Many people today are sick and tired of being sick and tired. And according to a recent survey, 82% of workers today would rather be in business for themselves than have somebody pull their leash like a dog all day long. Together, many feel they are unappreciated, unsatisfied and under paid. However given the statistic above, let me add that only 3-4% of the 82% actually do something about their current situation.
Venturing into business waters is alien to these groups of people and for good reason. Did you know that 95% of all start-up business fold up in their first year of business? And did you also know that only 2% of the 5% survive for more than 5 years operation?
For them, the idea of having job security is more important than the possibilities of making more money in businesses but with no guarantees. They would rather get stuck with employment benefits than stick their necks out for economic insecurity in the business world. Uncertainty creates fear in them. Because of this, they would rather complain about their frustrations inside the employment circle than risk being jobless.
However there is a minority of people who want to be their own boss. They have a different mind set. These people hate the idea that the amount of money they can earn is dictated by someone else or by a group of people who might work lesser than them. These people want independence. They want to control their financial destiny. That’s why most of them become sole proprietors of their own businesses. For most of them, participating in a business opportunity makes more sense than being a spectator on the sidelines with no other options.
Keeping it all versus unlimited liability
For the self employed type, the positives that come from operating your own and making all the income for yourself out weights the capital risk. True that in most instances, a sole proprietorship exposes an owner to unlimited asset and capital risk and probably debt but having the option to making more per hour and make right decisions can avoid such risks. If business operations becomes too costly they just shut down operation reducing overhead costs.
Work for myself versus the risk of losing everything in the event of a disability
People in this area are focused on improving their trade. True they may work longer hours than employees do but at least they are working on what they love to do. They are also looking for ways to pass their businesses to the next generation which you can’t do in an employment arrangement.
Controlling your own schedule and input versus no guaranteed income outputs
Sole proprietorship business like a networking business allows owners to schedule their business networking times on schedules that suit them. Another area that they can control is the amount of input or effort they put into their business. Because of this set up, an owner can work 4 times a week as he chooses too but make 20 presentations. However like a hair cutting business, you can not guarantee a fixed amount of income to come in because it will depend on client buying habits.
Truly there are clear advantages and disadvantages in being in business for yourself. The key in become successful though is learning to manage these risks.
