Just about everyone needs a steady income, whether it is from investments, a full time job, or a business. The majority of people work for someone else, which suits most people well. It is comfortable in having a job rather than a business; one feels much safer in regards to their financial future. Many employees have small children, a lot of financial obligations, or needs that require a guaranteed paycheck. Many people though can take a risk and start their own business. There are a lot of benefits to starting ones own business. Here, are 5 reasons why you should start your own company rather than work for someone else.
Many people assume their jobs are secure. This is rarely true, in fact, the last recession showed that few jobs are secure. With a job, one is at the whim of a lot of factors out of their control. This can include a lousy boss, a corporate buyout, regulations, or even market trends. When running ones own business, there are less factors holding one back. Anyone running their own company has to work hard and have a terrific product. If both of these are true, they have a strong chance of success. Running a business helps one control their own destiny.
One of the biggest drawbacks of a typical 9-5 job is the loss of freedom. Small business owners work hard, but they also set their own hours. Many people are better at waking up early, while others are night owls. As long as business conditions permit, one can work their desired hours. With a corporate job, most people have a pretty set schedule.
When starting a small business, the goal should not be to become wealthy. Although with the right idea, this is certainly possible. When working for someone else, the pay is limited. A business that is run well enough can make money with an absent employer. It would be difficult to make money while absent from a day job.
A lot of people struggle with finding tax deductions. The employed with no mortgage or dependents have very few write-offs. A small business is a powerful write-off machine. One can deduct just about any cost of running their business, including a car lease, office supplies and even Internet service. Though one should always get the advice of a lawyer or CPA for any tax issues. With retirement accounts, there are incredible ways to save an enormous amount of tax free money depending on the profits of the business.
Running a company is a lot of work and can be stressful. The marvellous thing is many people start a business out of a passion. Whether they like kayaking or baking, they follow their dreams. When one is working in a field they love, they are not working at all. This is hard to accomplish working for someone else as the pay would be much less lucrative.
Anyone looking to start their own company should weigh the pros and cons. For some, it is the next inevitable step. For others, they may still need the stability a solid job offers. Any business idea should be pursued, at least on a part time basis.
Rory Michelle writes about business, finance & more at www.homeinsurance.org.