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Should You Be In Business For Yourself? Some Pros and Cons

Should You Be In Business For Yourself? Some Pros and Cons

    I write a lot about personal finance. I hear a lot about how different employers are handling the current economic crunch and, lately, what I’ve been hearing makes me pretty uncomfortable about working for a long list of companies. Some employers are slashing benefits — effectively cutting their employees’ salaries while inflation reduces their buying power.

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    I want to suggest entrepreneurship as an alternative, but I realize that it isn’t a great option for everyone. I’ve been putting together a list of pros and cons in an effort to decide whether starting up a business is really a good idea for some people, especially in the middle of ongoing financial problems. I’ve tried to stick to financial and business issues  while it’s nice that many small business owners can spend more time with their families, I don’t think that’s the biggest issue for many folks considering entrepreneurship right now.

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    The Pros

    1. If your employer is letting you go, offering early retirement or using another euphemism for firing you, it may be hard to find another job immediately. Being in business for yourself allows you to immediately start working on making money, rather than proofreading your resume.
    2. Without the middleman (a.k.a. your employer) you can charge significantly more for your services — along the lines of what your employer was charging for your work.
    3. You don’t have to go whole hog into running your own business. You can try out your business on a part-time, evenings and weekends, basis while still working your current job.
    4. It can be easier to pick up overtime if you no longer have to get your manager to sign off on it. If you run your own business, overtime is a matter of finding another client or customer.
    5. The cost of working at home is much lower than for your employer: you don’t have to pay to commute, you can eat inexpensively in your own kitchen and you only have to meet a dress code when you’ll actually be seeing a client. And, while this isn’t particularly noble, you can avoid the constant birthday parties, baby showers and other office events that constantly drain your time and your wallet.
    6. Just about all of the expenses associated with your business are tax deductible. Running your own business can make your tax burden significantly lower — and a surprising number of things are considered business expenses, like conference registrations.

    The Cons

    1. While getting health insurance without an employer providing it isn’t impossible, it can be pretty difficult — especially if you actually need. Pre-existing conditions can make it absolutely impossible to get health insurance on your own.
    2. With a job, if you aren’t quite on the ball one week, you still get paid. But if you fumble on your own business, you can wind up losing money. Even if you have a contract, sometimes things can go very wrong. An employer absorbs those problems, but can you do that if you’re on your own?
    3. There are some great jobs that simply aren’t possible to do in a small business that you’re just starting yourself. If you have one of those jobs and you like it, why mess with a good thing?
    4. It’s all well and good to jump off the deep end if no one’s depending on your earnings. But if you have a family or other dependents, you have to be absolutely sure before you strike out on your own.
    5. You have to buy your own equipment when you run your own business: no more company laptop — or printing out your personal stuff at work. A computer, a printer, maybe even a fax machine: you’ll have to buy what ever you need for your home office.
    6. There’s no such thing as vacation time or sick leave when you run your own business. You can certainly take time off when you need to — after all, you’re the boss — but you just don’t get paid when you’re not working.
    7. While the flexibility of working for yourself can be nice, more and more employers are offering flex time and telecommuting options. You can have a lot of the benefits of working for yourself without having to give up a regular salary.

    My Conclusion

    Freelancing, consulting, and running your own business isn’t for everyone. There’s a certain amount of security in working for an employer, even if that employer is considering cutting costs with little tricks like suspending 401(k) benefits. That said, if you’re comfortable with the risks, I think there are a lot of opportunities right now: even big companies are turning to freelancers and consultants to handle the workloads of those employees who suffered under a cost-saving measure. Either choice requires a lot of careful consideration and shouldn’t be made lightly.

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    There are plenty of situations that can negate the cons I listed, as well as the pros. I mentioned that there’s no such thing as paid vacation if you run your own business — you can get around that negative fairly easily if you concentrate on building passive income. A lot depends on your field, as well as whether you have the self-discipline to run your own company. Before you make your decision, research all your options. You might even consider doing a test run: with a lot of businesses, you can get a head start on things even while you’re still gainfully employed.

    Do you have any pros or cons to add? Please leave them in the comments.

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    Last Updated on June 20, 2019

    50 Businesses You Can Start In Your Spare Time

    50 Businesses You Can Start In Your Spare Time

    Most people want a few more dollars in their wallets. But between an employer and family, the time most of us can devote to a second job is severely limited. Running a small side business can provide a few more options: you don’t have to show up at a set time and you can use skills you already have. Not all will be perfect for everyone, of course, and I’m sure that you’ll have a few ideas of your own after reading this list. If you’d like to share any other business ideas, please add them in the comments.

