So You Want To Be An Entrepreneur?
Entrepreneurship isn’t an easy task and there are many issues you might want to evaluate before you even think about starting your own business. You will be in charge of every aspect of the company and that means a lot of responsibility. There are certain problems you will face as an entrepreneur that wouldn’t be in the scope of your job if you worked for a company.
Are you a “jack of all trades”?
Unless your company has the capital to subcontract, you will find yourself doing several different jobs. You will need to take care of legal items such as licenses, permits and taxes. You will be in charge of marketing and since the money comes out of your pocket, it will need to be extremely successful. You will be in charge of Human Relations. Finding customers and maintaining relationships is an important part of entrepreneurship. In essence, you hold every job position in the company.
The Five Roles of a Great Leader
Do you have a social life?
The success and failure of the company rests in your hands and it is up to you to make sure that everything gets done on time. Entrepreneurs don’t always work a 9-5. Extra hours are usually required to make the company successful. This can mean working up to 16 hours a day and working on weekends and holidays. A successful starting entrepreneur works 70 hours per week on average, compared to the 40 hours an ordinary employee would work. As an entrepreneur you will need to find a balance between work and social life.
A Day in the Life of a Small Business Owner
Blending Vs. Balance
Can you afford it financially?
Owning your own company means you have to pay for everything. As a designer, the startup costs can be relatively low. Computers, software, office space, and a few other supplies are about all you need. However, there are many other costs. Pension, health, and insurance all have to come from your own pocket. You also need to have an emergency fund available. A good rule of thumb is to have enough money to pay wages and produce goods for a month. Since technology becomes outdated quite frequently, computers and software will need to be purchased more than once.
Tips to Calculate Startup Costs
Starting Costs Calculator
Can you deal with failure?
New businesses have a high failure rate. As a first-time entrepreneur, you will encounter failures. Learning from your mistakes instead of pointing the blame will increase your success. You will also find that the income isn’t always steady. You need to manage your company to deal with the down times. There are also some people who would rather work with an agency than a single freelancer. Be prepared for this. Additionally, it is your responsibility to find customers, which can be problematic. You also need to accept failure. If your company isn’t successful, know when to pull the plug. Keeping an unsuccessful company running is not a good business strategy.
Don't Fear Failure
Failure Isn't Fatal
Further Reading
Freelance Drawbacks – This is from the perspective of a freelance writer, but has a great deal of significance.
Drawbacks of Self-Employment
Drawbacks of a Home Business