You might be excited about starting a small business, and that’s great! I’m here to help! But first, I want to look at some reasons why you might NOT want to start a small business (and there are some).

Don’t get me wrong, I’m not trying to discourage you from starting a small business by any means. I think that’s a great idea..however, not in every case! And you’ll see why.

Now the purpose of this is to save you from any unnecessary hardship and struggles. I’ve seen some people with very successful small businesses, and I’ve seen those who struggle, and their life seems somewhat harder than it might possibly should be. I’ve also made some of these mistakes myself over the years, and have struggled or suffered because of them as well.

So here are some things to look out for before starting a small business. You might want to reconsider starting a small business if any of these are true:

1. You are trying to get rich from a small business (or get rich quick)

So number one: do not start a small business in order to get rich or as a get-rich-quick scheme, because it’s not how it works. Chances are, you’re not going to get rich.

You could be successful—sure, it happens—but looking at the odds, starting a small business is not something you do in order to get rich. Starting a small business needs to be something that’s going to fulfill something in your life, complement one of your strengths, or utilize skills that you have. It may also provide you with a certain amount of freedom from, perhaps, another potential job path (at least one that you were unhappy in).

However, it’s not necessarily going to make you rich, especially not quickly. If it does, (it’s possible), but don’t expect it to happen overnight. It’s going to take quite a while and lots of perseverance.”

So getting rich shouldn’t be your primary goal. Instead, the focus should be on success instead.  Let’s talk about success. Success can take many different forms depending on the person. It could mean living comfortably, paying the bills, or doing something you enjoy—perhaps even helping others.

However, the notion of getting rich, especially quickly, doesn’t align with the reality for small business owners. It’s not something that comes easily or instantly. While it’s not impossible, the odds of becoming insanely rich from a small business are quite low. So, when starting a small business, it’s essential to have the right motives and a clear-headed approach. That’s the first thing to consider.

2) You are trying to duplicate someone else’s small business success

Alright, so let’s consider this as point number two: if you find yourself trying to duplicate or mimic the success of someone who started a small business, then perhaps starting a small business isn’t the right path for you. It’s crucial to recognize that numerous variables come into play when it comes to achieving success—or not.

Now, don’t get me wrong, it’s fine to imitate someone who is successful in certain ways, and learn from them. But what I’m referring to is specifically trying to duplicate or imitate someone’s successful small business.

Firstly, the successful individual may possess specific skill sets that you don’t. They might have been in the market at the right place and time, or perhaps a touch of luck favored their endeavors. So, whatever strengths they have, you may not share those same abilities, making it challenging to duplicate their achievements.

Furthermore, if you’re attempting to replicate the exact services they provided, especially in the same geographical area, you’ll encounter competition. The market demand may not be identical—after all, they might already have a loyal customer base. Even if they operated in a different location, the market dynamics could differ significantly from what you’ll encounter.

Remember, success isn’t a one-size-fits-all equation. What worked well for them might not align with your unique skill set. It’s not that you lack skills; rather, you need to meet the demands of your potential customers and adapt to the economic landscape. All these factors intertwine to determine your success, and it usually can’t be directly duplicated based on someone else’s achievements. Does that make sense?

3) This is your only source of income (and you have no savings or capital)

Alright, so the next reason you may want to avoid starting a small business is if you don’t have the capital to do it or if you lack financial stability. Let me explain. Starting a business often requires some initial capital, almost like an investment, depending on the type of business. But there’s another crucial aspect to consider: you don’t want to be constantly stressed about money. (I’ve been there before, and it’s no fun)

Imagine if your entire livelihood—your income, bill payments, and everything else—depended solely on this business. That’s a lot of pressure! It could seriously stress you out, lead to overreaching, and even burn you out.

The anxiety might keep you awake at night. And heaven forbid, if the business doesn’t generate the necessary income, you could find yourself in a tight financial spot.

I knew a family who was constantly stressed about money since their small business was the only source of income, and they really didn’t have any kind of financial cushion.

So here’s the key: pursue starting a small business if you already have some other source of income that provides stability. This is why investors often participate in ventures like real estate or franchises. They have extra capital to invest, and their entire well-being doesn’t hinge on the success of that specific business. (They also have disposable capital to invest)

And another point to consider, based on what I was just talking about, is that even if you are able to earn enough in one month or you’re making even more than you expected, you must also understand that with small businesses, your earnings could potentially be volatile. They might change, perhaps even dramatically, from month to month or season to season. Economic fluctuations or unforeseen events can impact your business. You just don’t know for sure, right?

So, you have to be willing to take a hit, so to speak. You need to have that financial cushion to be able to weather any storms. Consider this when starting your small business—ensure you have enough financial stability to handle the ups and downs.

