If you are thinking about starting your own business, developing your idea in your spare time is a good way to start. Then weigh the pros and cons to understand your motivation for starting something new.
Working for yourself or others?
It is crucial not to underestimate the hard work involved in running a business. Instead of having one role, business owners often take on multiple responsibilities – from producing a product or performing a service to carrying out all the administrative tasks as well as going out and selling the idea. Although you may no longer have a boss to answer to, your working hours may be much longer, especially at the start.
As a business owner, you have more responsibilities and need to invest more in your future. You will take more risks and feel more pressure running your own business, but the potential for success is often greater than working for an existing company. Running your own business will mean you have more control and flexibility.
Be clear about your motivations for starting up a business. Perhaps you want to run a business from home doing what you love. Maybe you are driven by wanting to make a positive impact on society. Think about how you see your business in the future. You might want to grow your company and employ staff, building a family firm for future generations. Or perhaps you want to make enough money to sell and move on. Maybe you want to generate wealth to buy your dream home or travel. Or you may simply want enough income to replace what you earned as an employee.
Considering your options
Remember that paid employment brings many benefits, whereas being your own boss can be stressful and financially risky. Weigh your options carefully before you reach a balanced decision.
Pros and cons of paid employment
Pros
❯ Financial security comes from a regular weekly or monthly paycheck.
❯ Sickness and vacation pay bring more consistent income.
❯ Sense of belonging comes from working with others toward a common cause.
❯ Investment in your development and training is paid for by employers.
❯ Opportunities to build experience and develop new skills are available.
Cons
❯ Earnings are limited depending on the company’s pay policy.
❯ Your hard work helps achieve another person’s dreams rather than your own.
❯ Office politics can be frustrating.
❯ Time and money is spent on commuting to a workplace chosen by the company.
❯ Lack of flexibility in work hours and conditions can be problematic.
SIDE HUSTLES
Rather than give up your paid employment right away, you may want to start your new business venture in your spare time. A start-up that begins in this way is known as a “side hustle.” You keep the benefits of being employed, while testing the viability of a new business. It is a compromise, but it can also be a springboard, allowing you to develop your business idea with less personal and financial risk.
“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret was not trying.”
Jeff Bezos, founder and CEO of Amazon
Pros and cons of being your own boss
Pros
❯ Potential for higher earnings, without the limits put in place by an employer.
❯ Greater control, independence, and flexibility to work around family/personal commitments.
❯ Ability to choose your hours and work at your own pace.
❯ Potential for greater job satisfaction – all your efforts go toward achieving your goals.
❯ Opportunity to pursue your dream.
Cons
❯ Greater financial risk with less security as a business owner.
❯ Sense of isolation from working independently with less human interaction.
❯ Responsibility for mistakes and failures, as well as successes, rests with you.
❯ Potential strain on family/social life from working long hours.
❯ No income if sick or on vacation.
❯ Inability to switch off at the end of the working day.