9 Scary Truths About Starting Your Own Business
Starting a business can be thrilling… and downright terrifying. If you’re looking to start something new (or maybe you already have), read on before you get too far down the road and create a longer list of regrets.
1. You’re going to have to pay taxes.
You think paying your taxes now is hard? Just wait until the government wants even more of your money. A good rule of thumb is to set aside 25% of your income each month in a separate account that you don’t use for everyday expenses.
When you work for yourself, paying taxes quarterly is best so you don’t get behind or realize too late that you owe way more than you thought. Believe me, it’s not a fun experience.
And don’t forget to factor in taxes when you set your hourly rate. If you charge $40/hr, approximately $10 will go to taxes. If you’re tithing too, that’ll be $4 off the top, leaving you with $26/hr. What are you worth?
2. You’re going to fail.
Someone won’t like your work or your product. You’ll lose the client before you even send the proposal because your price is too high or the timing is off. A word to the wise: no one died, you’re gonna be OK.
Consider failure an opportunity to tweak what you’re doing and how you’re doing it. As an editor, I’ve learned to appreciate feedback from clients. It helps me understand their needs better and refines my skills. The reality is, if you’re not willing to fail, you’ll never get very far.
Note: people are way more gracious than you think!
3. You’re going to have to put yourself out there.
Send the email, post the blog, connect with colleagues and friends on LinkedIn (unless you still work with them at your 9-5), and share that reel on Instagram. At minimum, start by telling people what you actually do!
But remember, you don’t have to do it all. I built a business posting minimally and sending approximately *zero* marketing emails. So, what worked for me? Connecting with other writers, client referrals, and owning what I do when people ask.
4. It’s (most likely) going to be a slow process.
I decided to start writing almost ten years ago but didn’t go full-time until about two years ago. Your journey might be a lot faster, or maybe it will never really get off the ground. You won’t know until you start.
5. You will wear many hats.
Marketer, bookkeeper, social media manager, administrative assistant, janitor… oh, and you’ll need to do the actual work too.
Maybe one day you’ll be able to hire an intern or someone to manage your calendar, but if you’re just starting out, you’re going to be doing it all. On the bright side, you’ll know the ins and outs of your business. Unfortunately, you’re going to have to clean your own toilet.
6. People won’t understand what you’re doing (or why).
This is especially true if you 1) have an obscure or niche business, 2) are working multiple jobs to make ends meet, or 3) don’t know what you’re doing or how to explain it.
My best advice is to craft an elevator pitch. In a sentence or two, what do you do? Depending on your audience and who’s asking, prepare a few versions to pull out of your back pocket in 10 seconds or less.
“I’m a writer.”
“I’m a writer and editor specializing in content creation for Christian authors and organizations.”
“I’m a writer and editor specializing in content creation for Christian authors and organizations. I edit and ghostwrite, publish books, and provide marketing services.”
Being direct and confident will only help your cause. Those who are interested in knowing more will ask.
(Make sure to check out Ali’s Bold Journey Interview for more on what it’s like being the only one in the room.)
7. Your income will be inconsistent.
Some months will be high, and others, you’ll be tempted to look for dog-walking jobs. Try setting aside money each month to prepare for slower seasons. One trick that has worked well for me is depositing all of my income into a savings account and then paying myself a budgeted amount on the first of each month.
You may also find that your industry has busy and slow seasons, so pay attention and prepare accordingly. This could look like additional savings or establishing new offerings for slow seasons (Ex: Are you a wedding caterer mostly busy in the warmer months? Consider offering specialty baked goods for pick up during the holidays or discounted rates to former clients for smaller events like birthdays or baby showers).
8. It can be a lonely job.
Chances are, you’re not going to have co-workers… At least for a while. Even if you are an introvert who thrives on working from home, days can get long. Working “off-site” at a coffee shop can help, but try to find like-minded people and other small business owners to connect with once and a while. Talking shop and having someone to bounce ideas off of can be a game changer.
Hint: Join Create / Connect for an opportunity to build your small business community!
9. Paperwork.
Maybe this goes without saying, but you’re gonna have paperwork to deal with. Business licenses, bookkeeping, taxes, and even the everyday stuff like emails and scheduling.
My two cents? Don’t put it off. The longer you do, the longer it will take and the more you’ll hate it. You also risk losing clients and money due to missed emails, late fees, and spending way too much time sifting through 12 months of bank statements so you’re not late on your taxes.