4 answers
Raven
Student
Elk River, Minnesota
5
Questions
Asked
581 views
What are the ups and down of owning a business?
I was wondering because I want most of my degrees and skills to overlap in some way. I want a degree in business management so it would be nice to know what all is in the process of owning a business.
Login to comment
4 answers
Jaime Perez
Change Management
4
Answers
Downingtown, Pennsylvania
Updated
Jaime’s Answer
I've owned my own photography business as a side hustle for over a decade. There are definitely pros and cons.
I've always had a main full-time job that has provided my health insurance, a retirement plan, and job security/safety net. If I wanted to go out on my own, I would have to figure out how to provide those things for myself.
I obtain most of my business through word of mouth. I do not advertise heavily or attend bridal/trade shows. I have a website and social media, but that's it. Think about how you would advertise and secure a regular client-base. Is there a way to keep customers coming back to you or would your business be a one and done type of service?
Since most of my clients have full-time jobs, the majority of my shoots take place during evenings and weekends, especially during spring, summer, and fall when it is nicer outside so definitely take into consideration when your industry/business's busy season would be. Would you have to give up evenings, weekends, and/or holidays?
Taxes! Many small business owners have to pay quarterly taxes or figure out how to estimate taxes on their own since money is not coming out of a regular paycheck provided by an employer. In my experience, this is not something you want to mess around with and end up being penalized for. Seek the advice of an accountant on how to structure your estimates/payments.
I've always had a main full-time job that has provided my health insurance, a retirement plan, and job security/safety net. If I wanted to go out on my own, I would have to figure out how to provide those things for myself.
I obtain most of my business through word of mouth. I do not advertise heavily or attend bridal/trade shows. I have a website and social media, but that's it. Think about how you would advertise and secure a regular client-base. Is there a way to keep customers coming back to you or would your business be a one and done type of service?
Since most of my clients have full-time jobs, the majority of my shoots take place during evenings and weekends, especially during spring, summer, and fall when it is nicer outside so definitely take into consideration when your industry/business's busy season would be. Would you have to give up evenings, weekends, and/or holidays?
Taxes! Many small business owners have to pay quarterly taxes or figure out how to estimate taxes on their own since money is not coming out of a regular paycheck provided by an employer. In my experience, this is not something you want to mess around with and end up being penalized for. Seek the advice of an accountant on how to structure your estimates/payments.
Thank you so much!
Raven
Waqar Sabir
Talent Acquisition
2
Answers
Oxford, England, United Kingdom
Updated
Waqar’s Answer
Great question. There are lots of differences between owning/running your own business as opposed to working as an employee. I have done both for many years and my feelings are as follows:
Pro's:
In a word Freedom, in both Financial, Style, Ownership and Time-wise to build a business around you
To be an entrepreneur, bringing your own plan/vision to fruition, is a great sense of achievement, knowing you created and ran this
Cons:
- Unstinting commitment - business owners are constantly thinking about their business and never truly 'switch off', which doesn't suit all; this can mean less holidays than a full-time employee could enjoy, and can lead to more pressure without the security of a monthly pay-check
- Increased Administration - additional requirements to do/prepare your own taxes/hire an accountant and look for assistance with legal, compliance aspects of business (for example Health & Security documentation)
A business that works can be extremely rewarding and most successful entrepreneurs never return to full-time work, and often reach levels you're unlikely to enjoy outside being in the top 1% of employees
Pro's:
In a word Freedom, in both Financial, Style, Ownership and Time-wise to build a business around you
To be an entrepreneur, bringing your own plan/vision to fruition, is a great sense of achievement, knowing you created and ran this
Cons:
- Unstinting commitment - business owners are constantly thinking about their business and never truly 'switch off', which doesn't suit all; this can mean less holidays than a full-time employee could enjoy, and can lead to more pressure without the security of a monthly pay-check
- Increased Administration - additional requirements to do/prepare your own taxes/hire an accountant and look for assistance with legal, compliance aspects of business (for example Health & Security documentation)
A business that works can be extremely rewarding and most successful entrepreneurs never return to full-time work, and often reach levels you're unlikely to enjoy outside being in the top 1% of employees
Thank you for the advice I am sure I will be able to incorporate your advice into my business if it takes off!
