Are you about to start your own business but not exactly sure if it’s worth it?
Are you excited about being your own boss and earning loads of money by doing something you love? But are you aware of all the other, not so fun stuff that comes together with owning a business?
Just like any other job, running a business has its pros and cons. While some people get scared of the downsides, others can only see great opportunities. We’ve created a list of those advantages and disadvantages, so you can decide whether entrepreneurship is for you.
Pros:
Running a business gives you independence and freedom
When you start your own business, you get a lot of freedom. No, it doesn’t mean that you have loads of free time to do whatever you want. It means you get the responsibility of making decisions. However, as a business owner, you are in control of your own destiny. You don’t have to rely on others or discuss your decisions with anyone – you choose what you believe is best for your business.
It also gives you the chance to create a work/life balance. You can choose your own working pattern that lets you prioritise your personal needs. Setting clear boundaries between work and personal life will let you have time to rest and do other things you enjoy.
Financial benefits
How many times have you heard someone saying that money can’t buy you happiness? But once you have your bills paid, food on the table and can afford something to treat yourself or set some money aside, you definitely feel better about life.
Running a business requires a lot of time and hard work. But once you start seeing results, you realise that it’s all worth it. Remember, some businesses don’t make much or any profit during the first few years. Investing in new equipment, covering startup costs and finding the best ways to market your business can be costly. However, if you have a plan and know exactly what you need to do to make a profit, the future of your business is bright!
You can live your passion
Have you ever met a business owner that isn’t passionate about what they do? Sometimes, during harder times people tend to doubt themselves and the relevance of their business. But in general, people start their own business because they enjoy something they do and want to do it full time and make money doing it.
You spend most of your time working, so why not choose something you are passionate about?
Running a business can have a positive impact on your physical and mental health
Successful business = happy owner
But what is a successful business?
If all you think about is money, it can be very difficult for you to be pleased with the results, as the more money you have, the more you want. While money is a big part of business success, there are many other factors that add to it.
If you help people, create positive work culture, treat your employees well and see your business as a place to learn and grow as a person, you’re more likely to wake up every morning feeling satisfied with your life. Being satisfied with your life strengthens your immune system as well as helps you avoid mental illnesses such as anxiety or depression.
Also, knowing that you do something meaningful boosts your confidence and motivation.
If you want to learn more about what positive impact running a business has on you, you can read about it here.
Cons:
Risks
Any decision you make, you risk making a bad one. While some mistakes don’t make major damage to the business and can be easily corrected, others can be vital. Read about some of the worst business mistakes here.
Also, one of the biggest risks is losing money. A lot of business owners take out a startup loan for their business, which means that they’re in debt from day one. Worrying about making enough sales to pay for both business and personal needs as well as having to repay a loan, can be stressful.
Inconsistent income
When you are an employee and work a set amount of hours, you know how much you earn and can easily plan your budget. When you run a business, you never make the same amount of money two months in a row. While you can try to predict your better months and when you need to be more careful with money, predictions aren’t always accurate.
Uncertainty makes it tough to plan ahead. This is why a lot of entrepreneurs end up planning by guessing. It also makes it harder to save any money as while some months you have a little bit leftover, other months you have to ‘borrow’ from your savings.
Running a business increases the possibility of stress and burning out
Running a business comes with an increased amount of responsibilities. Being responsible for things you haven’t done before, taking risks and worrying about money leads to stress. If you don’t practice self-care and don’t know how to manage stress, it can take a big toll on your health.
Also, every business owner has to invest a lot of time and effort to succeed. A busy schedule can make you feel tired or think about work even during your time off. Overworking, overthinking and over pushing yourself increase the chances of burning out.
If you’d like to know more about the signs of burning out and what to do if it happens, you can read our blog post about it here.
There’s no one to motivate you
To be a successful entrepreneur, you need to be self-motivated. Extremely self-motivated. A lot of people start a business feeling motivated and hungry for success but all that enthusiasm can quickly fade, especially if things don’t go as well as planned.
When you’re your own boss, there’s no one else that would tell you what to do or would look for you when you don’t show up at work. Also, there’s no one apart from you to tell you what a good job you’re doing. It can be hard to mute your inner critic but if you want to hear some praise, you have no other choice.
Do you want to “try before you buy”?
Still can’t decide whether running a business is for you? We run the Eureka programme that allows you to explore the idea of running a business and decide if it’s something you would like to do. Find out more about the Eureka programme here.
