Despite the relatively high risk involved in starting a small business, the potential for a rewarding career drives thousands of Americans to start their own enterprises every year. While specific responsibilities vary by industry, small business owners generally have to perform a variety of duties—duties that are usually carried out by several employees in an established business.

Even after the first couple of years of operation, small business owners can expect to perform many core managerial duties, including hiring employees, handling finances, purchasing inventory, coordinating marketing strategies, and ensuring the business is appropriately licensed and compliant with regulations. As such, versatility and a solid work ethic are absolutely essential to entrepreneurial success.

At first, small business owners can expect to work long hours with little pay—in fact, it may take years before some see a profitable return on their investment. Moreover, the majority of new businesses fold within the first five years, so the potential for failure is high. With that in mind, however, successful small business owners benefit from a lucrative, self-directed career path as well as a high level of personal job satisfaction.

Becoming a successful small business owner involves a combination of business acumen, work ethic, and a small amount of luck. While many successful small business owners have little business training, this isn’t to say some formal education isn’t helpful. Given the complexity of running a business in today’s economic environment, some college training in business management is advisable.

In addition to formal training, there are many non-profit resources available to help those who want to start a small business. The Service Corps of Retired Executives is one such organization that offers free advice to budding entrepreneurs. Many small businesses fail because the owner was not equipped to deal with the pressures and details of owning their own business. Thus, receiving specialized training in how to run a business may make the difference between success and failure.

Small business owners always take a chance when they start their business, but most of them wouldn’t have it any other way.

Given the extreme spectrum of financial outcomes for small business entrepreneurs, ranging from bankruptcy to multi-million-dollar buyouts, career outcomes vary immensely. Most small business owners start out slowly, earning back their initial investment over the first couple of years, then gradually approaching six figures as their business grows. Those who operate multiple branches within a small region or even a single very large business or firm can make upwards of a million dollars annually. Finally, the success of a business is dependent upon market conditions, so it’s important to evaluate the market prior to starting a new enterprise.

Cafés, restaurants, and bars/lounges all fall under the umbrella of the restaurant industry, and are all popular choices for entrepreneurs. While the challenge to maintain a customer base is much greater relative to other industries, the rewarding nature of the work environment balances out the risks.

Most starting restaurateurs are deeply involved in the running of their business. They may take care of the finances, cook the food, and serve customers. Others may choose to hire employees to assist in the day-to-day operations of the business, but these hires usually come after an establishment has gotten off the ground. Restaurateurs generally drive the whole process from conception to execution, so a deep understanding of both the culinary and business arts is essential.

While many of the businesses that sell consumer goods are national chains, small businesses still carry a variety of products in sectors under-served by national chains. The decision to open a small business that sells any sort of good is influenced by the tastes of the entrepreneur as well as the demand for a specific kind of good in a local or regional market.

Small businessmen usually perform the majority of tasks required to operate a shop, at least in its initial period of operation. These tasks may include balancing the books, designing the store layout, ordering inventory, managing marketing campaigns, and simply staffing the store during business hours.

Small businesses offer a variety of services that are consumed by Americans on a day-to-day basis. These shops include salons, barbers, cleaning services, temp agencies, and event planners.

Given the admittedly wide range of services that can be provided, it’s difficult to provide a monolithic description of how a service-based small business operates. Nevertheless, effective communication with the customer is key to delivering optimal results, whether the service is a haircut or a 1000-guest wedding.