 |
| Tremblay House of Design Principal |
I am
thrilled about entrepreneurship as a substitute for working in a corporate
position. THOD has been in business for 25 years, but I make it a point to
mention that not everyone is cut out to be in business for him or herself. I have tried to complete a list of pros and
cons as a guide to determine whether one should decide if starting up a
business is a good idea to pursue. Starting a business is an important decision
because of the ongoing dilemma of current financial issues in this country.
Though I
get to be available more often than not for my family while operating a small
business, I believe there are larger questions to consider when one begins
the path to entrepreneurship. The following lists are the pros and cons one
should concentrate on in this career decision.
The Pros
If you
are let go because of downsizing, elimination of a position, or just as an
excuse for termination, it may become challenging to obtain another job
quickly. To be in business for yourself is a good way to create an income
instead of spending your time preparing for a new position with a
corporation.
Without
an employer involved, you can bill more for your services. You no longer have
to worry about the funds split between you and an employer.
Don't
jump into working for yourself. One can work to his or her comfort level, as you
might say, as going too heavy can be detrimental. That is why some
entrepreneurs work part time until they feel leaving a job is viable.
If you
feel you need more income, instead of looking for an increase in finances from
an employer, you can just pick up another client or service call to increase
funds.
It costs
less per day to be in business than to work for someone. The costs of fuel,
travel, daycare, groceries, and apparel costs can be far less than working in a
corporation. As far as inter-office expenses, one can save on unforeseen costs
as well. These savings can be from avoiding birthdays, and baby showers, and
constantly helping coworkers with fundraising for his or her child. Many of these
unexpected costs can deplete funds and your time.
Being in
business as a sole proprietor allows one to use the expenses associated with a
project as tax deductible. The tax burden is much lower in your own business,
and a considerable number of things are business expenses, like
conference registrations.
The Cons
Insurance
benefits are not easily available for self-employed individuals, and it's tough to gain health insurance if you have a pre-existing condition. These
conditions make it impossible to get insurance coverage as a sole proprietor.
With a
traditional job, and you have a poor sales week, you will get
paid. When you are self-employed and you cannot make sales, you can lose a valuable income. Maybe you have a legal contract, but sometimes things can
still go south.
When you
are self-employed, you do not have anyone to take on any issues or dilemmas.
When you are on your own, make decisions that can make or break
your business.
Don't
start a company that is excellent but not obtainable by starting your own
business. If you don't redesign a new game plan, why bother trying? A good job
is hard to create.
Take all
considerations of your life in deciding to start a business. If you
have a family depending on your income, you have to be positive before you
begin a business on your own.
You
supply the company with everything from office space, insurance, phone,
computer, or supplies. As the home business owner, you handle all
of it.
As a
company owner, you do not get to take paid vacations or paid sick leave, and
you do not get to take a day well day off unless you have already made that
income in business. You can make these items as mentioned earlier as the
owner of your own business, but remember, if you don't work, you don't get paid.
Employer's
new options are hard to compete with, even though working for yourself is
flexible. There are reasons people do not start a business. Companies now
offer early out (EO) flex time (FT) or telecommuting positions where
employees can work from home. With various options available, these benefits
assist employees in starting a business without having to give up a regular salary
to be a sole proprietor.
In
conclusion
Running
your own business, contract work, or consulting is not for everyone. The many
securities of employment, even with cutbacks that reduce different benefits like
IRAs or 401K through your employers, can still be better than unemployment. With
that in mind, many organizations are employing more freelance companies for
many specific jobs, and that can be a benefit for sole proprietors. This trait
is growing in corporations because it is easier to hire a professional than
to keep an employee with the newest codes or procedures to complete a job.
With the
many situations that can counter the cons I listed, as well as the pros, one
can easily get around these concerns if he or she concentrates on building a
larger income. When created by the knowledge of a career, the discipline to run
one's company, and the ability or expertise to complete various contracts.
Before one runs a sole proprietorship, all options should be
researched. A sole proprietor must look into a business or many companies, so
he or she can know the options available to one as a corporation currently
employs them.
No comments:
Post a Comment