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Old 06-26-2009, 12:59 PM
 
1 posts, read 2,434 times
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Hi! Everybody would agree that there are many advantages to run your own business. You have no bosses, no schedules. You work for yourself and are very flexible. Still, not many people start their own business. So I ask you: why? What are the reasons for this? Is it not enough money? Or connections? Or courage?
In Internet you can find numerous guides how to start working for yourself with a lot of pros listed. But let us list those cons which prevent us from being self-employed.
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Old 06-26-2009, 01:18 PM
 
Location: Central Ohio
10,569 posts, read 13,749,571 times
Reputation: 15518
Quote:
Originally Posted by bilike View Post
Hi! Everybody would agree that there are many advantages to run your own business. You have no bosses, no schedules. You work for yourself and are very flexible. Still, not many people start their own business. So I ask you: why? What are the reasons for this? Is it not enough money? Or connections? Or courage?
In Internet you can find numerous guides how to start working for yourself with a lot of pros listed. But let us list those cons which prevent us from being self-employed.
Know what you do and know it well.

Be prepared to work 80 hours and get paid for 20 in the beginning.

Being your own boss is wonderful, you get to pick what 80 hours of the week you want to work.
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Old 06-26-2009, 02:21 PM
 
Location: Chicago, IL
8,998 posts, read 13,936,085 times
Reputation: 3544
Lack of affordable health insurance
You aren't guaranteed a pay check
In some places, the taxes you have to pay for owning a small business...oh goodness. It's so unfair how many breaks "big boxes" get in this country compared to the locally owned businesses.

I think fear is a big motivator as to why a lot of people aren't starting their own business. In this time of recession, a lot more people are flocking to the local big box rather than supporting local businesses and they think the big boxes will give them a better deal.
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Old 06-26-2009, 02:24 PM
 
13,808 posts, read 24,860,362 times
Reputation: 14178
My sister in law started a pole dancing studio, it's been open a year now. It's just starting to break even.
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Old 06-26-2009, 02:57 PM
 
Location: Pennsylvania
5,726 posts, read 10,846,453 times
Reputation: 9780
Quote:
Originally Posted by PurpleLove08 View Post
Lack of affordable health insurance
You aren't guaranteed a pay check
In some places, the taxes you have to pay for owning a small business...oh goodness. It's so unfair how many breaks "big boxes" get in this country compared to the locally owned businesses.

I think fear is a big motivator as to why a lot of people aren't starting their own business. In this time of recession, a lot more people are flocking to the local big box rather than supporting local businesses and they think the big boxes will give them a better deal.
Bingo.
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Old 06-26-2009, 03:06 PM
 
975 posts, read 1,658,315 times
Reputation: 524
Quote:
Originally Posted by bilike View Post
Hi! Everybody would agree that there are many advantages to run your own business. You have no bosses, no schedules. You work for yourself and are very flexible. Still, not many people start their own business. So I ask you: why? What are the reasons for this? Is it not enough money? Or connections? Or courage?
In Internet you can find numerous guides how to start working for yourself with a lot of pros listed. But let us list those cons which prevent us from being self-employed.
Having owned a business I can tell you firsthand none of this is true.

No boss? Ha! Your clients, customers are your boss and they can be 100x worse than the worse boss you ever had.

No schedule? True in sorts. No need to have a schedule when you work 24/7/365. Anything less for a few years and you'll either fail altogether or make far less than just getting a job.

Flexible? Yeah, be flexible in the rest of your life so that you can attend to your business whenever you need to.

Owning a business is a huge responsibility. This nonsense about being your own boss, living life on your own terms is flat out a lie. Yes, after a few years of giving everything you have to your baby(business) you "might" achieve that. The truth is though if thats what your looking for you'll probably fail.

When you own a business it's all about failing or succeeding. If your competition is hungry, you better be more hungry. You also better know how to manage money and people. Every dime counts and over the course of time those dimes add up to 1000's of dollars and determine whether you win or lose.

As for money to get started that depends on the type of business. I started with 4K and a credit card and made 150 K first year.

Connections? They don't hurt. But more importantly, you really shouldn't go into a business you don't know. And if you know the business you probably have connections in the industry. I can't stress this enough. If you want to succeed you've got to know the business model for that type of business.

Courage? Yes you need courage I suppose. When problems arise the buck stops with you and if you don't have the answer then you're screwed. Of course, you could do like I did which is just make the best decisions you can and hope you're right. Sometimes that works, sometimes not.

You also need to be a leader. It's really, really hard to make any money as a one man show. You need employees to do the work while you supervise, guide, train, teach, motivate, disipline and lead them in the direction that allow everyone to succeed. Most of those people just want a paycheck and think that because you're the owner you're rich. Managing employees is critical to success, imo.

You also need to be a good, if not great, negotiator. If your paying more for the same services and supplies and collecting less for your service/product that won't work.

In addition, at first you need to be the Sales Mgr, the HR mgr, the CFO, the COO, the Marketing mgr, the Customer service mgr, the receptionist, the bookeeper and the janitor.

Funny story, while I was all those things at first, at about 5-6 years the people filling those spots did a much better job than me. I remember going into shipping one day when they were busy and telling them, "hey let me help you guys" ( I like packing things, weird i know). Anyway, after about 10 minutes it was obvious that I was just in the way and these people were running circles around me. The Mgr came over and asked me to leave..LOL! Anyway, I digress.

The best part of owning a business is the pride you get from building something out of nothing against all odds. And no matter how well your plan is you'll look back and think, "how in the world did I ever do it?".
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Old 06-26-2009, 03:21 PM
 
Location: Happy wherever I am - Florida now
3,360 posts, read 11,589,118 times
Reputation: 3868
When you own your own business you might as well place a big red target in the middle of your forehead.

