When you think about whether you want to start your own business, most of the messages that you get are that you should go for it. We are a nation of entrepreneurs, and we tend to look up to people who strike out on their own. However, not everyone is happy as a business owner, and there are advantages and disadvantages to being in charge of everything versus being an employee. Below are a few things you should consider.
Regulations
Some industries are heavily regulated. This is not necessarily a bad thing, but it can mean a heavy burden on the owner that as an employee, you just don’t have to worry about as much. If you are starting up a business in a heavily regulated industry, find out what kind of tools are available that will help you follow those regulations as closely as possible. For example, if you are running a business that has a fleet, you can prevent hours of service violations with ELD compliance solutions. This can help you make sure you’re compliant and prevent fines or other penalties.
Income
Sometimes, when you look at what CEOs make versus what their employees make, starting your own business might seem like a no-brainer. You might be dreaming of how much money you could make if you worked for yourself instead of someone else. However, the truth of the matter is that in most cases, you need to be prepared to weather a lot of uncertainty around your income, especially in the early days. This is why some people keep their day job or rely on a partner who has a steady job as they’re getting things up and running. You also need to have the temperament to deal with the overall financial uncertainty of being a business owner.
Work-Life Balance
Many people start a business so that they’ll have a better work-life balance, and this can be the case. When you’re setting your own hours, you can make time to pick your kids up at school, focus on the basic principles of healthy eating, or knock off for the afternoon to hit the gym. The flip side of this is that you may work much longer and less flexible hours because there’s no one else around to pick up the slack. Be sure that you are realistic about the demands of the industry in which you’re starting your business and that you’re prepared for how much control or lack of control you’ll have over your own schedule.
Prestige
The prestige of being a business owner is important to many people, and it might be a big pro for you. This in turn can open doors and new opportunities. The flip side of this is that some people discover that for them, prestige is not everything it’s cracked up to be and that they’d rather go back to being an employee with a little less visibility and responsibility for everything. There’s no right or wrong way to feel about this factor, but it is worth considering, especially since you may find that your feelings about it shift once you actually are a business owner.
