Setting up a Business Includes:
How to set up your own business How to write a business plan Advantages & disadvantages of own business How to market your business How to set the right prices for products How to set the right contract / consultancy rates What is professional indemnity insurance
Setting up your own business has a real attraction for many people. Being your own boss, working when you want, and many more things. Before leaping into setting up your own business it is worth looking at the reality of it and making an informed decision.
Running your own business can be great fun, you can drive the business along as it is your passion and what you want to do. By understanding the positives and negatives of setting up your own business you can take a more realistic view, discover if it is for you and if it is you can be better aware of the pitfalls and major to the strengths of running it.
Obviously the advantages and disadvantages will depend upon the type of business that is being envisaged, but the points should provide an insight into some of the ups and downs in running your own business.
Disadvantages of setting up your own business
When we think about running our own business, often we only tend to look at the advantages, so we will start by looking at the downsides, and try to get a view of these before looking at the positives, of which there are very many.
Hopefully, looking at the downsides will put a more realistic view on this, it will be possible to look at the prospect more objectively and also counter some of the issues before they occur if you did decide to proceed.
Risk of business failure: There is a significant risk to startup up your own business. There is generally a much greater risk starting up your own business than working for a company that is already established. Not only can there be a risk to your job, but also any capital that has been invested. If there is a loan that has been taken out to fund the business, then this may use your personal possessions such as a house as the surety for it.
Occupies significant time: Anyone setting up their own business will be passionate about it. Often this then reflects into spending a lot of time on it. Care must be taken to put boundaries on the times for work, otherwise it can take over your whole life, especially if the office is at home.
Business can be 24/7 activity: As the business establishes itself, there is the danger that customers may call at any time and you may feel honour-bound to respond despite the time of day or night. It is very important to put boundaries up when the business starts, and then get into the habit of sticking with them. If not family and social life can be adversely impacted.
Business can take over the home: When many businesses start up, they are started from home. This is ideal in many ways because it eliminates the cost of other premises. In fact the recent Coronavirus outbreak has shown how much can be achieved from home. However the downside is that the business can take over the home and it is not easy to get away from it. If possible it is best to have a dedicated room or area that can be shut away after business hours so that normal / family life etc can continue without the temptation to just do the next bit.
Too much work: Yes, there are times when there is too much work. When setting up your own business, the fear is that there won't be enough work. This is a very real fear and one which often results in agreeing to every opportunity that arises. IN some cases this can lead to there being too much work to do.
This can lead to you being overloaded and stressed, it can lead to poor quality, and various other issues. These are not the aim of working for yourself.
Try to look at the longer term and not take on every item of work that is offered if it will lead to you being overloaded.
Advantages of setting up your own business
You can follow your passion: When you work for a company as an employee, you need to do as you are instructed. If you work for yourself, you can follow your passion and make your own decisions.
You can implement your own ideas: When you work for a company, you need to work under instruction. If you have your own business, you can follow your own ideas and there is normally not the same level of bureaucracy that there is in a larger company. Whist it is often worth sounding out other people, you can often implement your own ideas far more easily.
Possibility of working more flexibly: With great care, it is often possible to work more flexibly. If you set up the business and its mode of operation to meet your needs, then there is the possibility of more family time, taking summers off, etc. That said, this is not always possible, especially if you are running a company that provides a service.
Opportunity for greater financial returns: When you work for a large company, the salary structures are normally well defined. If you work for yourself, then the possible rewards can be much greater, although there is a considerable level of risk.
There are many advantages and disadvantages to running your own business. It is worth thinking these issues over, although with others. Speak to friends and colleagues who have runt heir own businesses and see what they think. They will be able to give you their views on the advantages and disadvantages of running your own business.
More about becoming an engineer:
Career planning Continuing professional development, CPD What is electronic engineering? Job application PI Insurance How to work from home How to set up your own business
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