Raven
Howard Christiansen
Professor
54
Answers
New York, New York
Updated
Howard’s Answer
Hi Raven,
This is a very good question. I believe the pros of owning your own business include the personal motivation you gain from doing something completely on your own. This definitely is a plus for an entrepreneur. I also believe that you can reap tremendous financial gains for your pocket and also enjoy the independence that comes with working on your own to be successful. With that being said, there are some risks associated with becoming an entrepreneur, especially as it pertains to loss of your investment in the business should it fail or not turn out to be as productive as you envisioned. It takes a great deal of time and effort (long days, working weekends, etc.) to be an entrepreneur and also the work can often be quite stressful.
Raven if you think you want to be an entrepreneur, I strongly suggest you attend a college and major in Management and Entrepreneurship. I also suggest that after you attain your degree, you work for a few years for an entrepreneurial business and learn the "tricks of the trade." This will give you the necessary experience to become an entrepreneur or perhaps after the degree and experience, you may decide to choose another avenue.
I hope my recommendations have helped and sincerely wish you the best in all future endeavors.
Respectfully,
Professor Christiansen
This is a very good question. I believe the pros of owning your own business include the personal motivation you gain from doing something completely on your own. This definitely is a plus for an entrepreneur. I also believe that you can reap tremendous financial gains for your pocket and also enjoy the independence that comes with working on your own to be successful. With that being said, there are some risks associated with becoming an entrepreneur, especially as it pertains to loss of your investment in the business should it fail or not turn out to be as productive as you envisioned. It takes a great deal of time and effort (long days, working weekends, etc.) to be an entrepreneur and also the work can often be quite stressful.
Raven if you think you want to be an entrepreneur, I strongly suggest you attend a college and major in Management and Entrepreneurship. I also suggest that after you attain your degree, you work for a few years for an entrepreneurial business and learn the "tricks of the trade." This will give you the necessary experience to become an entrepreneur or perhaps after the degree and experience, you may decide to choose another avenue.
I hope my recommendations have helped and sincerely wish you the best in all future endeavors.
Respectfully,
Professor Christiansen
John Husband
Computer Science, Real Estate, Life
47
Answers
Boca Raton
Updated
John’s Answer
Hi Raven,
Sounds like you are considering a career as an entrepreneur. That's great. Hopefully "Rich Dad Poor Dad" is on your bookshelf. Also check this free game out: https://www.richdad.com/classic
Ups and down. Well besides marriage and raising children, I can't think of much harder and also more rewarding to do than start a business. The hardest part is getting the business off the ground. You need an idea that makes you enough money to be able to live yourself and take care of your customers and grow the business. It's complex and creative and challenging. Suggest you get a business degree in entrepreneurialship in college. Then get a sales job after college to learn how to sell (a critical business skill.)
If you are successful as a business owner, you will have more free time and money than the average person. You'll be able to help your community out in ways that most people wouldn't be able to. Happy customers are a joy to work with. Unhappy customers are a downer.
Hope this helps!
-John
Go to college for business
Get a job now, any job. Save 50% or more of everything you make to be able to invest in your business.
Start a "side hustle" business now
Get a job in sales. Save 50% or more of everything you make to be able to invest into your business
Find a need that isn't being filled that you are passionate about and fill it. Be happy about your company and it won't feel like work!
Sounds like you are considering a career as an entrepreneur. That's great. Hopefully "Rich Dad Poor Dad" is on your bookshelf. Also check this free game out: https://www.richdad.com/classic
Ups and down. Well besides marriage and raising children, I can't think of much harder and also more rewarding to do than start a business. The hardest part is getting the business off the ground. You need an idea that makes you enough money to be able to live yourself and take care of your customers and grow the business. It's complex and creative and challenging. Suggest you get a business degree in entrepreneurialship in college. Then get a sales job after college to learn how to sell (a critical business skill.)
If you are successful as a business owner, you will have more free time and money than the average person. You'll be able to help your community out in ways that most people wouldn't be able to. Happy customers are a joy to work with. Unhappy customers are a downer.
Hope this helps!
-John
John recommends the following next steps: