For many people, successful entrepreneurship means absolute freedom and autonomy to call the shots. As liberating as this may be, there is so much more to being an entrepreneur than being the one behind the company's steering wheel.
In this article, we will unveil the good, bad, and ugly about entrepreneurship so you can decide if this lifestyle is right for you. Read on to learn the pros and cons of being an entrepreneur.
Pros of Being an Entrepreneur
If you're asking questions like, “What are the benefits of being your own boss?” you will need to know how entrepreneurship works. Some advantages include:
1. Almost Unlimited Freedom and Flexibility
As an entrepreneur, you’re the driver, the captain of your ship. You decide the when, how, and where to work. You no longer need to report to work at a certain time or to a manager. Work runs on your schedule, and you can work when you feel the most refreshed. Plus, you now have unlimited freedom to bring all your ideas to life.
2. Total Control of the Business
Again, this is your show, so you call the shots! It’s your business, and you can be your own boss, deciding the kinds of employees you want to hire and what the company culture will be. Everything is under your control, and your vision for the business will guide its direction.
3. You Make Money for Yourself
The goal of every business is to make enough profit to cover its overhead costs. As an entrepreneur, all the profits—or at least most of them—belong to you.
This is different from when you work under or for someone else and have to report all profits and are basically making money for them. Here, all the gains go to you, and with smart business management, these profits can provide your business the financial security it needs for long-term growth.
4. Impacting Your Local Community
Yes, a business is for making money, but its purpose goes far beyond that. For many startups and fintechs, another reason for being in business is to make a difference.
As an entrepreneur, your business can create job opportunities in your local community, understand people's pain points, and produce innovative solutions to improve their lives. So, if you understand how to be your own boss, you can positively contribute to society.
Cons of Being an Entrepreneur
We have looked at some of the pros and cons of being your own boss, especially the good side. Now, to the not-so-glamorous parts:
1. More Responsibilities
As the saying goes, with great power comes great responsibility. As an entrepreneur, you are forced to become a jack of all trades. You may see yourself handling everything from finances to marketing, especially if you are still in the early stages and cannot afford to hire staff.
2. Taking Financial Risks
Here’s another common saying: “You have to spend money to make money.” Starting and running a business comes with financial risks. This is often the first thing anyone will tell you if you ask them how to be your own boss. You may see yourself dipping into your savings or taking out large loans to keep the business afloat.
Yet, there is no guarantee of success with these risks. We can only advise that you start small and manage your finances properly to mitigate your risks.
3. Longer Hours and Added Stress
You will probably hear all the glamorous stories about being your own boss—what you might not hear as much is that getting these results will require you to put in more hours.
Entrepreneurship demands more sacrifices, both financial and personal. But if you stay motivated and focus on your future goals, you can make the most of it so the good outweighs the bad.
4. Fierce Competition
As a new business owner, you are most likely entering an already established market or industry. If you didn’t know this before, hear it now: competition is vicious in the business world.
Competing with established players will require you to understand consumer needs and innovate around them. Offering value is one of the unique selling points that will give you an edge in such a market. This is often easier said than done and requires out-of-the-box thinking that is often only achieved with more heads than just your own.
Bosses Are Better Together
What is an entrepreneur if not a boss in their own right? Like everything else in life, this seeming freedom comes with its share of obstacles and pitfalls, which we discussed above. However, it's important to note that you don't have to navigate this journey alone.
If you’re ready to take the first step toward unlocking your future potential as an entrepreneur, we know a good place you can start: EO Boston. A supportive community like this can grant you access to networking opportunities and mentorship. This way, you can easily avoid the mistakes other successful owners made. Join EO Boston today!