We all have dreams of running your own business, reaping the benefits, and living the high life. But, is the reality like how we imagine it? The short answer is, no, of course not. But how does it impact your earning potential when you are passionate about a business idea that you have the greatest feeling for?
The cynical among you, when it comes to jumping ship, especially from a full-time job, may think that it is a very stupid idea, and could land you in a lot of hot water, and a lot of debt.
But it’s not just about the financial difficulties, but it’s about the sense of fulfillment you will have within yourself. A lot of people, when they are job hunting, will go for the idea of running their own business more than the actual tasks that it entails.
So, let’s go through the highs and lows of running your own business, in comparison to working a full-time job.
The Earnings (Or Lack, Thereof)
You don’t have to go far to find some basic information on startups and how they struggle to keep afloat, they say roughly 9 out of 10 startup companies will fold within the first year or so. So why is this?
By looking at the mistakes of the startups, we can begin to unravel the real reasons behind these failures. A lot of the time it’s about people not having an appropriate business head on their shoulders, because a lot of people are venturing into a different industry than what they are used to, and as a result, their expertise is not up to par.
The earnings and overheads are the big things that any entrepreneur will struggle at the outset to keep track of. So you need to make sure that your budgeting skills are second to none, or you know the right people who you can trust in this respect.
Raising capital for your business can become a task all in itself unless you put the right stops in place before you officially dive in and start trading. A good example is that a lot of organizations that will lend you money in the form of equipment financing, line of credit, or just a standard business loan, they would like to see that you have been trading for some time.
In this respect it doesn’t make sense to jump right in, leaving a full-time job right away. Instead, you are better to start your business small, as a part-time venture, while also working that full-time job. And, gradually as time goes on, and you accrue more clients and customers, the balance can slowly start to weigh in favor of the business. You can then begin to wind down your full-time job, before giving it up altogether.
But to have the security behind you, in a financial sense, the earnings are pivotal to the success of your business at the start. If you spend more time concerned about your finances, then you are focusing on the important details of the business, such as the product and the customers, as well as the marketing that will very likely make you part of the 9 out of 10 startups.
The Work-Life Balance Dilemma
This is something that many beginner entrepreneurs struggle with. They are so caught up in trying to make their business a success in those early days that any semblance of a normal life goes out the window. You can’t blame them really, they are throwing their life and soul into this venture, and they need to make it a success, whatever the costs. But the question is where do you draw the line?
There will always be issues that pop up from time to time, especially if you are starting a business from home. Any small home based business owner will tell you that for the first year or so, you can kiss your social life goodbye. And this is something you would need to get to grips with before taking the plunge.
If you have a family, and other external commitments, these can weigh heavily on your life.
If you are running a business where you are dealing with customers one to one, and you make a mistake and mess up the order, this needs to be rectified as soon as possible.
This could take up the whole of your Saturday or Sunday, meaning that you may have to kiss that social function goodbye. It’s important to note that these issues don’t pop up that often, but when they do, you need to be prepared to deal with them straight away.
This means putting everything to one side, apart from this emergency. Comparing this to a full-time job, where you can check out at 5 o’clock on Friday evening, there is a lot less for you to deal with.
The Sense Of Fulfillment
This is the one thing that will tip the scales for many people considering starting their own business. A lot of people go into these ventures because they feel that there is nothing left to challenge them or occupy them.
So, if you truly have a passion about starting a business, something you know a lot about, and are prepared to do more research into the industry, into the processes, and are willing for it to consume your life in a positive way, you will get a lot of fulfillment out of this. But the question you need to ask yourself before starting this leap of faith is if you will feel the same sense of fulfillment a year down the line, or 10 years into the future.
People can easily fall out of love with their business ventures, much like people fall out of love with their jobs. So you need to think that if you really are looking for another way to earn a living, by starting a business, that it’s not just about the potential to earn money because this will not happen for your first year.
The first year is where you will find out what you are capable of in this respect, and you will make a decision whether to plow through or give up. And this is the key to making a living running your own business.
Running your own business is a gamble, but it’s not just a financial one, it’s an emotional one, a personal one. And if you succeed, it will be a triumph in all of those aspects.
This post has been contributed by Ryan Gatt, it may contain affiliate links.