Most people want to be their own boss, and for good reason.
Leaving your everyday job to become your own boss can be a very exciting experience as it opens doors to a completely new world of endless possibilities. It gives you a chance to convey your thoughts fully and also make money, as there are no limitations to your creativity.
It is quite a risky endeavor, so it requires persistence, ambition, and patience. Moreover, becoming self-employed is not something that everyone can handle very well. Sometimes a person may end up making less money compared to the previous 9 to 5 job that they used to have before.
Being your own boss has its good and bad sides and some of its advantages and disadvantages have been listed below.
Pros of Being Your Own Boss
If you’d like to reclaim your time and your life, then running your own business is the best way to do that. Let’s dive into the pros of being the captain of your own ship.
1. No Fixed Monthly Income
Once your business has been set up and is running smoothly, there is no limit on the amount of money that you can make. You get to control all the profit you make. This is in stark contrast to being employed whereby your monthly income is fixed unless you were working on a commission basis.
You can greatly reduce the expenses in your business by doing most of the stuff by yourself or you can get help from family members, friends, or even former business associates.
2. You Make Your Own Decisions
You get to decide on everything when you run your own business. You may be open-minded enough to gather a couple of opinions from friends, family members or even from consultancy firms, but eventually, you are the final decision-maker.
You can set up your shop anywhere you want and also choose when to go to work. The layout of the premise and the equipment used are up to you. You get to choose the type of product you want to sell and its price point.
In addition, you do not have a supervisor telling you what to do or how to do it. You get to decide how your own business operates.
3. There is No Limit to Your Creativity
When you start building and managing your own business, you are free to decide whether you are going to provide services or goods to your potential client. If you choose to deal with goods, you will have to come up with methods of production and delivery.
Over time, people change their preferences, styles, and tastes, so it is important that you notice these changes as a producer, or else you will lose market share. As your own boss, you have the ability to be flexible and change with your market to provide them with what they need.
Some of the changes you can make include rebranding and repackaging to make your product more appealing or by raising/lowering the price with respect to the level of demand. You are also free to change the product and start selling something else that seems to be capturing the attention of the shoppers.
4. You Can Come Up with Your Own Culture/Routine at Your Workplace
Once you are self-employed, you have a chance of creating an environment that aligns with your professional or personal values. Under the employment of someone else, you have to carry yourself in a way that the boss has instructed whether you like it or not.
When you work for yourself, you have an opportunity to incorporate morals and core values into your day-to-day operations. This way, even if you choose to hire a worker, they will have to do things your way.
Cons of Self-Employment
Being your own boss is great, but it isn’t all daisies and sunshine. If you want to be your own boss, you’ve got to be realistic about its disadvantages. Here are a few of the biggest ones.
1. Steady Income Isn’t Guaranteed
In every business, there are times when it’s booming, and times when things may not go according to plans. As much as you get to keep all the profits in a ‘good month’, there may come a time when you incur losses instead of profits.
If you are running an unlimited company, you will be forced to dig into your personal account to finance the business and save it from closing down.
2. Your Business Becomes Your Life
It feels very good when everything in the workplace is running properly. On the other hand, your presence at work becomes so vital that everything ceases to function when you are not around.
This means that there is little to no time for holidays because you will have to shut down all operations. In addition, your business is likely to go through a rough patch when you have to be away for a while, like when you fall sick.
3. You Finance Every Activity at the Workplace
As much as you have the freedom to choose the location and equipment that you use, the money spent here comes from your pockets. If you do not own the property, you will have to pay the monthly rent and finance the upgrading of the equipment you use from time to time.
Furthermore, if you have staff working for you, you will have to pay them and maintenance services as well.
4. You Do Almost All the Work in the Beginning
When starting up your business, you will have to do everything by yourself. You will have to create your business profile both online and offline from scratch. As the sole proprietor of your business, you will have to take care of all the things that your boss used to do when you were employed.
Need Help Managing Your Business?
There are a number of advantages involved in leaving your daily 9 to 5 job and being your own boss is one of them. However, there are disadvantages that cannot be ignored. Therefore, it takes courage and resilience to be successful.
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