It can be a thrilling experience to quit your regular job and work for yourself because it opens up a new universe of limitless opportunities. It demands passion and patience because it is a risky endeavour. Still, not everyone can handle being their own boss. The pros and cons of being your own employer are further explored below.
No limit to income
The amount of money you can earn after starting your own business is unlimited. All the money you make is yours to keep. In contrast, as an employee, your monthly salary would be a fixed amount unless you work overtime or on a commission basis. By handling the majority of tasks yourself or with assistance from family or friends, you can significantly lower the costs associated with the running of your business.
Make your own decisions
Having your own business means you have complete control over every decision. You might be receptive enough to hear other points of view, but ultimately you make the choice. You can establish a business anywhere you want, and decide when to report for duty. It is up to you how the environment is set up and what tools are used. You get to pick the product category and the price range you want to sell. No boss is around telling you what to do or how to do it.
Creativity is unlimited
It is entirely up to you once you begin creating and running your own business whether you will offer your clients services or products. You will need to develop a production and distribution system if you want to trade in goods. People’s preferences change over time, and it is critical as the boss to be aware of these shifts or you risk losing some of
your customers. Being your own boss gives freedom to adapt and evolve with your customer based on their needs.
Steady income not guaranteed
Every business experiences periods of growth and periods of lesser growth or loss. Even though you get to keep all of your gains in a successful month, there can be periods when you lose money rather than make it. If you are your boss – managing the business, you may need to use up personal funds to support the operation and prevent it from going out of business.
The business becomes your life
When everything at work functions properly, it feels great. On the other hand, when you are not present, everything at work stops working, making your presence crucial. This may mean that to avoid having to stop all operations, there would be little or no time for holidays. Furthermore, when you must be away from your business for an extended period, such as becoming ill, your business is likely to experience a difficult period.
You finance every activity
Even though you have complete flexibility to choose the environment and tools for your business, the money spent comes from your own pocket. If you do not own the property, you will need to pay rent each month and budget money for occasional equipment upgrades. Other expenses may include utilities, maintenance services and wages if you also employ personnel.
Above, we have explored how it would transpire to be your own boss. Being self employed offers you the chance to express your ideas creatively while earning money. On the other hand, there are also challenges as owning a business could result in occasionally generate less money than projected, which can put pressure on the business.
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Charlot Cauchi is a Gestalt Psychotherapist at Willingness. He has experience working with adult clients with mental health difficulties, anxiety and depression, loss and grief, traumatic experiences, stress and relational issues.
Lenton, P. (2017). Being your own boss: the many faces of self-employment. Sheffield Economic Research Paper Series – The University of Sheffield.