To think that not everyone is cut out to be a “business owner”

[Ffwithfu]

I’m probably being unreasonable but run a business that supports small business. Over lockdown I’m sorry to say that I’ve seen so many people that have no fucking clue thinking they can “start a business”.
From those who have no skills, to those who have done no actual research into the market. I’m fed up with the world and his wife thinking they can “run a business.

I agree to a point but many successful business owners have very little business knowledge and make it work (at least for a time). You can have all the knowledge and put all the time in but if you are not offering something different and unique then you are swimming up the river.

Sophia Amoruso has encouraged many millennial women to start a business but had very little knowledge at the start and has made some very poor choices over the years. She was smart enough to jump ship before the business fell apart.

Agree. I own a small business (a franchise so a proven model which is a bit different) and it’s been the toughest learning curve ever. Come across many who just don’t have a clue. Including one the other day who was deliberating between becoming self employed and setting up a registered charity because if it was the latter “you get money upfront”

@WhyDoYouAsk

The only benefit is that I dont have to ask permission for doctors appointments or holidays, I just check my calendar and work round it. And if I succeed, I'll be able to sell, not for a lot, it would be our pension.

But it's like buying a house instead of renting. It takes more investment and it could lose value and I'd be trapped working till I die without a pension.

The problem is that people think they'll earn what they bring in but you have to pay for all the overheads before you get paid yourself. Huge numbers fail and most businesses earn surprisingly little. I had someone come up on my Facebook feed saying how could she boost her earnings as she wasn't doing very well - she'd been in business a month! That's totally unrealistic. My accountant's take was loss first year, break even second year, profit third year and that looks pretty much right to me. Even the established business I took over needed investment and, thanks to Covid, will also end up following this pattern.

People start their own businesses for lots of reasons - redundancy, only way to work (e.g. musicians), unemployable etc. Some do very well (top 10% or so) but the vast majority earn less than minimum wage for the hours they work. But from the outside it can look easy. Both my parents were self employed and I promised myself I'd never go down that route. But I now run 4 businesses, so that worked out well!

Used to mentor small businesses and so many owners had no idea about most aspects of actually running a business.
Plus too many were doing it because it was something they loved or they wanted to work flexibly - nothing wrong with that but it’s not enough if there is no need for what you are offering.

I think the main point the OP is making is that many people don't do even basic research before starting a business. I was considering it a few years ago, so I got on the internet and started researching things like legal requirements, marketing, insurances, demand etc. and ended up deciding that it really wasn't for me.

If I hadn't done that research, I may have set up the business which I'm pretty sure would have fallen apart before really getting going in the first place. I tend not to do anything major until I teach myself at least a bit about it, e.g. if I want to try a new hobby, I check it isn't going to cost me more than I can afford, or trying a new sport that I'm really not physically up to it.

I think the key to running a business is to understand what you are selling inside out, being very very good at networking, continuous learning, seeking advice (and paying for mentoring when need be) and employing the right people.
There's luck involved yes, but having a good eye to the future is critical.
Don't underestimate the value of a management accountant. Find a part time one if need be. They nail your forecasting and provide insight. Most small businesses don't bother and it's so important.

Conversely I run a small business and, when networking, am always surprised at the number of other businesses that 'support small businesses'.

SEO, marketing, content management, financial savviness, SM gurus etc.

Most if them don't actually do anything... they just talk up whatever it is they do, making it sound essential, then usually don't understand the needs and/or limitations of many niche enterprises.

And I too know one such expert who has bad mouthed me in various network meetings. I don't understand the power and immediacy of SM, apparently, and will lose many clients because of it. What she fails to understand is that every time she does this her audience re evaluate her and find her lacking in confidentiality, professionalism, courtesy and the basic skills of running a small business... mainly of not being at all likeable!

Maybe a rethink over the Christmas period OP! How not to alienate people by dismissing their questions when helping them understand is what they pay you for?!?!?

Well I'd say a mix of yes & no. I do know a lot of people who are great at what they do (eg craftspeople) but really crap at the business side (no idea how to price their work for example). Yet many people who start in this place can with time run a decent business that won't set the world alight but will keep them steadily employed. They often do need some quite basic help plus signposting to affordable places to buy in the skills they don't have.

I don't know if anyone else remembers the Enterprise Allowance Scheme back in the 80s/90s? You had to put in £1000 capital then got £40 / week paid to you for a year, help writing a business plan, and lessons about things like basic book-keeping.

It was often considered a failure because a lot of the businesses didn't succeed (inevitable - lots of new businesses do fail!), and the majority became sole traders or micro-businesses. But actually I think it was a genuinely useful scheme to encourage self employment.

Ex-H went on it & however many years down the line both he & I are business owners not 100% due to that (neither of us were cut out to be employees, nor indeed life partners!) but it definitely helped.

So, if they are coming to you for advice, as that's what you do, surely it's still a winner for you regardless of whether they'd be crap or not, as they'd be paying for your services?

Of course you are correct OP.

DH and I run a business and it is very hard work. We are both qualified in healthcare but I started life with a business degree and worked in multinationals. I therefore have the key marketing and finance skills.

