CEO Insights

The Pros & Cons of Starting Your Own Business

The professional world is full of ambitious thinkers who have their own ideas and potential self ventures. In this world, you're no different, but is self employment really for you? Know the pros and cons of embarking on your own startup. There are many examples entrepreneurs can learn from, but for every startup that flourishes, many fail. Here are some things you should look at before you pour your time and money into your own business.

Financing

Your idea for a new startup is only the seed, and you'll need some way to finance you're new endeavor. Take Tim Ferriss, the creator of BrainQUICKEN, for example. He financed his own startup by working for a data storage company where he made enough money for bills and rent as well as enough extra for the bank roll of his new nutrition startup. Chances are you'll need a similar job that affords you the money and freedom you need, while also providing enough of a salary to live on. Lifelock, for example, is an identity theft prevention service that provides benefits, college tuition assistance and chances for advancement in the company itself. The work at companies such as LifeLock rewards employees and promotes the winning work ethic essential for young entrepreneurs.

Cons, First

Lets get the bad news our of the way: many startups fail. In fact, according to Forbes, 90 percent of startups go nowhere. And it's difficult to succeed. First of all, any venture you undertake will cost you a large financial risk, with no guaranteed return. Second, you may find yourself required to work long hours and long hours can be used managing small tasks and logistics, because those you employ don't have the same passion or attention to detail. Third, there will be some people who feel they are right for your startup, even though they don't fit in. You might need to fire people who don't fit the work ethic or even refuse to hire a friend who you feel isn't right for the company. When you're your own boss, you end up being others' boss as well. Last, you'll always need to learn new skills and disciplines, ones you don't particularly enjoy, such as bookkeeping or data analysis. While these tasks may put a gloom over your ideas for the future, once you have a market share, delegation is then your prerogative.

Pros, So You're Optimistic

Every entrepreneur starts with the difficulties above. But they also benefit from a variety of freedoms. You have more flexibility in your schedule, for starters. You'll also have complete control over the creative directions of the business, though keep in mind that you're then responsible for any failures that accompany it. Of course, this also means you are responsible for the successes. If you've never played well with others while on the job, if your division has always been, your way, or the highway--if you're ambitious and enjoy the work and struggle of long hours, and risky creation, then you have the makings of an entrepreneur.

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