Once you’re through with college, the next big thing is securing a nice job. You want to get into the corporate world to gain hands-on experience and put what you’ve been learning all these years into practice.
However, after being in the workforce for quite some time, you may decide that the life of an entrepreneur fits you even more. You want to go freelance, start a small side hustle, or venture into business and be your own boss.
Pros and cons of entrepreneurship
Well, no matter what your aspirations look like, being an entrepreneur has its pros and cons that you need to way beforehand.
You may like to read, 10 Characteristics of Successful Entrepreneurs.
The Pros of Being an Entrepreneur
Regardless of whether you win or fall short on your first or next venture, the journey becomes your own reward, and you’ll be compelled to do it over and over again despite all the uncertainties.
Let’s get down to the pros of being your own boss to gain a better understanding of why this is the case:
1. Be the change you want to see in life
If you’ve been working in a business environment where your vision wasn’t embraced by your employer, it’s time to let your dream shine.
As an entrepreneur, you have the freedom to set your own value and standards and work within them. You’ll not have a boss to interfere with your decisions or make some rules for you. Your life becomes your own, and the size and amount of the risks you want to take is your choice.
Essentially, having such an influence over the direction your company is going to take is one of the most exciting things about being an entrepreneur.
2. Ability to Earn More
Entrepreneurship offers an excellent way of achieving significant financial rewards. Unlike being employed where your employer dictates your salary, entrepreneurship has greater chances of growth.
And while every business has financial liabilities that can include loans, payments to be made for gadgets, inventory, and staff, balancing profits and liabilities can mean reaching a point of financial stability.
Note- With this goal, it is crucial to note that most businesses do not make profits immediately. You should be realistic about the time your entrepreneurship will run before becoming an established and secure source of income.
3. Realize Independence
Entrepreneurship is a way of achieving personal freedom on different levels. It allows flexibility to have a healthy work-life balance since you can maintain irregular hours, have seasonal vacations, put in as much time as you want, and sometimes work from wherever you want.
Besides, being an entrepreneur can mean being recognized for your expertise and quality of work.
4. Control Your Own Destiny
Instead of making your employer richer, the profits you make from your business can now slide right into your pocket. That means every business success automatically becomes your own, and every inch your business grows, so does your potential income.
This can be exceptionally motivating for new entrepreneurs who are on the path to success.
5. Community service
If you’re a generous person, then entrepreneurship can offer you even better opportunities to be a blessing to your community.
You can join other entrepreneurs in different community services such as offering foods and supplies to the less fortunate, taking part in non-profit organizations, providing support in health care, and more.
Fulfilling this mandate can strengthen and build your connection with the other entrepreneurs, improve your reputation and create a good public image for your business.
Also read, 13 Best Business Startup Ideas in 2021.
The Cons of Being an Entrepreneur
The journey of becoming a successful entrepreneur is not without its fair share of challenges. They shouldn’t scare you, but it’s good to know and embrace them when weighing your options.
Is being your own boss as good as it sounds?
With no boss for guidance, no guaranteed income, and no colleagues for support, entrepreneurship can be a lonely place, especially when you’re starting out.
Without adequate support, it’ll be so overwhelming to be your own boss, networker, marketing department, accountant, legal department, and more.
It’s A Huge Risk
Becoming an entrepreneur is not for the faint-hearted; there’s always the risk of failing and the fear of others witnessing your failure.
You also risk owing people, risk contending hungry competitors, risk being bankrupt, and the list goes on.
Requires Strong Leadership Skills
You’ll be responsible for choosing your team, giving them direction, and leading them towards your business goals.
Although you can outsource some of these responsibilities, being an entrepreneur requires you to be natural leaders and set standards, responsibilities, and duties of each of your employees.
Are you prepared to face financial instability? When starting out, you may not have a lot of disposable income.
That affects your individual finance, which may lead to struggles in life, such as having difficulties paying your mortgage, car, and other basic necessities if you weren’t adequately prepared.
