Ain´t it the truth…the devil is in the details! I have a friend who´s starting a business with a partner. My friend has no funds, but provides the talent & is a draw for clients. The two have formed an LLC, but have no operating or member agreement. When I ask questions like: Who will keep the records for the required (in his state) annual report; do you have to pay franchise tax; are you insured; are you going to file your federal taxes as a corporation or individual; how much compensation will each of you get and how will it be distributed; what duties are expected of you for that compensation; or can you work for other entities simultaneously, I am met with an angry, irritated stare. That would be no big deal except that my questions are in response to his request to help him get the business off the ground well.
His response is not that uncommon. It sounds exciting to talk about having your own business. You´ll be in control, you can decide when you’re going to work and when you´re not, you can create the kind of product you´d want to buy, you can be the boss you´ve always wanted to have, and you can make a lot of money…. And all of that is true.
What´s also true is that it make take a long time to make a lot of money and when you do, it will be subject to self-employment tax of 15% right off the top of your profit or to an employer social security, medicare, and unemployment contribution. Then there´s income tax that has to be paid in quarterly estimates eating into your cash flow. If you are in a service business, you will have to make some tough choices regarding accepting business vs taking time off, how hard to push when you´re collecting unpaid invoices, when to hire, and when to fire. And inevitable market or regulatory changes and/or competition will force you to innovate to remain relevant and continue to profit. While it may sometimes look like it from the outside, coasting never lasts long.
So while it feels really good to say you´re starting your own business, the actuality of being in business may turn out to be less appealing. There is no way to know whether you are well suited to the entrepreneurial world if you choose to ignore the details of running a business. The best way to ensure success, is to be willing to look at both the good and the bad, outline the details of agreements up front, negotiate in specifics, make deliberate choices in which you decide how much you are willing to lose in the short term in order to gain in the long term.
I mention this because it is the same with a workout program, a dietary lifestyle, a friendship, or a relationship – the devil is in the everyday reality of the details.
I love to swim. A couple of years ago, I swam 3 or 4 days per week for about a year-and-a-half. This meant getting up early to beat the other lap swimmers to the pool, jumping in cold water before I was even awake, and dealing with a less than friendly facility staff. For many months it was worth it. Then the pool became so crowded I always had to share a lane. That was enough to take the joy out of it for me. That one little detail made me dislike the effort it took to pack my bag, make the drive, postpone coffee and the newspaper to the extent that I quit swimming as a workout.
This isn´t uncommon. According to Statistic Brain, 67% of people with gym memberships never use them. The question is, do those gym members find a different workout and stick to it or are they lacking a commitment to finding a workout that fits them? That commitment is the critical detail that will affect their health.
Deciding to give up dairy because it makes your face swell may sound easy until you realize how many foods you eat with cheese. Planning to give up sugar may seem like no big deal until you start reading the labels on your favorite cereal, protein bar, chili seasoning, or chicken stock. Limiting carbohydrates may sound easy until you realize that all fruits and vegetables are carbs. Then you have to determine whether you really want to limit all carbs or just specific types of carbs.
Obviously, you can never know everything up front and you can over think anything to the point of paralysis, but in general exploring the details up front leads to more informed decisions. When I make an informed decision I find I can accept any resulting negative consequence, failure, or difficulty with much more ease. Accepting undesirable results as a risk I signed on for, allows me to let them go immediately because I am at peace with my decision. I don´t have to be at peace with the results.
Since we can never control the outcome of anything with certainty, being at peace with our decisions can reduce the stress in our lives. We just have to be willing to stare down that little devil – the details.