Every tax man, rule generating politician, set of incoherent laws, scam artist, ambulance chaser, irate customer, corrupt employee and anyone else can and will go after you simply because. Not always the case but right or wrong they sure can cause problems and a lot of sleepless nights.
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Old 06-26-2009, 04:06 PM
 
Location: Central Ohio
10,569 posts, read 13,749,571 times
Reputation: 15518
Quote:
Originally Posted by Sgoldie View Post
When you own your own business you might as well place a big red target in the middle of your forehead.

Every tax man, rule generating politician, set of incoherent laws, scam artist, ambulance chaser, irate customer, corrupt employee and anyone else can and will go after you simply because. Not always the case but right or wrong they sure can cause problems and a lot of sleepless nights.
Traderx hit it right on the head.

I owned my own business for 20 years and I did do well but not as well as my employees thought I did. But if I had made just half the money my employees thought I did I would have retired 15 years ago.

Unless you have done it you have tax authorities after all that wealth you have that you can not even begin to fathom exist.

Company paydays were on Thursday and many times my payroll check stayed in my desk, sometimes for a month or more, so I would always be sure to make payroll. You haven't lived until you lay awake at 3:00 AM on a Wednesday morning wondering where you can get the money to make sure that $14,000 payroll you must hand out on Thursday morning is good.

I always handed payroll checks out on time and they were always good.

Over the 20 years I literally had some 90 and 100 hour weeks. Nobody could do it but me and if I didn't do it I went broke. All that time off? It was ever so rare I would work less than 48 hours in a week.

In your own business you are competing against people with a lot of experience and they are hungry right now. Good luck making a profit.

90% of your employees will ********* over in a heartbeat if you ever give them a chance. Loyalty has never meant a thing ever. Hogwash to ever think there was loyalty either way.

I got rid of my business because I was getting older and didn't want to deal with it in my 60's. Went to work for someone else taking a 30% pay cut but I wouldn't want to do what I once did if you doubled my pay.

If you work for someone he deserves every sent you think he is getting. Might be double or triple what you make but he deserves it.
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Old 06-26-2009, 06:15 PM
 
Location: Houston, Texas
10,435 posts, read 47,313,746 times
Reputation: 10528
Traderx is right on on all counts. Let me add a few other things.

In this world there are leaders and there are followers. The vast majority are followers. Followers are also those who like and trust their govt and the local pigs who would like us to believe they are protecting us. It takes a strong leader to start and run successfully any business. No one wants to deal with a wimp.

I knew from my first job out of high school that I was better and smarter then the clowns who ran that company. Within a year which I guess made me about 19, I went out on my own and never looked back. It's been over 30 years now and I never looked back.

If you want to know if you are cut out to run a business, do you go into stores and know you can run it better then them? Do you try and figure out how you can turn that 10 cent company into a power house? Are you good with people? I know guys who are true craftsmen but they have zero people skills. Like Traderx said, you do have a boss and that boss, the customer is far far far worse then any manager type boss. You can tell your employer boss that his wife looks like a skank but your customer boss you have to swallow all kinds of abuse. You can rewrite your contracts over and over and over to cover all the new things you learn a human can toss at you and still another new customer tops them all.

Many people, followers get some sort of comfort with that guareneed pay check every week for the same amount of money. They get through their boring day by thinking about how many hours they worked so far and they multiply that by their scab hourly wage to come to an amount they earned so far. Leaders enjoy the challenge of making $4000 one week, $100 the next, zero the next and $5000 the next.

I will never work for some slob at the expense of my own time and pride. I feel it is better to live on my feet then to die on my knees.

And by the way, I can't wait to get to work every day and I been saying that for 30 years.

Last edited by desertsun41; 06-26-2009 at 06:17 PM.. Reason: add
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Old 06-26-2009, 07:23 PM
 
Location: Western Washington
12,136 posts, read 10,883,885 times
Reputation: 20136
I will add to the compliments for traderx.

I owned my own business for a little over 5 years. Profitable every year, but I certainly did not get rich.

Before you start your own business, think about some of the things that might be necessary.

If you need to rent real estate for a storefront, office or warehouse, are you comfortable signing a personal guarantee covering a 3-5 year triple net lease? If you don't know what it means to sign a personal guarantee, or triple net, start doing some homework.

Remember that any expenses you have MUST be paid before you pay yourself, otherwise your business is going to fold. This means you not only have to pay all of your employees wages, but tax withholding, professional services (legal and accounting), utilities, advertising, IT, supplies and vendors. Stop paying them promptly and you will be in legal trouble, cut off, or both.

Need a line of credit from the bank? Be prepared to guarantee all of your assets (house, 401k, car) as collateral.

Have you thought about what you are going to do with your assets that cannot be sold? Merchandise that is ruined, food that spoils, expenses you put into bids that are not awarded contracts?

This stuff is all very expense, and you need to know how you are going to pay for it, before knowing if you will actually get any customers/clients and have any money coming in.

As for a boss, the pressure of working for yourself is much higher than that of working for somebody else. If you don't feel it, you will most likely not be successful in business. I put in 50 hour weeks at a slow time of year, and regularly put in 80 hour weeks during a busy time.

Are you able to make decisions quickly, including really tough ones? Are you willing to lay off workers if a tough competitor opens up? How about spending $20K on a new vehicle to expand your business, knowing that it will be 2-3 years before it really pays back?

Business is risky, and costs a lot to start. If you have the capital to start one, you need to be aware that you might lose every, single penny.
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