Over the pandemic, many have felt the entrepreneurial spark light up, with over 375,000 new businesses starting over the Coronavirus pandemic.
The decision to run your own business is now made easier with the use of helpful apps, which allow you to conduct different aspects of the business in house.
Whether your desire is a more flexible lifestyle, or you simply want more control over your earning potential, there are many benefits to running your own business.
Let’s dive into what these benefits are, in addition to taking a look at some of the risks you may need to consider.
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What are the benefits of running your own business?
Running your own business leads to many benefits that impact you personally, such as independence, having a more flexible lifestyle, the financial rewards, diving into your passions and getting to choose your own team!
Although there are often some risks that come with running your own business, the personal fulfilment and rewards make it a worthwhile venture.
Let’s go into more detail on those benefits.
Independence
One of the most attractive things about running your own business is the ability to be your own boss. As a business owner, you are able to pave your own way and have complete control over business decisions. One example is creating the culture of the company. Many startups often cultivate a more laid back and inclusive culture rather than the rigidity that often comes with corporate working.
Additionally, with independence comes the freedom to best steer your company in the direction you’d like. Although it can be overwhelming, it is hugely satisfying to be able to put on many hats within the business and make key decisions, without delays that come from having to gain approval or get the go-ahead from higher members of the company. It allows the flexibility to be proactive and react quickly, especially with new clients.
You also have the freedom and independence to create systems and routines that work best for you and your business, rather than adhering to a structure that already exists. For instance, you could enjoy an afternoon power nap to boost creativity and productivity, without having to push through the afternoon or explain why you disappeared for thirty minutes in the afternoon to your manager!
Flexible Lifestyle
When running your own business, there is far more opportunity for flexibility. Instead of a typical 9-5 role, you can work at times that suit you better whether you’re a night owl or an early bird. This increases your productivity as you are able to work during your most optimal time and completely within your own comfort, even if that means working in a nightgown!
On top of that, it offers flexibility with your work/life balance as you do not have to ask for time off if you wanted to spend more time with your family. For instance, if you are raising a family, you could choose to work later in the evening once the little ones have gone to bed so you are able to balance family life and having a successful career.
With the portability of technology, it’s easier to work outside of an office, which means you are not restricted to one place. Thus, you are able to travel as you work. This is especially attractive to people who want to enjoy travelling without having to book time off or limit their adventures.
The flexibility that comes with running your own business is attractive to both millennials and Generation Z workers, who are known to search for flexibility in their roles, in addition to those who are close to or have already retired. It allows people in all stages of life the flexibility to both build a strong career as well as prioritising and enjoying different aspects of their lives.
Financial Rewards
Being directly impacted financially by the success of your own company is a huge benefit to running your own business. As an employee, you are not personally rewarded as you would be when owning your own company, and having more to gain in this way is a fantastic motivating factor. Thus, you are more committed to working hard to grow your company and achieve success.
Additionally, working for yourself gives you the opportunity to create more money than if you were working for someone else. When it comes to running your own company, you have the freedom to set prices and grow your salary within the business.
Personal Fulfilment
There is much satisfaction to be gained when running your own business as you are able to work in a field that you are passionate about and that enjoy, making the experience a lot more personal. This means entrepreneurs are more likely to work long hours and invest more effort into running their own business, as it does not actually feel like work!
There is a sense of pride that comes from getting to build and grow something of your own, in addition to getting to action your own ideas and watch them flourish. Running your own business allows you to gain a feeling of fulfilment as you make your dreams a reality, which in turn makes the hard work and long hours feel worthwhile.
Everyone remembers the early days with one or two employees and the satisfaction that comes from then creating a thriving business with many people, systems and clients. When working for someone else you are helping them grow their dream, but with your own company, you are watching your own passions come to fruition.
Dynamic Workflow
No two days are the same when running your own business as at the start, it is a one-man-band. You will single-handedly run every department from Sales, Content Creation, HR, Accounting and whatever else is necessary.
