Business Bondage

AAA

DEFINITION of 'Business Bondage'

A state of feeling inexorably intertwined or even imprisoned by your business. Business bondage is frequently experienced by new entrepreneurs and small-business owners. Many factors can contribute to this feeling:

• lack of experience
• financial stress (insufficient capital, late- or non-paying customers, high-interest credit, etc.)
• macroeconomic events (national economic issues, financial market fluctuations, etc.)
• inability to lead or delegate tasks
• inefficient or inadequate business systems
• lack of experienced help/staff
• increase in the competitive environment

INVESTOPEDIA EXPLAINS 'Business Bondage'

According to the Small Business Administration, business startups fail at a rate of roughly 50% within the first five years. In order to make a business succeed it requires enormous financial, emotional and physical commitment by the owner(s). The flip side of that commitment is the necessity to find life balance or else risk succeeding at work but paying too high a personal cost.

RELATED TERMS
  1. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
  2. Bootstrap

    A situation in which an entrepreneur starts a company with little ...
  3. Entrepreneur

    An individual who, rather than working as an employee, runs a ...
  4. Startup

    A company that is in the first stage of its operations. These ...
  5. Self-Employed

    A situation in which an individual works for himself or herself ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. 9 Ways To Improve Your Credit Score ...
    Credit & Loans

    9 Ways To Improve Your Credit Score ...

  2. 7 Weirdest Things You Can Buy With Rewards ...
    Credit & Loans

    7 Weirdest Things You Can Buy With Rewards ...

  3. Essential Tips For Would-Be Entrepreneurs
    Entrepreneurship

    Essential Tips For Would-Be Entrepreneurs

  4. I Want Christmas To Be Debt-Free
    Budgeting

    I Want Christmas To Be Debt-Free

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center