What's on your mind? Tired of working for someone else? Willing to step out there on your own? Well it is almost never to late. Late is when you are out of time, out of interest. If any of this pulls at you, then consider the follwing when minding your business.
Source: Lifehacker Australia: Consider the Pros and Cons of Working for Yourself. The first big question you'll need to answer is whether the benefits of being your own boss truly outweigh the disadvantages.
Pros: The pros are pretty obvious, since they're the reasons millions of people dream about ditching their conventional jobs. Your reasons for starting a business should include several of these motivations, rather than, say, just doing it for the money opportunity:
- You can make a living doing what you love (or at least what interests you).
- You're in control of every aspect of your work life, from when you work to where and with whom.
- You can choose which clients to work with and which projects or what kinds of business to go after.
- You might find better work/life balance and can even work with your family (although that's a whole other situation).
- You may get things done faster and better when you're free from office politics and red tape.
- You have a chance to earn more than you would working for someone else. The money you have been making for others now shifts to yourself.
- You'll have greater job security. That might sound counter-intuitive, but business owners typically have multiple clients, which lessens the pain if you lose one of them. Employees, on the other hand, have only one "client," their employer.
- You build something that's all your own, which gives you a great sense of accomplishment and also life purpose.
- You'll have to deal with an uncertain income and possible cash flow problems ("feast or famine" describes it pretty well).
- Finances overall will be more complicated (hello crazy tax laws!). Also, if you want to get a mortgage or other loan, banks will look at you differently and you'll have to meet higher criteria.
- You have to be a self-starter every single day you work.
- You have to do everything yourself (or hire someone to help you). "Everything" includes: managing the business' finances, marketing your products or services, organizing paperwork, dealing with lawyers, and chasing clients for money owed to you.
- If you want them, you now have to pony up for the paid benefits you once got as an employee. These benefits can be very expensive, especially health insurance or even taking a vacation. (Business owners learn the true meaning of "time is money" when they try to take time off.)
- You may be more likely to overwork and burn out.
- You're exposed to the same problems that trouble those who work from home: isolation, pressure, and loneliness.
- All of this can be much more stressful than working for someone else.