It is a great opportunity to truly upskill and maximise your abilities as by being involved in all aspects of the business you are able to gain an in-depth understanding of a range of different aspects of the business.
Once you have grown your company and are in a position to hire the relevant people to head up different departments, you get to handpick your team! This gives you the opportunity to choose a team of people you get along with, creating a positive work environment to help grow the business.
Directly Helping Clients
Launching your own small business allows you to make a direct impact on your local community, helping improve the quality of life for others. Whereas an employee, you are somewhat removed from the client as a business owner you are client-facing and therefore directly impacting your clients.
Additionally, by running your own business you are also creating opportunities for people locally in terms of providing job opportunities. For example, if you decided to open your own car wash company you are directly impacting clients who need their car washed, in addition to opening up jobs for students during the summer holidays.
What are the risks?
As with anything worth doing, there are some risks to consider and prepare for when deciding to run your own business. It takes a high level of commitment and passion to put in the long hours needed to get your business off the ground. So, here are some factors to be aware of when thinking about running your own company.
Financial risk
It does take some time before you start gaining a profit or income, and when first starting out you may need to dip into your savings, get investments and loans and may even get into debt.
There is also personal liability, as you may put your car or home at risk should the business not succeed. It is worth considering how risky your business idea is.
However, a good business plan alongside a business structure that protects your assets will help move you towards business success!
Time Commitment
To build a successful business from the ground up, you may need to sacrifice some weekends and evenings. Running your own business requires a huge commitment, especially as from the start it will mostly be just you trying to run all aspects of the company.
Although you do have the freedom to take time off whenever you like, the responsibility of the business is on your shoulders so you may not necessarily have the time and capacity to get away, whereas when working for someone else you have a little more freedom and peace of mind.
It is also up to you to complete time-consuming takes which may not be within your wheelhouse of skills and talents – such as contracts, legislation and accounting.
Stress
Burnout is a real risk for small business owners, as you do need to work tirelessly to get your business off the ground and often, it does take a while before you get to reap the rewards.
As a business owner, the responsibility falls on you to take several different factors into consideration at once such as bills, replacing equipment, issues with customers, on-boarding new clients, competition within the industry and much more.
Additionally, as much as you would like everyone to work as hard as possible to help achieve the success of the business, it is also your concern as the business owner to consider the well-being of your employees and create a nourishing work environment.
How do I start my own business?
Following the right steps and having a solid business plan in place will help reduce the stress that comes with running your own business in addition to increasing your likelihood for success.
Here is a list of what you need to do when starting your own business.
- Determine if it is the right type of business. Consider whether this is the right type of business that suits you and whether there is a market for this type of business too. It is useful to become familiar with your target market so you can determine whether this business will be useful and relevant.
- Use a break-even analysis. It is important to decipher whether your business can make money. In short, a break-even analysis works out how many sales are needed in order to pay for the cost of running the business. This includes looking at pricing alongside the level of demand to understand how many sales are needed to pay for your company’s fixed costs.
- Create a marketing plan. It is essential to have a marketing or advertising strategy with goals and actions to know how to get your product and service known and out to the public.
- Create a business plan. Not only are business plans important to understand your goals financially, operationally and from a marketing standpoint and how to achieve them, but this is the document that will help get investors interested in your business idea. You should review and update your business plan accordingly perhaps every quarter or longer if need be.
- Incorporate. Registering your company is an important final step of the process and you can do this at no cost with the Ember app. Once incorporated through the app, you also get a Certificate of Incorporation, Standard Memorandum and Articles of Association in addition to share certificates, board minutes and access to all relevant registers. This takes all the fuss and trouble off your hands, making the process of incorporating your company a seamless one. Ember also pays the £12 incorporation fee on your behalf, so you have one less expense to worry about!
Despite the risks when first starting out your business, there is much to gain as a business owner. Entrepreneurship is worthwhile when you have a product, service or idea that you are passionate about and you know can help make people’s lives easier too.
About Carson Derrow