Check out, How to Be an Entrepreneur without an Idea?
Can Anybody Be An Entrepreneur?
Entrepreneurship isn’t for everyone! It’s for those who are ready to put in years of hard work, have undying determination, and can stand lack of recognition for as long as it takes to become successful.
Here are a few things that you need to drop if you want to be a successful business owner.
- You can’t afford the luxury of staying in your comfort zone
As an entrepreneur, you can’t be doing the same thing over and over again and expect a different result. This venture demands a whole lot of dedication and pushing yourself beyond the limits.
One day you could be doing some office work such as designing, writing, or coding your product.
The next day, you wake up and realize that your services are needed more in the field doing sales and marketing your products, interviewing personnel, or you are a guest on a podcast.
Especially if you’re an introvert, the second option might be less appealing.
But hey! You got to make fewer excuses, put yourself out there, and become used to being uncomfortable.
- Entrepreneurship isn’t a path to make quick cash
It’s hard to imagine a slower way of making money than venturing into entrepreneurship. You can work for a year (or maybe a couple) without ever seeing a dime. You work for more than eight hours, leaving no time to try other alternatives like a part-time job.
Unless you’re among the lucky successful entrepreneurs who were able to work on their businesses while still working a full-time job, it’s not a norm.
It would be best if you start a business with the mindset that you might still be working on it three years from now. You earn your right today to be in business tomorrow.
The future is not guaranteed, so you can’t treat your business like a get-rich-quick scheme.
- You can’t procrastinate, never!
Time is of the essence as an entrepreneur. You can’t afford to keep postponing matters that need to be handled sooner than later. If anything, if you’re working hard enough for your business, why are you even doing it?
If you can manage your time effectively, your business is doomed for failure. As an employee, your boss keeps a constant eye on you to ensure every test is completed on time. Being your own boss means doing it all in a timely and efficient manner.
- You got to learn (or you already know) what it takes to create a marketing strategy
The entire marketing and advertising business is backed by testing. If you are not testing different marketing methods, advertisements, media, etc., then you will never know what works and what doesn’t.
You should also sell a product that you can guarantee. Typically, it’s hard to understand why many people are scared to guarantee what they sell? If you aren’t confident enough in your product or service – find another product or service.
By law, you have to guarantee what you sell. People can do chargebacks, can cause you grief with lawyers, and can spread more bad words about you than you’ll ever be able to make up for.
If anything, negative customer feedback has killed many businesses – all because they refused to refund money for a sale that went wrong.
Also, you may like to read, How to Overcome Entrepreneurship Failure?
- You can’t get along with everyone
Being the boss doesn’t make you Mr. popular.
Whether you’re hiring new staff members, firing non-performing employees, or in a meeting with your business partners, you need to know how and when to fight for your ideas even when others disagree.
It would be best if you are persuasive and convincing without the need to yell or use intimidation. Be the captain of your ship and ensure the people working with you feel like they have lifeboats in times of trouble in the company.
Become comfortable with acting quickly and making tough decisions.
You may like to read:
- Bootstrapping in Entrepreneurship
- What is one of the first decisions an entrepreneur must make?
- What Makes Someone an Entrepreneur?
- What is the Difference Between an Inventor and an Entrepreneur
Entrepreneurship is more than making money, although this one of the most integral parts of any business. It entails creating value, changing how people understand and perceive things as well as attaining personal freedom and high quality of life.
But do you have what it takes to become an entrepreneur? If you’re an entrepreneur or aspiring to become one, it’s vital to know the double-sided nature of being your own boss to make a well-informed decision.
Bijay is an entrepreneur and start-up founder having more than 14 years of IT industry experience. He is the co-founder of TSInfo Technologies, a SharePoint development company.
A dedicated professional and very passionate about public speaking and also wrote thousands of technical blogs in various technologies. He also wrote a lots of blogs on entrepreneurship, investment, startup, business, manage money tips, etc.