07/ 19/ 2004
by Jim Sapp
Starting and building your first company can come with increasing amounts of stress. The stress level will be directly related to many aspects of your life -- personal relationships, your marriage, your spouse's comfort level with you leaving the corporate world, starting a business or pulling money out of your savings that was intended to be a nest egg for home remodeling.
Besides your spouse, you may have challenges with your children or parents, legal issues or other challenges -- not to mention the fear of starting your first company. All kinds of challenges can cause you a high level of stress, even new medical insurance coverage that is not as generous as your last policy. Every new business owner has different challenges, and all new business owners will experience some level of stress. How you deal with it is critical to your personal success and that of your business.
You will have some level of stress, but you can deal with it if you follow the steps below:
- Settle issues. First, settle as many other issues in your life as you possibly can. If you're involved in a legal issue or a tax audit, try to wrap it up before you head into the new business. You cannot sidestep these issues; they will come back to haunt you in your busiest time.
- Avoid creating new stress. Don't start building a new house, remodeling or moving. Relocating is ranked as one of the highest stress-causing agents. If there are projects around your home that will require a large time commitment, finish them before you start the new business. You need to focus your mind and your time on your business, not on remodeling or moving.
- Talk with your spouse. It is imperative that your spouse understands the total picture of starting a new business. The personal financial risk is important; however, the time that you spend away from your family can be an even bigger stress. You may be traveling more, working nights or weekends, and spending less time with family. This can be very difficult if it's not openly discussed and planned ahead of time. Sometimes a spouse can begin to resent the new company. You can minimize the stress for both of you through good communication, not missing important dates for family events and regular one-on-one time with your spouse, such as having dinners together at your favorite restaurant or doing your favorite hobby together. Another way to decrease stress and assist you in dealing with challenges is to share work issues with your spouse. This keeps your spouse informed and many times can give you another perspective on the situation. The important thing is to discuss the business up front -- how it will affect your marriage, how you will handle the changes and how the business can benefit your family in the long run.
- Talk with your family. Have a family meeting to discuss the changes that will affect them. Most children that are older than 10 years old are interested in what you're doing, and they can be much more supportive when they understand the reasons for change. You should also explain to your parents, and even close friends, that the new business will take a great deal of your time for the first several years. Be sure that your family understands that there may be financial sacrifices as well, such as taking fewer family vacations or waiting a few years before buying a new car. Children, especially, need to understand this and they can be very understanding. My 10-year-old son once went to his "hidden lock box" and gave me $20 after a discussion like this. Building your own business can be a way of mentoring your kids.
- Plan your finances. The more planning you do for the new business, the less stress it will generate. Do the testing and research for your service or product, and plan every detail of your first year. Things will change, and you will have to adjust; however, having a plan and having the funds to get through is imperative. The single biggest factor is cash. You must have good projections and understand that the first year's cash flow will likely be negative. Having the cash reserves to make payroll, to pay an important vendor or to pay the rent is crucial during your first year.
Any one of these issues can take a great deal of time to work through. Start now. Begin discussions with your spouse, family and friends who may be affected by your new responsibilities as a business owner. Having external situations resolved will give you more energy, drive and fortitude to cultivate your company with less stress and more profits.
JIM R. SAPP is an international business consultant and speaker with more than 25 years experience as a business owner and entrepreneur. He is founder and director of the American Small Business Institute, and recipient of both the "Entrepreneur of the Year" award and "Blue Chip Enterprise Award" for inspirational achievement in business. His book Starting Your First Business is available from www.sappbiz.com or by calling 800.570.5436.