    1. Selling collectibles — From antique books to teddy bears, there are plenty of opportunities to buy and sell collectibles. It’s important to familiarize yourself with the collectible of your choice but if you choose something that you’ve been collecting for a while, you’ve got a head start.
    2. Locating apartments — It can take time to sort through apartment listings, but you can make some money by finding the perfect apartment for a renter.
    3. Baby proofing — New parents often prefer to bring in an expert to make sure their home is safe for a new baby.
    4. Calligraphic writing — If you’ve got elegant handwriting, you can pick up gigs writing or addressing wedding invitations, holiday cards and more.
    5. Selling coupons — Search on eBay for coupons right now and you’ll see thousands of listings for coupons. It’s just a matter of clipping and listing what you find in your Sunday newspaper.
    6. Pet training — A surprising number of people don’t know where to start in training a pet. Even teaching Rover simple commands like ‘Sit’ and ‘Stay’ can bring in a few dollars.
    7. Running errands — A wide variety of people want to outsource their errands, from those folks who aren’t able to leave their homes easily to those who have a busy schedule.
    8. Researching family trees — Amateur genealogists often call in experts, especially to handle research that has to be done in person in a far off place. If you’re willing to go to a local church and copy a few records, you can handle many family tree research requests.
    9. Supplying firewood — The prerequisite for selling firewood is having a source of wood; if you’ve got some land where you can cut down a few trees, you’ve got a head start.
    10. Hauling — As more people trade in their SUVs for compact cars, hauling is becoming more important: people have to rent a truck or hire a hauler for even small loads.
    11. Image consulting — Image consultants provide a wide variety of services, ranging from offering advice on appearance to teaching etiquette.
    12. Menu planning — For many people, the trip up in eating home-cooked or healthy meals is knowing what to prepare. Meal planners set a schedule to solve certain dietary problems.
    13. Microfarming — Cultivating food and flowers on small plots of land allows you to sell produce easily.
    14. Offering notary public services — Notary publics can witness and authenticate documents: a service needed for all sorts of official documents.
    15. Teaching music — If you’re skilled with a musical instrument, you can earn money by offering lessons.
    16. Mystery shopping — Mystery shoppers check the conditions and service at a store and report back to the store’s higher-ups.
    17. Offering research services — Just by reading up on a topic and compiling a report on it can earn you money.
    18. Personal shopping — Personal shoppers typically select gifts, apparel and other products for clients, helping them save time.
    19. Pet breeding — Purebred pets can be quite value, especially if you can verify their pedigree.
    20. Removing snow — During the winter months, shoveling walks can still be a reliable way to earn money. You might be asked to take care of the driveway too.
    21. Utility auditing — As people become environmentally-concious, they want to know just how efficient their homes are. With some simple testing, you can tell them.
    22. Offering web hosting services — Providing server space can be lucrative, particularly if you can provide tech support to your clients.
    23. Cutting lawns — An old standby, cutting lawns and other landscaping services can provide a second income in the summer.
    24. Auctioning items on eBay — Want to get rid of all your old stuff? Stick it up on eBay and auction it off.
    25. Babysitting — Child care of all kinds, from babysitting to nannying, can offer constant opportunities.
    26. Freelance writing — If you’ve got the skills to write clearly, you can sell your pen for everything from blogs to advertising copy.
    27. Selling blog and website themes — Do a little designing on the side? Customers that don’t want to pay full price for a website will often pay for a template or theme.
    28. Offering computer help — Particularly with people new to computers, you can earn money by providing in-home computer help.
    29. Designing websites — It may require a little skilled effort, but designing websites remains a reliable source of income.
    30. Selling stock photography — For shutterbugs, an easy way to put a photography collection to work is to post it to a stock photography site.
    31. Freelance designing — Check with local businesses: you can provide brochures, business cards and other design work and get paid a good fee.
    32. Tutoring — Math and languages reamin the easiest subjects to find tutoring gigs for, but there is demand for other fields as well.
    33. Housesitting / petsitting — Stopping in to check on a house or pet can earn you some money, and maybe even a place to stay.
    34. Building niche websites — If you can put together a site on a very specific topic, you can put targeted ads on it and make money quickly.
    35. Translating — The variety of translating work available is huge: written word, on the spot and more is easy to find even on a part-time basis.
    36. Creating custom crafts — No matter what kind of crafts you make, there’s likely a market for it. Etsy remains one of the easiest places to sell crafts.
    37. Setting up a wi-fi hotspot — With a little bit of equipment, you can set up a wi-fi hotspot and charge your neighbors for the access they’ve been ‘borrowing.’
    38. Selling an e-book — You can write an e-book about almost anything and put it up for sale online.
    39. Affiliate marketing — If you’re willing to market other companies’ products, you can earn a cut of the sales.
    40. Renting out your spare room — From looking for a long-term roommate to listing your guest room on couch surfing sites, that spare room can make you money.
    41. Offering handy man services — Handling small household tasks can provide you with plenty of work, although you’ll probably be expected to have your own tools.
    42. Teaching an online class — Share your expertise through a website, an online seminar or variety of other methods.
    43. Building furniture — For those with the skill to create handmade furniture, selling their creations is often just a matter of advertising.
    44. Providing personal chef services — Personal chefs prepare meals ahead of time for customers, leaving their customers with a full freezer and no mess.
    45. Event planning — From planning corporate events to bar mitzvahs, an event planning business can require plenty of work and offer plenty of pay.
    46. Installing home safety products — Particularly as Baby Boomers age, people able to install handrails and other home safety products are in demand.
    47. Altering / tailoring — If your sewing skills are up to par, altering garments is coming back as people try to stretch more wear out of their clothing.
    48. Offering in-home beauty services — Hair cuts, makeup and other beauty services that can be performed at home have a growing demand.
    49. Business coaching — Helping others to establish and develop their businesses can provide many opportunities to earn money.
    50. Writing resumes — Writing resumes can provide a reliable income, especially if you can put a polish on a client’s credentials.

    There are plenty of offers that claim to provide you with the opportunity to make thousands of dollars a week. Unfortunately, none of these businesses will provide that sort of income, but they aren’t scams either. They were chosen because they all require a minimum investment to get started — some require nothing more than a flyer advertising your business. Even better, if you do enjoy any of these businesses, there is a potential with most of them to continue to expand — perhaps even to the point of going full time.

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    Featured photo credit: Omar Prestwich via unsplash.com

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