The Pros and Cons of Starting Your Own Business
If you would love the independence of
starting your own business
doing what you have a passion
for, because
you dream of the
independence and financial freedom it will bring you...
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Those are of course very valid points, but along with that comes a huge increase in responsibility, and of course new skills to learn – and that’s just for starters. Here are some of the pros and cons of taking the leap to being your own boss:
Starting Your Own Business - Pros & Cons - FLEXIBILITY
Pro
You
call the
shots, so you get to decide how to spend your time – for
example,
if you’re a mom and you need to fetch and carry kids, no
problem
and nobody to answer to; and of course you can take as much leave as
and when you want to.
Con
It’s
easy to fall into a trap of not spending enough time doing your job.
You need to be exceptionally disciplined to make sure you’re
putting in what you expect to get out.
Starting Your Own Business - Pros & Cons - MONEY
Pro
You
get to
keep all the profits of your hard work, not just a set paycheck at the
end of every month. If you work hard and do well, you can really
generate an income for yourself that far surpasses a salaried worker.
Con
If
you decide
to slack off for a while, your income does the same. Also, your local
“receiver of revenue” (or IRS) is going to want you
to
share what you’ve worked so hard to earn, and of course you
will
now be responsible for all the company bills you never had to worry
about when you had a boss who did all of that.
Starting Your Own Business - Pros & Cons - POWER
Pro
Yes, you have it – you are in total control and make all the
decisions.
Con
You take the heat (literally) when you make the wrong decisions.
Starting Your Own Business - Pros & Cons - YOUR PASSION
Pro
I
can
honestly say that this is such a joy – to wake up in the
morning
and really be excited about your job! You know it backwards, you love
doing it, you love the environment you’re working in
– what
more could you ask for?
Con
You’ll
have to learn a lot of other skills, some of which may not be your
forte at all, because running your own business means you need to know
all aspects of it: sales, marketing, buying, production, finance,
accounting, research, trends, design, human resources… etc.
Starting Your Own Business - Pros & Cons - RECOGNITION
Pro
You can really make a name for yourself if you have a great product at
a great price with great service to boot.
Con
If
you get it
wrong, it could all go terribly pear shaped and your reputation will be
at risk, which would also make it difficult to re-enter the job market
if you need to.
So yes – owning your own business can be exceptionally rewarding and profitable, but you also need to be aware of the potential pitfalls. Do your due diligence before getting started, which will take some time but be well worth it. And make sure you have enough money… always over-estimate what it’s going to cost you, and have enough saved to tide you over for at least six months.
Good Luck, and have fun doing it!