We applied for a government support loan recently (80% guaranteed by the government to help businesses recover and grow post Covid). We complied with all the requirements and were approved - but the bank still insisted on a complex 3 year business plan with 3 year detailed financials. Now if you were a small business such as a pub or restaurant and were depending on this loan to put in place all the Covid items, you would need to employ a management accountant to do the bank form. I really think this is insane.

But it takes skills that are not as valued in society to run business well, no one would decide they could be a dentist overnight and yet everyone thinks they are a sales and marketing expert.

Well sure, but everyone has the right to try if they want to! There is a lot of really good support out there for entrepreneurs and people trying to start up businesses (even with no experience).

People aren't always good at everything. It would be sad if that put people off trying new things and learning. If you are smart enough to recognise where you need support for your business and buy it in (eg admin support, marketing, finance) then it may all work out well!

Not all successful CEOs have had unblemished careers - a lot have started companies that failed, have made mistakes, have learned from these and started again and THEN flourished.

I wouldn't be so quick to write people off!

I don't think everyone is cut out for it, but do think my people could probably run a business in an area that they've already got relevant experience if they accept they will need to outsource some processes.

I also think the be your own boss myth is quite damaging as it's too often sold as the solution to everyone's problems, and I often wonder if that's partially why MLMs have no trouble recruiting people with neither the skills or knowledge to run a business to their pyramid-shaped enterprises that are totally not pyramid schemes.

Not my people, many people

It's a bit dangerous to talk about the EA Sadik

I signed on before I started my business so I could access the New Enterprise Allowance. After a few false starts, the first 3 JSA mentors I had knew l as than I did, I was teamed up with a lovely woman who has just completed the NEA advisor training. We worked together on her notes, made extensive check lists and went through the system together. It helped us both understand what the NEA actually is.

Discussing it here at the time there was a lot of disbelief ... the fact that I was being paid JSA then NEA whilst being advised and actually setting up my business, making money in my business, absolutely horrified some posters. I was, they declared, committing some kind of benefit fraud!

But I'd recommend the NEA whenever it is running. Basic it may be but it covers everything a newbie needs and is a voice on the end of the phone when needed, for free.

I hadn't heard of the New Enterprise Allowance Curious - glad to hear it's still running.

OP I would agree that lots of people aren't cut out to be business owners, but I think that many of them can learn. I live in a county with very high rates of self employment / small businesses. I don't think there's anything particularly special about the population here, but there is a culture of self employment & business start ups so people are just more in the way of it.

Also, I think it is just as true that lots of business owners / self employed people aren't cut out to be employees!

It sounds like you're in the wrong job if this annoys you tbh.

It sounds like you're in the wrong job if this annoys you tbh.

Exactly!!

Probably not, but why does it annoy you so much?

It's really hard. I went from being a director of mid sized practice (worked my way up from junior) to running my own sole practice and it's hard going and definitely not for everyone.
The change was for personal and family reasons and in lots of ways I wouldn't do it again if given the choice, however it's paid dividends this year with the flexibility I've had to work this year.
I couldn't do it with out support which is why I'm heavily involved in my professional institute and also think it helps having a defined professional role as that shapes the business. There is so much stuff I could leave to others before even though I had a management role, I now have to pull all that together myself, research, manage, organise etc

@Mamanyt

YANBU in the least, and I've seen start-ups fail time and again. I probably could, but I have a strong background in management and basic bookkeeping, which is why I don't want to do so! Far too many people are thinking "I want to be my own boss." With the exception of a few dictators, that isn't even a thing. If you work for a company, you have one boss. If you own a company, every person who walks through your door is your boss. I tried to think of some business where you are truly your own boss, but even farmers have bosses...cattle and sheep and hens, O MY!!!

It’s clear you don’t run a business because this simply isn’t true.

In my experience, 50% of people start businesses because they have a good business idea or an in demand skill, the other 50% because they are unemployable.

My husband was completely clueless when he started his business. It started on a bit of a wing and a prayer. He's a very amiable character and made friends with other companies who needed the service he was planning to provide. They gave him some guidance and the rest was a huge blag.
He's very successful now. Despite not having properly researching the market (it didn't really exist to research it) and a few snotty comments from people like you.
I love bumping into those "experts" now who ask "oh how did that little venture turn out?" And seeing my husband beaming.

AllTheUsernamesAreAlreadyTaken

I agree- and everyone has to learn somewhere.
We don;t all have business degrees.
When I set up my small business I was pretty clueless, knew nothing about tax, profits, I made mistakes, but I learned along the way.

OP I would suggest you are in the wrong line of work if you feel so hostile and disparaging towards the people you are trying to "help".

@WhyDoYouAsk

It's annoying because of the trail of destruction they may leave behind. They'll probably have unsatisfied customers, they may have wasted the time of suppliers and advisers. They may not declare their profits/pay their taxes. They may not pay their workers through payroll, or may not pay them at all. They are taking business away from proper businesses, threatening their survival. They may be risking the health/lives of their staff/customers. They may be risking their staff/customers livelihoods if they don't have the right insurance.

If they are paying the likes of the OP to support them, these things surely won’t happen.

Depends if they actually listen with what their "advisors" tell them to do and then actually do it.