Has self employment crossed your mind, but you have no idea what you can expect when starting your own business?
For this reason we have compiled the pro’s and cons of self employment:
Pros
Freedom – Self employment allows you to determine your own schedule and should aid you in achieving a balanced lifestyle much easier. Keep in mind that the business should still take first priority, although you will be able to take time off when you like.
Manage – This is where you are placed in the “Director’s“ chair. You make the important decisions that will affect the well being of your company. This sounds ideal, doesn’t it? With this title comes greater responsibility…
Fulfilment – Many people prefer following orders, compared to taking the initiative. By running your own business there is always a greater sense of pride and achievement when you’ve done something for yourself, especially when you become hugely successful.
Enjoyment – There’s nothing more enjoyable than having “fun” in the workplace. This might sound contradictory, but there needs to be an element of excitement to look forward to everyday and this is possible when running your own company.
Wealth – There’s no limit to the income you can generate when your business comes together, compared to the earnings potential if you were working for a company.
Do these self employment benefits sound to good to be true? Keep in mind that they are only effective if you are dedicated and motivated, which means that you have to put in that extra effort to reap the rewards.
Needless to say that running your own business is not a walk in the park. Not every business becomes a money making enterprise, if that was the case, everyone would have their own franchise!
If you are excited by the above self employment prospects – Do yourself a favour and familiarize yourself with the following, because like with many other aspects of life, self employment has its drawbacks:
Cons
Extended hours – Be prepared for working longer hours by putting in that “little” extra time when needed. You will need to work in the evenings as well as over weekends if necessary. This extra time could benefit the business, but affect your personal life if not handled with the correct planning.
Capital – Most entrepreneurs have to borrow money to set up their venture, which means they will have to pay back with interest. By taking this loan they might not sit in the “Director’s” chair alone, as the investors would probably want a say or be informed at the least of the important decisions affecting their investment.
Pressure – Because of added responsibility, you will experience added pressure, if not dealt with carefully could affect your decision making, both in the work place and at home.
Unsuccessful – Most businesses don’t succeed and close down in the first couple of years due to lack of experience or many other factors. If you are one of the unlucky ones, don’t blame yourself – we all make mistakes! Ask yourself whether you are willing to try again after the failure or will you just give up and go back to your desk job.
Manage Tasks – At first you may not be able to afford appointing employees. This means that you will be doing a lot of the tasks yourself. Take this into consideration before starting something that requires specialist fields if you are not able to provide the necessary expertise.
No Perks – Say goodbye to those perks and benefits you receive at a large company. If you cannot sacrifice these benefits, better you keep your job. If you don’t mind providing your own health insurance and pension and would like the freedom of running your own business, then go for it!
Be informed that one needs to set high standards when putting this vision of self employment into action. You have to be convinced that this dream can become a reality by doing research and looking at different case studies. Be prepared to commit fully in order to make a success of your initial idea.
We advise anyone wanting to start a private business to do it on a part time basis, if at all possible. Once you see the returns coming in, you may want to expand and perhaps employ someone to manage your affairs. If all goes according to plan, now is the time to put all your efforts into making this a thriving venture.
