This country is built on the idea of entrepreneurship. You may not already know this but, almost 90% of businesses in the United States are classified as small businesses, which mean they have less than 20 employees. You can become a part of this statistic and watch your idea grow from an idea into a profit producing machine. All the hype aside, you must know what you are doing because over 60% of the businesses that start up fail within the first couple years. I am not trying to be “Johnny Rain Cloud” but, you have to be careful to ensure your success. Quitting your own job and starting a company is not a decision you should take lightly. Before making any rash decisions it is always good to sit down and weight out the pros and cons.
Let us start by examining the good aspects. You probably already know these but, they are the reasons you choose to start your own company. You get to work your own hours and from the location you want. No more sitting in hours of traffic each week to get to the office. Many jobs will let you work from home. Since you own it, you can run things the way you choose. Perhaps you didn’t like the way the mechanics shop you worked at operated. Now you have the chance to make things the way you think they should be. One major factor is that you have the potential for unlimited growth. When you work for a company they will financially benefit from growth. While you may get a pay raise, you won’t get anywhere near as much as the company profits.
Now that we have looked at the benefits we must consider the downside. To contrast our last point, you have the potential to lose everything you put into a company. If your business goes under you could lose as much money as you have put into the business. You are not guaranteed a steady paycheck. Your pay is strictly determined by the number of customers you can bring in. You may not even get any pay for months. It takes a while to get your company up and running. I recommend all new business owners have at least a years’ worth of living cost set aside to help get through the beginning stages. As you can see there are many good and bad aspects of owning your own company. I fully believe you can do it but, I wouldn’t be doing you justice if I didn’t make sure you understand the risks and rewards associated with it.