So you have decided that you are tired of routine and the humdrum commute to work every day. You are an independent person who does not need to work for a boss. Do you have skills you want to share, which are not being rewarded in your current place of work? Or are you facing the threat of redundancy?
There are many reasons people choose to become their own boss. Some are matters of personal preference, others are from necessity. However, the small business environment is extremely competitive ' it has been said that it is one of the hardest ways possible to earn a living. So before you write that letter of resignation, or start applying to the bank for a loan, take a clear-eyed look at the pros ' and cons ' of owning and running a small business. Let's look at the advantages first.
A big advantage is independence. You know that, left to yourself, you can design a better widget, or at least install it more competently than the next person. It is certainly an advantage to be able to run with your talents, knowing that only the sky is the limit. Allied to independence is being able to work at something you enjoy. Perhaps you can expand a hobby to make money. Love golf? Have you thought about running a retail outlet selling golf clubs and accessories? Do you enjoy renovating houses or landscaping gardens? Many successful businesses began as hobbies.
A second advantage is having the chance to make your own money, no longer depending on a salary or a wage from someone else, money which, in these uncertain times, is no longer guaranteed. By your own hard work, you may be able to achieve the economic security of which you dream.
Slightly less concrete, but still real, is the feeling of self-esteem you can gain by running a successful small business, as people recognize and reward what you have created. And of course, in so doing you may be able to add something of real value to your community.
However, the disadvantages are no less real.
A main disadvantage is the possibility of failure, losing all the money ' and time and effort ' you put into the new business. If not outright failure, a fluctuating income, especially in uncertain times, is a real possibility. The amount of money you earn may not necessarily be within your control.
A second disadvantage is the time you will need to put into your business, especially at first. Hard work is a certainty; time for family and friends may be non-existent for a while. And at the same time as putting in those 12-hour days, you still need to make decisions, cope with paperwork and solve the myriad problems that are going to crop up.
Lastly, there is the fact that you may just give up one boss for a whole set of them ' your banker, suppliers and customers ' and you may come to wish that your hobby had remained just an enjoyable pastime.
Self-employment can work, but, before you begin, make sure you have assessed the pros and cons.
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