As it is commonly said that the journey of a thousand miles begins with a tiny step. And you need a maximum threshold of positive power for this small step when you are planning to be an independent business owner. And mind it, it is not an easy decision to make. Our mind gets cluttered with so many thoughts. We keep evaluating all “what ifs” and sprain our brain with overthinking. Read on to understand better the pros and cons of being a business owner.
There is no denying the fact that owning a business is a wise decision. Once you decide to exit from full-time employment, you prepare yourself well for the road ahead. But the journey of a sole trader/contractor/freelancer is not always smooth. There are many ups and downs in it. Most importantly, you are accountable to yourself for all the profits and losses.
Let’s look at some of the cons of being a business owner.
YOUR PASSION KEEPS GROWING
Most dreamers choose to become business owners to follow their passion in life. They are not designed to do regular jobs. All those who wish to realise their dream of ownership prefer to be independent professionals.
It is not always for professional reasons; some people want to pursue their creative callings, and for them, it is the best option.
BE YOUR OWN BOSS
Setting up your own business gives complete control over the products and services offered. You can make the changes to your existing offerings as per the customer’s demand. Also, you are free to choose people you want to work with and follow what you feel is right.
Another important aspect is earnings. You control the pricing of products and charges of services.
BETTER WORK-LIFE BALANCE
As a trader or contractor, you can have flexibility. You can choose your working hours depending on the amount of work you have.
Meeting deadlines are always given priority, so working early mornings and late nights are helpful in quickly finishing the task.
Flexible working hours surely help in maintaining a work-life balance. Also, in case of family situations, you are available to get it sorted sooner.
YOU ARE CREATING A LEGACY
By becoming a business owner, you are creating something that will help you reap significant rewards in the long run.
You are building a legacy, which you can pass on to your next generation. Being an owner, you can also sell your venture to get money for new business propositions.
One of the pros of being a business owner is creating equity, which can fetch money whenever required.
YOU ARE BECOMING UPDATED AND UPSKILLED
As a businessperson, it should be your responsibility to keep yourself updated with the latest market trends and development. You need to learn every aspect of the business. Be it sales & marketing or hiring staff, or accounting profits, you need to know everything. You do not need to have proficiency but learning new skills and honing existing ones are very important.
YOU CAN HAVE FINANCIAL SECURITY
There is no guarantee that owning a business is always going to be a profitable venture. But the degree of uncertainty is lower for hardworking and efficient people. Owning a profitable business venture adds to financial security and stability in the long run.
Now that we have assessed the pros, let’s look at some of the cons of being a business owner.
LACK OF DISCIPLINE AND MOTIVATION
Being your own boss has some disadvantages too. The most prominent disadvantage is a gradual downfall in self-discipline and self-motivation. In the beginning, you can manage to stay motivated, but efforts are required to put in the long run. Time management and routine have to be monitored on a day-to-day basis.
FINANCIAL STRESS AND RISK OF LOSSES
Having a full-time job has one significant advantage of getting pay cheques timely. Thus, a regular flow of income is maintained. While owning a business means you have to deal with the stress of keeping account books, dealing with profits and losses both.
It would be best to keep clearing all the bills by yourself, even in case of delayed payments. When things are going fine, it is okay. But in case of financial instability, there is a risk of losses involved.
DIFFICULTY IN DEALING WITH DISTRACTIONS
A successful business owner is a person who can deal with distractions. A self-employed professional has to deal with many distractions. Being on YouTube and social media are the biggest distracting factors of today’s time. Working from home brings added distractions of getting involved in homely chores, watching TV, or obliging family. It is also quite essential to keep a check on sleeping and eating patterns regularly.
HARD DECISIONS AND EMOTIONAL SETBACKS
When you are the head of your organisation, there is a big responsibility for the people and clients you are working with. At times, you have to make tough decisions for the benefit of organisational growth, like firing an employee or ending a contract with a client. These could be emotionally disturbing for some business owners.
There are always chances of getting cheated or facing losses due to bad decisions. Such things can cause emotional setbacks.
As they say, we all have one life, and we need to make the most of it. Having desires and dreams keep us alive. So, you should not wait for the right time. Just take the decision and kick-start your journey of being a successful business owner.
Remember to assess the pros and be careful of the cons before starting your entrepreneurial journey. There are two different sides of the same coin, and the same applies to our life. So, it is advisable to gather all the positive energies within and move ahead to become an inspiration for others.