Do you ever dream of escaping the rigidity of a 9-5 job for the freedom of being your own boss? Perhaps you envision working from home or a vacation destination, or maybe you would simply like more control over how you do your job. Regardless of your motivations, the idea of owning a business holds a strong appeal for many people—particularly those who feel stifled as employees. And for dedicated entrepreneurs who understand the risks, responsibilities, and potential downsides of business ownership, it can be the key to a successful and rewarding career.
However, owning a business is not for everyone, and determining whether it is right for you requires a careful examination of the pros and cons. Here are some examples of the ways that business ownership compares to being an employee:
Pro: Freedom. This is the most compelling advantage of owning a business for most aspiring entrepreneurs. As a business owner, you have greater flexibility in deciding which hours you work, when you take vacation, and whether you work remotely some of the time or take a more hands-on approach. In addition, you have more control over your career trajectory than you would as an employee. When you work for a company, your progression is often determined by job titles and performance reviews. As an entrepreneur, on the other hand, you can choose to proactively grow your business, hiring employees and opening new locations with the goal of maximizing your profits—or you can proceed at a steady pace that allows you to prioritize work-life balance and remain closely involved with the business.
Pro: Personal fulfillment. As an employee, it can be difficult to see the link between your hard work and the company’s success. But when you own a business, you are the main driver behind its success. You will directly experience the benefits of the decisions you make and the effort you put forth. In addition, you may gain a sense of personal fulfillment from having a positive impact on the lives of your employees as you provide them with opportunities and help them develop new skills.
Pro: The potential to earn significant income even when you are not actively involved in the day-to-day operations of the business. It may take a while to reach this point, but once your business becomes successful enough and you have systems in place that allow your employees to manage operations, you will have more flexibility to spend time away from the business—while making money. This highly attractive benefit is not available to most people who work as employees.
Con: Inconsistent pay. As an employee, your monthly paycheck is typically the same, allowing you to easily budget and plan your financial future. For most small business owners, on the other hand, income varies from month to month as the profitability of the business fluctuates. It is crucial to understand this and be comfortable with volatility before taking the leap into entrepreneurship. On the plus side, your potential income as a business owner is not limited as it is with a steady paycheck.
Con: Risk. Because you invest your own money to start a business and keep it running until it is profitable, there is the risk that if the business does not succeed, you will lose some of your savings. Many people are deterred from entrepreneurship because they are not comfortable with this risk and prefer the relative security of employment. As you pursue opportunities for business ownership, it is important to be honest with yourself in defining your own tolerance for risk.
As you weigh the pros and cons of owning a business, keep in mind that franchising offers a unique system that makes it an excellent option for those who are new to entrepreneurship. Franchise owners enjoy most of the benefits of having a business, including freedom and flexibility, a sense of personal fulfillment, and the opportunity for passive income. However, they experience less risk and a better chance of becoming profitable sooner because franchises already have an established brand and proven business model in place. Franchise owners also benefit from the support of the parent company and other franchisees, which helps them navigate the challenges of entrepreneurship.
Do you believe that owning a business is right for you? Call us today at 303-805-5078 to get started on this exciting path and learn more about the advantages of franchising!