Do you really want your own Internet business? Do you really want to be your own boss? If so, there are certain things you need to put into consideration to avoid disappointment and failure. For starters – let’s be honest, not everyone is made to be an entrepreneur. But often this does not become obvious after the fact of trying to be your own boss. I am not sure if that happens due to misleading information about what it really takes to be your own boss or if certain skills are missing to have success as an entrepreneur. Anyway, here is a list of items you will need to put into consideration when thinking about going self-employed (no matter online or offline).
1) Business & Life will merge
When you leave work (as an employee) you leave work. You go home and do not have to do anything until the next morning. As a small business owner you don’t go home and forget about your business until the next morning. You never really leave work. Your life will juggle around work and not vice versa, Chances are when you start your business you won’t be working 8-5. Expect to put in 12-14 hour days. Expect to leave the office just to come home and continue to work after a short break. If you are an online entrepreneur you will most likely check emails whenever you can. If you work from home you will find yourself in front of the computer after your wife and children went to bed. You might be concerned about leaving for the weekend camping trip with your friends or family due to losing control of your business. What if your websites go down and nobody’s there to fix it? Stuff like that will take control of your actions and how your life will be shaped around your new priority in life – your own business.
2) Kiss Job and Income Security Good-Bye
Unless you are a well established business with existing income your security of having a steady pay check week by week will be a think of the past. If you take money out of your business as a salary or commission, you might hurt yourself the next day if suddenly something goes very wrong. Your business income will fluctuate and no week will be the same. Over time you are able to see a pattern and are able to find some sort of an average income that will allow you to define your base salary. This base salary will (in most cases) be a safe amount of money you can pull out of the business without putting it at risk. However it takes some time to get there and makes it hard in the beginning. A good rule of thumb is to only pull out money that you need to pay for your basic needs. If you are used to have $650 of spending money every month after paying for your cost of living, that might be money you do not want to pull out of the business. First of all you might not even have time to spend it anyway and second that might be money your business needs to survive.
3) Forget about paid sick time off or paid vacation
As an employee you are most likely eligible for paid sick time and for some paid time off (vacation). Your employer plans for those expenses (it’s an expense/cost for a business). It’s a hidden expense to the normal employee. You do not have that when you are your own boss. You pay for it out of your own pocket. It affects your business profits. An important question is: does your business make money while you are out sick at all? Who generates revenue while you are on your trip to the Grand Canyon? Depending on your business model you need a live person to keep your business running or the days off that you need to take can have a dramatic impact on your business.
4) “My friends at work” – A thing from the past
Once you are the boss and eventually hire people, there will be no more friends at work. Even if you build up a relationship that eventually turns into friendship, there will always be the boss/employee thing between you. Unless you have partners in the company that’s how things will work. So, say good-bye to water cooler talking and gossiping about your manager ….. !
Are you ready to work for yourself?