In summary, protect yourself from massive headaches and stress by avoiding a situation where your sole financial support relies on the success of a small business. Having enough capital and a stable income elsewhere is essential for a smoother entrepreneurial journey.

4) You don’t have enough time

You don’t want to start a small business if you don’t have enough time. Consider the time commitment—it could be extremely large, perhaps even larger than what you’re currently working at your current job. Take that into account. It may require more hours than you want to work, especially if you have a family or younger kids who demand more of your time and commitment.

One small business family I knew, had both husband and wife working over 50-60 hours a week, each.

Understand that initially, you’ll likely have to invest more of your time in the business. Before you can delegate tasks to others—perhaps a manager or staff to handle day-to-day operations—you’ll be the one doing everything! So, time management is crucial when venturing into small business ownership.

5) You aren’t good at multitasking or managing a lot

That kind of brings me to the next point: if you are someone who doesn’t like to manage a lot of tasks or gets quickly overwhelmed. This is another crucial consideration. Depending on the business, especially in the initial stages, you may find yourself juggling multiple responsibilities.

You’ll need to handle various tasks simultaneously. So, effective time management becomes essential. Balancing everything—managing your time, tasks, and maintaining a good schedule—is key. Keep this in mind as you weigh your decision.”

6) Too much competition

Alright, the next thing to consider when starting a small business is whether there is too much competition in your area for the service or product you’re trying to provide. It’s somewhat self-explanatory: if there’s excessive competition—more supply than demand—you won’t make many sales.

So, you need to evaluate not only your own strengths but also what people want and what’s already available in the market. Identifying the real needs of your current market is essential for building a successful small business.

7) Not enough demand

On the same note, if there isn’t enough demand in your area, for your service or product, you aren’t going to get enough business. Only when there is enough demand will you be able to experience growth.

8) You don’t have a good idea

Next reason not to start a small business is that basically, you just don’t have a good idea, right? Not every idea is going to be a great one, even if it seems like it initially. What you think is fantastic might not align with what other people want or need.

Take the example of ketchup popsicles, for instance. You might adore ketchup popsicles, but truthfully, you could be the only person in the entire United States who enjoys them. Selling ketchup popsicles would be quite challenging—you’d be trying to market them to people who simply aren’t interested.

Finding a business idea with genuine demand is crucial. Sometimes people look at businesses that have already proven successful. However, as I mentioned in the last point, you don’t want to dive into a business where there’s excessive competition. Striking the right balance between demand and competition is essential. Keep that in mind.

8) You lack persistence

So, the next thing to consider is if you don’t have good perseverance or persistence. The reason for this is that building your business or achieving success and growth may take time. It requires continual effort and not giving up easily.

If you’re someone who tends to give up at the first sign of an obstacle or failure, then starting a small business may not be the best idea for you. Persistence is crucial—it means going at it each and every day, even when things seem challenging, until something clicks.

This is something I personally had to learn over time. Because it seems when you start that everything will be easy and golden rainbows, however it’s not, and there will be bumps.

And at the same time, it will take time to grow a small business. Sometimes probably more time than you even anticipated. And there will also probably be times when things are going up as well as down. So keep that in mind.

9) You are easily stressed out

I kind of touched on this before, but if you’re someone who easily gets stressed out and dislikes managing and handling a lot of tasks at once, then you could easily be burned out by a small business. Over time, you may find that you don’t enjoy it anymore.

Unlike in a larger business where someone else might handle specific tasks, in a small business, you’ll have to do it all. You’ll need to multitask—juggling various responsibilities. So, if you’re not adept at handling multiple tasks simultaneously, that’s definitely something to consider.

10) You might experience isolation

Alright, the last thing to consider—and this can depend on the type of business—is that you might experience social isolation. Unlike going to an office where you interact with coworkers (who may or may not be your friends), running a small business can be socially isolating. Especially if you’re involved in tech-related work or operate primarily online, you might find yourself lacking social interactions.

Now, if you already have a strong support network—perhaps within your family or among friends—you’ll fare better. But keep in mind that you’ll miss out on some of the typical workplace social interactions.

Now I am able to work more in tech since I have a larger support network and those close to me. But when I was younger, I didn’t have the same network, so my tech endeavors were a lot more lonesome.

So isolation can be a potential challenge, although as your small business grows and becomes more successful, you might actually meet a lot of people, which could be a plus. So, it’s not a black-and-white situation; it depends on the unique circumstances.

So these present some of the reasons why you might not want to start a small business, or that a small business wouldn’t be a great idea for you. Consider these things before jumping in, and try to reframe your mind if you are still committed. Best of luck!

Video: https://www.youtube.com/watch?v=0KL0ZbUPKUQ

Podcast episode: https://www.spreaker.com/episode/top-reasons-when-you-maybe-shouldn-t-start-a-small-business–60613106