A 2015 State of Small Business Report, which surveyed more than 1,000 small business leaders, suggests that small-business decision makers are increasingly more optimistic about the state of the U.S. economy. However, that optimism doesn’t mean small-business owners are without concerns.
What if I don’t have any clients? Taxes are due, again? Is my business going to make it next year? These are all thoughts going through a small business owner’s minds, usually at 3 a.m. Here are the three biggest concerns weighing on the minds of salon owners.
The Big One—Failure.
The fear of failure is always lurking in the back of your mind when you own a business. The percentage of small businesses failing is way too high for business owners not to be concerned about this. You start to doubt yourself even when you are successful, because chances are you’ve known someone who has had their business fail. Some business owners have another job to supplement their income, but for most people their business is their only income.
Cash Flow/Staying afloat.
Let’s face it owning a business is not cheap. Most people assume you’ll be more profitable when you aren’t splitting earnings with an employer, but small business owners know that isn’t true.
What about taxes? You’ve got your state, local, and self-employment taxes and that doesn’t even include if you’re lucky enough to have employees and the taxes associated with that. You have to be 100% committed to putting away money every month for your quarterly taxes, as well as your end-of-the-year IRS tax. And, let’s face it—that isn’t easy. What about taxes on services, retail services, and retail products? In your first few years in business, your money is dwindling by the day. Which brings us to our next fear, the unknowns.
Being in a service/appointment-based business can be scary; you don’t get paid for 8 hours of work, even if you work 8 hours. You are paid based on the appointments you have scheduled (which hopefully is a ton)! Week-to-week your business could be entirely different, and it’s not always easy to prepare for that—mentally or financially. You also have the extra unknowns, such as: what if you have to purchase new equipment suddenly? What if your landlord calls and raises the rent effective immediately?
The long and short of it is: don’t let the fears get you down! Owning and running your own business can be incredibly rewarding and have its perks. You get the freedom to create your own brand, work flexible hours, and build relationships with your clients. If you continue to work hard with your current clients and bring in new clients on a constant basis to ensure that your schedule is always booked, your business will reap the rewards.