Is starting a business for you?

I love running my own business, and in my current frame of mind, I’m probably unemployable, as I would not take orders from the boss too kindly. 

What I love about running my own business, is that I’m my own boss, I’m in charge of my destiny, I get to write these articles in my pyjamas with a hot water bottle, if I’m bored, I just change my own job description and in the last five years, I’ve never stopped learning.

However, the self-employed lifestyle does have its limitations.  I don’t get holiday pay or sick leave.  With my background and qualifications in law and marketing I get paid less than if I worked for someone else, my income fluctuates from week to week and just occasionally, it would be nice to get the opportunity to wear the corporate suit and heels, rather than wear the pyjamas and jeans.

So before starting a small business, it is important to ascertain whether this working lifestyle is really for you.

The Pros

• You get to be your own boss so you get to set your own rules, choose when and how often you work and where you work.
• Your income is not capped.  As an employee there is a pre-defined market limit on what you are worth, no matter how hard you work.  For example, there is only so much a teacher will earn no matter how brilliant that teacher happens to be.  As a business owner, you can potentially earn more, in particular if you choose the right business and work on the business, not in the business.
• You get the opportunity to do what you love doing the most.

The Cons

Business is risky business and while the potential rewards are large, the majority of small businesses fail as a result of lack of planning, a lack of capital, and a lack of experience. In Australia, over ½ of all small businesses stop trading after five years.

• You don’t get holiday pay, sick pay, or bonuses.
• You will potentially work longer hours than you do an employee, with the average small business owner working over 50 hours a week
• Your income won’t be regular or predictable and most business owners earn less than what they earned as an employee
• Unless you motivate yourself everyday, you won’t have a business and in turn a job.
• As a business owner, you are in a position in which you perpetually need to seek new business and clients in order to survive.

As you can see, the cons probably outweigh the pros.  However, don’t imagine for a minute that owning your own business is not fun, stimulating and rewarding.  Yes it can be tough and you need resilience, willpower and an appetite for risk, but talk to anyone successful in small business, and without fail, none of them would go back to being an employee.    

 Relevant articles and resources

• Starting your own home business
• Why client service matters?