I was 28 years old at the age when I launched my first business of a small size. It wasn’t an option I took lightly, and it was perhaps the most difficult choice I’ve made in my life until that date. While I was aware that I wouldn’t lose my life if the decision failed, the anxiety of being seen as a failure by me and by others was among the most challenging obstacles to conquer.
It took me a while to find the courage to quit my job, but looking back, it was one of the most rewarding decisions I’ve ever made. Being a business owner is bound to bring several champagne highs as well as some gut-wrenching lows. It’s not an exhaustive list, but here are a few of the advantages and disadvantages of starting a company:
The idea of starting your own company is to create benefits:
1. You are the boss of your own life. If you’re not a fan of being directed to do something being an entrepreneur could be the best route to follow, especially when you’re a person with a lot of self-discipline and initiative.
2. The end result is that you get all the rewards. Instead of trading your time for a paycheck, the income you earn will be proportional to the worth you offer your customers. So, the potential earnings through running your own business could be significant.
3. You decide what you want to perform. Your business is typically focused on the things you already love to give you fulfillment and meaning within your job.
4. You are able to work hours that are suitable for your schedule. Being able to work when you want to be the most productive is one of the advantages of being an owner of a business.
5. Being the first to receive a large client feels like a dream. I’ll never forget the feeling of the first time a direct bank announced they would like to utilize our services after a couple of weeks of telephone conversations with their HR executives.
6. You’ll avoid having regrets about not having tried. This is probably the main reason that I knew I needed to try to start my own company a shot. Thinking about “What If… and throughout my existence would be a nightmare. It is said that you regret things you don’t accomplish more than you do is actually true.
The disadvantages of starting your own business:
1. It could not be successful. We have to admit that there aren’t many businesses that survive. Cash flow issues have been the leading cause of numerous business failures, so creating a business focused on your own expertise can give you the most excellent chance of success.
2. There will be a lot lower earnings in the short term. Even if the brand-new business doesn’t require a lot of capital to start, however, you’ll be taking the brunt of a pay cut if you decide to quit your job and pursue full-time. It’s therefore advisable to get the ball rolling prior to leaving your current job and to invest funds for the long journey to come.
3. It’s not easy work. You’ll need to work long hours to make it possible. Self-discipline is the primary goal of the game, and prioritizing tasks so that you complete the essential tasks completed each day could be essential.
4. It could put a strain on your relationships. Owning your own business can consume a lot of energy and time, and the financial strains created are not to be taken lightly.
5. Making your company’s accounting isn’t easy. Learning Sage accounting software isn’t enjoyable at all. I suggest looking into Xero as well as Kashflow. Being required to file regular tax returns for Value-added Tax as well as self-assessment tax returns and keep financial records for your company is made more accessible by paying for an accountant who is a public accountant who is certified.
Your personal tendency to be risk-averse should be considered even though the job is only safe due to regular monthly payments. It’s just a matter of a bean counter in finance to decide that savings are required, and in no time, you’ll be gazing at your blank P45.
The second source of income can keep the wolf away from the door and could be a full-time venture when you come up with the right idea.
David Moore is the founder of The New Rich, a website devoted to helping you quit your job that you don’t like by starting a business that the world will want to know about.