get rid of people like a bad product. Are you ready to take such a responsibility on your shoulders?

Advice: Hire strictly the number of employees you cannot start without. Maybe you don’t really need a secretary, a cleaning woman, or a doorman. Or a parking valet…now, seriously, many of the small things you will have to do alone at the beginning. When you will have a huge firm, others will make coffee for you and will clean your desk.

Can I handle crisis situations?
A fire occurs, or there is a breaking and papers or products disappear. What do you do? You call the police, obvious! Ok, I will rephrase. What efficient measures can you take in these cases?

Advice: Always keep copies of the important documents and of the data base. Don’t leave everything in one place. Make sure you have all your insurances and invest in effective protection systems.

Did I estimate my expenses correctly?
The merchandise, the rent, the transport, the logistic, salaries… you would have where to gather the necessary money for a start. But besides these expenses there are other small ones that put together get to impressive amounts. Documents, timbres, taxes, insurances, bills, and many others. If you are not aware of all the costs, you risk seeing that you don’t have enough money to set off on the right foot.

Advice: If you don’t afford hiring a consultant, make a detailed list of all you need, even if it takes you two days and two nights. Don’t start with the idea "I should have money for the serious things, I will manage to deal with the others too".

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