How do you know you are ready to take the leap to entrepreneurship? It is true that almost anyone can start and run a successful business. There are distinct advantage and disadvantages to being your own boss.
Let’s take an in-depth look at the advantages and disadvantages of owning your own online business. Remember, only you can decide if the pros outweigh the cons.
The Advantages of Starting a Business Online
Flexibility
Set your own hours and work how, when where and, yes, if you want to. You have the option to schedule your work around your family and leisure activities. You find the time of day you work best. This also frees you to be available to your customers when they need you so you can meet their needs.
Working at Home
Many self-employed people work at home. You might choose to work entirely from home or rent a work space elsewhere. There are many work-at-home entrepreneurs who enjoy that short commute from the kitchen to the office! And you set the office “dress code.” Pajamas anyone?
More Time with Family
When you set your own schedule, it allows you to work around important time with family. I already mentioned no commuting and that in itself can free up hours. You can also be available for your child’s performance or special day at school. Is your child (or spouse!) not feeling well? You can take care of them like they deserve.
Minimal Start-up Costs
Depending on the business you choose, it may require little money upfront to get started. Your expenses are only the tools you need to work, such as a computer and software programs, which most of us already have these days! For those of us who work at home, there is no rent to pay for office space.
Independence
Did I mention no boss? No boss! You have no one to answer to except yourself and your clients. Total responsibility for the direction of your business is yours and yours alone.
Earning Potential
You have the potential to earn more than you would at a j-o-b. If you provide a service, you can raise the price over time. You can set your own prices based on the current market. If you create multiple businesses that can run without your constant management, you can create a residual income.
The Disadvantages of Starting a Home Based Business
Work/Life Balance.
I bet you thought this was an advantage to working at home! In reality, many entrepreneurs have a difficult time separating work and off time. So they end up working 24/7 especially in the initial stage of the business. You have to be disciplined to make sure this does not happen to you.
Discipline.
And speaking of discipline, it takes a great deal of it to set and keep your own deadlines, meet goals and stay on track. If you work at home, are you going to be able to ignore those dirty dishes?
Isolation.
This is a problem for many work at home entrepreneurs. In the past, you have initiated most of your social interaction at work with coworkers or bosses. You may miss the daily social contact horribly.
Multiple Hats.
When you run your own business, you have to wear multiple hats. You have to be an accountant, a boss, a specialist in your service area, an IT person, an HR department and so on. Some of these hats may be things you’re not good at and it will be a struggle to handle them.
Keep all the advantages and disadvantages of running your own business in mind. In my next post I will take a look at some common characteristics of proven, successful, business owners.
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