For many employees, the lure of becoming their own boss is something that often crosses their mind. But whether you plan to strike out on your own as a freelancer or have ambitious plans to launch a rapid growing enterprise, there are many different factors to consider before you hand in your notice and get started on the next phase.
Are you guilty of putting on the rose-tinted glasses when it comes to business plans? Or maybe you’re focussing on the challenges so you’re missing out on opportunities? It’s important to take a balanced view of becoming an entrepreneur so that you’re not only well informed about the process but give yourself the best possible chance of success and realising your dream. If the idea of becoming your own boss has been in the back of your mind, check out these pros and cons to weigh up the options.
The advantages of starting your own business
It’s the advantages of being an entrepreneur that draw people into looking into the possible routes to starting their own business. Among the top pros are:
- You’re in control – If you feel like your current employer doesn’t always make the right decisions or that greater risks need to be taken, being your own boss puts you entirely in control.
- It’s more flexible – From setting your own hours to selecting the clients you work with, having your own business provides you with greater flexibility to fit around your lifestyle and to pursue your interests.
- Boost your job satisfaction – Even if you love the field you currently work in, most entrepreneurs will agree that they derive more satisfaction and sense of achievement when it’s their business they’re growing.
- You benefit from increased profits – When you put the effort in as an employee you don’t always benefit, the company does. But whatever profit you make as your own boss is yours, whether you choose to spend it on yourself or plough it back into the business.
The drawbacks to consider
Of course, being a business owner certainly isn’t plain sailing, there are drawbacks to consider too:
- It can feel lonely – Particularly during the early days of starting a business, it can feel lonely and isolating, as well as daunting. Finding a mentor that can guide you or joining a club of likeminded individuals can help provide you with extra support.
- You need to be motivated – Are you a self-starter? Do you have the drive to work? If naturally your style of work is more laidback and lax, you might struggle when it comes to motivation. You’ll need to be strict with yourself and set deadlines and schedules.
- Your income is likely to be unstable – Business can be unpredictable and you’ll need to be comfortable with your income fluctuating. You should budget and have plans to fall back on should business be slower than anticipated.
- It’s hard work – While you have the freedom to make choices and set your own hours, there’s no denying that starting a business is hard work. Many entrepreneurs work around the clock to get their concept off the ground and their business is often in the back of their mind.