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If you’re considering entrepreneurship, there is a lot to think about. There are so many benefits to this lifestyle, but all too often people don’t think about the drawbacks before they begin. The entrepreneurial life isn’t for everyone, but it can be a perfect fit for many people who are drawn to its excitement and possibilities.
Pro – More Flexibility and Freedom
When you work for someone else, they dictate where you work, how long you work, and when you have to be there. A manager is responsible for making sure that you’re there on time. If you don’t like that arrangement, being an entrepreneur might be right for you.
When you’re your own boss, you have autonomy over what you do on any given day and how long it will take to do it. You don’t have to report to anyone, and you can make flexible use of your time. You can start the workday later or finish up early if you choose to, and your vacations are on your terms. Many people find that this freedom is their biggest draw to the world of entrepreneurship.
Pro – You Profit From the Business’ Success
When you sell products or services, working for someone else means that you enrich the business owner with each sale. It may give you a tiny commission, or you may not earn from sales at all. When you’re at the helm of your own business, the business’s success is your success. You reach success one sale at a time, and you’re the one who will prosper from them.
Pro – Run the Business the Way You Want
When you’re an entrepreneur, you don’t have to follow someone else’s rules. You can bring your specific skillset into your business and create the way your company does business. You decide who you’re going to hire, and you decide on the wages you pay. You can have a vision for your business and make choices that are in line with that vision.
Pro – You Can Earn Much More
When you work for a company owned by someone else, they control how much you make. This may be an hourly wage, a salary, or a salary plus commissions. In all of these cases, someone else is deciding your compensation. When you own your own business, your income is unlimited. You can stay small or grow as much as possible. You have control over what you earn. Entrepreneurs often have the ability to make far more than they did working for someone else. And as you earn more profits, you can even invest some of the money and make still more.
Pro – Develop New Skills
Even If you don’t want to run your business forever, running it will teach you an enormous number of skills. This can make you highly effective in a number of roles later. You have to learn and develop a lot of skills as an entrepreneur, and these can help you will many aspects of your life. If you stay in your business, your new skills can help you with everything from networking to hiring to the day-to-day running of your business.
Pro – You Can Do What You Love
Many people start a new business because they want to be able to do something they’re passionate amount. If there’s a field that you’ve always wanted to be in, you can do so by starting a business in that industry. Many people spend years working in one field while wishing they could do something else. Sometimes, people are waiting for an opportunity in that field and may never find one. When you start your own business, you are making your own opportunity. When you enjoy doing something, working can be fun. You may never find fun working for someone else and doing what they want you to do.
Pro – Have a Positive Impact on Others
When you are an entrepreneur, you can improve many people’s lives as a result of your business and your ethics. You may improve the lives of many local people by giving them jobs and providing them with quality goods or services. You can give people jobs that pay well so that your employees can have a better quality of life. You can help your customers by being ethical in your business and helping them with something that will benefit them. If you run a B2B, you can improve many businesses to help them be more effective and even more profitable.
One of the things that many entrepreneurs take a long while to get used to is that they may feel lonely in their new role. In the beginning, you will likely do all or most of the running of the business by yourself. As you add employees and expand, you still won’t have co-workers to just hang out with. You will need to keep a professional distance in a lot of ways.
You may also find that the other people you once spent time with aren’t available during the same hours that you are. As a business owner, you can generally take off some time in the middle of the day to see a movie, but none of your friends will likely be free to do so. It’s even possible for some people to avoid you out of jealousy, especially if you achieve a lot of success.
Con – Crazy Hours
One of the reasons that you won’t have a lot of socializing for a while is that there’s always something to do in your business. You can’t simply leave at 5 and forget about the job for the rest of the day. You may be able to carve out some hours here and there for leisure, but in general, you will work many more hours than you would as an employee of someone else.
There may be no clear end to your day of work much of the time. You’re ultimately responsible for all aspects of the business, so you could find that you have no days off for a while. You might have to miss important events and even holidays if you need to work during that time.
Con – It’s Financially Risky
When you work for someone else, they’re responsible for paying you as agreed. You get your pay at regular intervals no matter how much business the company is doing. When you own the business that is paying you, there is no such guarantee. You have a lot of expenses that your sales have to pay for, and there may be times that you have to pay yourself very little or even nothing at all for a while.
Depending on the type and size of the business, it may take a while to become profitable at all. Even for a successful business, there may be times when sales slump, and this could mean that you unexpectedly get less pay. For this reason, it’s generally a good idea to save up a few months of expenses before you start a new business.
Con – Expect More Stress
When you work for someone else, you’re responsible only for the responsibilities related to your position. When you own the business, you’re responsible for everything that happens there. Tasks that you may never have even thought about before suddenly become yours to take care of. From payroll to janitorial services, it’s all up to you. The stress of having so much responsibility can ruin the fun of being in control for some people. For some, it’s just too stressful for them to stay in business, and they want to go back to a regular paycheck.
Con – Having Limitations
As a new business, it will be hard to compete with established businesses in your industry. You may be short-staffed for a while or have other limitations that keep you from the success you’re looking for in the beginning. Without funding from a well-established business, you will have to build your name and find a customer base in order to start being competitive. These limitations can be frustrating.
You may also find that you have personal limitations with the number of hours you need to work to be successful. You will be limited in your free time as well as in the amount of self-care you can engage in. However, many entrepreneurs end up getting frustrated that they can’t work even more hours because there’s so much to do. However, no one can work 24 hours a day.
Consider the Pros and Cons
Many entrepreneurs only think about the positives when it comes to being an entrepreneur. However, they should also consider the many drawbacks that exist. The entrepreneur’s busy life isn’t a good fit for everyone. But for those who love the many benefits that come with it, they may find that their lives are improved even with the long hours and risks they have to take. Think about both sides before making your choice.