Why does a person become a business owner? They do not want a boss, want to control their own destiny, want independence, want to choose where they live and what hours they work, passion and belief in their product and or services, are seeking self fulfillment, believe they can do it, apply creativity, pursuit of wealth, pursue goals and ideals, start with nothing and grow the business, etc.
The owner of a business enterprise accepts the risk of ownership and applies hard work, determination, perseverance, initiative, marketing, creativity, organizational and management skills to start, operate and grow their business. They must continually analyze situations and make correct decisions. Priorities and short term/long term goals must be set.
Risk/Reward of business ownership: The business owner has the risk of business failure and possible bankruptcy or alternatively may have the reward of extreme wealth. The business owner does not receive employee benefits such as pension plan, half of Canada Pension paid for, extended medical coverage, paid holidays and vacation, etc. and must provide all these benefits out of business profits.
The two objectives of a business are to satisfy the customer/client and to make a profit. Make a profit means providing adequate personal income to meet annual lifestyle expenditures and in addition, sufficient savings to meet retirement needs and goals.
A successful business owner will probably become self-fulfilled with their working life.
Thank you’ s, repeat customers and referrals are invaluable. Publish testimonials.
Always maintain a positive attitude with clients/customers. Referrals are extremely important.
The first few years of a business will take an inordinate amount of effort and marketing but it will be worth it. Consider a Mission Statement for your business.
In some situations the business owner is building goodwill and other assets that are saleable on their retirement. This is a part of their retirement financial planning.
Self-employment is a lifestyle, not a job. Time must be set aside for family, leisure, hobbies, healthcare, etc.
Remaining current on Canada Revenue Agency payments such as payroll remittances, HST installments and income tax is extremely important. The accounting records must be up to date.
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What are the character traits of someone who seeks to own a business?
An entrepreneur, strong desire to be independent, pride of business ownership, confident, risk taker, adaptive to change, willing to learn, hard-working, self-starter, focused, innovative, aggressive at certain times, ability to analyze information and make correct decisions, networking ability.
Must be able to persevere through difficult times. The “can do” attitude.
Strive for Excellence.
Quote by Roy T. Bennett: “ Never stop dreaming,
Never stop believing,
Never give up,
Never stop trying,
Never stop learning.”
Article written by John Costen, CPA, CGA, CFP
A great blog! it is super insightful to read this as a business owner as it brings attention to the sometimes overlooked parts of owning a business!
Excellent blog post John, insightful and clear writing. The final quote provided is quite inspiring!