Think before you leap - 2

I find it very amusing when people assume that just because you are self-employed or own a business, you have no financial woes. During the course of my work over the years, some of the most hard-working people I have met have been self-employed. The temptation of venturing out on your own is very alluring for most of us; you set your own timings, you are the boss etc., but like everything else in life there is a dark side to this misconception.


Firstly, the requisites for starting and owning a business doesn’t involve just money, it consumes your time and encroaches on your personal life too. Be sure your family is involved and mentally ready for what is going to be a life-style changing decision.

 Be prepared for a free fall, if you fail. There is no safety net of employment insurance, health benefits and paid vacations.


 You are on call 24/7 and responsible not just for yourself but the employees who are working for you. Be prepared to get calls after midnight – a break-in, a robbery or an employee who just didn’t turn up for work.


 Getting paid overtime is great as an employee, but not so great when you are a small business owner. Labor laws favor the employees and that’s great for people working for big corporations, but for a small business person, a raise in the minimum wage from 8$ to10.25$ can make a lot of difference.

Sustaining during slow periods of your business cycle can be challenging as well as trying to maintain your profit margins in this slow economy. Unlike a job, where if you don’t work , you might not get paid, in business, you have some obligations like rent and other bills to pay whether or not you are making any money. The responsibility can get overwhelming sometimes.

So, if you are decided to go ahead, tighten up your seat belt,sit tight and enjoy the ride- for although it can get bumpy at times, you won't know what you have missed if you don't take the chance!