Is an Entrepreneur Life Right For You?

While we all dream of Tim Ferris’s 4 Hour Workweek and taking time to travel the world on our luxury yacht, the entrepreneurship dream takes a lot of hard work and dedication.

Longer Hours

If you work 40-45 hours each week during normal business hours, and like it, running your own business may not be right for you.

Business owners tend to work longer hours and have a lot more to do in a work week than their corporate office counterparts. Business owners often work 100+ hours per week, including time on weekends, to ensure they can get everything done.

Depending on the nature of your business, you may have to be there during operating hours. Retail hours may force you in over 12 hours a day. Service businesses may require you work at odd hours to meet customer demand.

Let’s just say that predicable, 40-50 hour weeks are going to be a distant memory if you decide to start your own company.

Paycheck Uncertainty

If you like getting a set paycheck every two weeks like clockwork, running your own business may not be right for you.

In the beginning, many entrepreneurs have to “bootstrap” it. Bootstrapping means you live off of your savings and fund any business development yourself. You can’t count on making a lot of money early on, so you have to live at a low cost and skimp where you can to get by.

According to Credit Donkey, after five years 50% of small businesses have closed. Only 35% make it to 10 years. Businesses close due to a variety of reasons, but the most common include lack of experience, insufficient capital, poor location, and poor inventory management.

Even if your business doesn’t fail, you have to earn enough money to cover your overhead, operating costs, and pay your employees before you get paid.

Self-Reliance

If you like working somewhere stable where a team of people work to ensure your company is successful, running your own business may not be right for you.

When you start a company, everything falls on your shoulders. Keeping customers happy, keeping inventory managed correctly, budgeting time and expenses, paying your staff, keeping legal and tax records, and every other aspect of running the business.

Your success and failure are 100% up to you when you own a business. You can’t blame others or count on others. Sometimes you can’t even count on your partners. Your success is in your hands.

Corporate Jobs are Good for A Lot of People

It is easy to find a long list of reasons why owning a business is a good idea. You keep the profits, you control your schedule, and you don’t have a boss at work. But don’t think it is all fun and games.

As a business owner, you and your family may suffer from poor results, you may have to work longer hours, and everyone has a boss (your customers) to report to.

Many small business owners crave a 40 hour work week, a steady paycheck, and a lower stress environment. Some people thrive on the pressures of owning a small business and love the lifestyle.

At the end of the day, you know yourself the best. Think long and hard before making the jump to entrepreneur. The grass is always greener in the next pasture, but you might have it better than you realize.