In the fall of 2012 I quit my job to become an entrepreneur. My first business was a blog about marriage and parenting that I ran with my wife. In terms of impact, it was a success (it is still being read by 100,000 people per year). In terms of being a profitable business, it was a failure. My second business was a marketing company. Thankfully, we’re in our third year of business and continue to be growing. Life as an entrepreneur has its ups and downs. It’s not for everyone. But more and more people are considering this route. A recent Forbes article estimates that by 2020, 50% of the workforce will be self-employed. For anyone that is considering becoming an entrepreneur, I hope this list of pros and cons will be helpful in your decision making process.
PRO: Greater Flexibility
I love the extra flexibility I have as an entrepreneur. It allows me to do the things I want to without having to ask permission from my boss. This includes things like:
– Taking an afternoon nap
– Dropping and picking up my daughter from preschool
– Hang out with an old friend who’s visiting from out-of-town on a weekday
– Having a playdate with my cousin and his daughter on a Friday afternoon
– Accompanying my daughter to her Kindergarten orientation at 1:30pm on a Wednesday
– Taking a mid-morning break to hang out with my wife
– Having a jamming session with my kids after lunch
– Being more productive by working when I have the most energy (sometimes this is in the morning and sometimes this is in the evening) and resting when I have the least energy
CON: Too Much Flexibility
Flexibility is both a good and bad thing. Too much flexibility sometimes means too many choices. Because I have the option to take an afternoon nap, I probably take more afternoon naps than I really need. It also means that my family or friends ask for my help more often, because they know that I have the flexibility. For example, my parents asked me to drive them to the airport on a Tuesday morning (which I was happy to do), but they did not ask my brother-in-law who is a teacher because they knew he teaches from 9-4 and is not available. Having flexibility means that I need to be mindful about how my time is spent.
PRO: Control to Make More Money (Salary is Directly Related to Effort)
One of the things I enjoy about being an entrepreneur is that the amount of money I make is directly related to how productive I am and how much value I can add to my customers. This is a great motivator. I see the direct impact of my work.
CON: Less Income (Especially in the First Few Years)
It takes time to build a business. Of all the entrepreneurs that I’ve worked with, the hardest thing in the beginning is getting customers. You’re new and no one really knows what you do. That’s why many people start their business on the side while they are working full-time. Or they negotiate with a former employer to do contract work for them. When we started Coracle Marketing, we made less money than we would have if I worked full-time with another company. Every now and then I get tempted to get a “normal” job, because I could probably make 25-35% more money. But if you are strategic and add value to your customers, you will be able to grow your business and have the choice to make more money than if you had a regular job.
PRO: Freedom to Design Your Business to Pursue Your Passion, Live Out Your Calling, and Do Meaningful Work
When you have your own business you have the freedom to choose the type of work that you do and the type of customers that you work with. As you grow, you also get to hire your own team and select people you enjoy working with. I’ve written in the past about how having your business is a great way to be able to live out your calling. At Coracle Marketing I love working with small business owners and helping them design their business so they can do meaningful work. I love working with them to develop business and marketing strategies so that they can grow. These are things I’m passionate about and good at. I’m extremely grateful that I have a business that allows me to do work that I love and to live out my calling in life.
CON: Having to Do Everything (Like Administration and Sales)
The tough part of being an entrepreneur is that you have to do everything in the business. This includes networking, marketing, sales, writing proposals, closing deals, project management, invoicing, bookkeeping, taxes, and administration. Many of these things I have never done before in my previous jobs, so I’ve had to learn. And I’m not good at everything, so sometimes it’s frustrating. I don’t have a team to work with to be able to pass off the tasks that I’m not good at. Some business owners end up hiring people (i.e. a bookkeeper) to help in their business, but that ends up being an extra expense.
PRO: Being Your Own Boss
That speaks for itself. Entrepreneurs love being their own boss.
CON: Having the Responsibility of Being a Boss
If there’s a problem, it’s your problem. When I had a job and I had a problem I couldn’t solve (or didn’t want to solve), I went to my boss. Usually I could pass my problems to them to solve, because ultimately it was their business and they were responsible. When you’re an entrepreneur, every problem is your problem. For some of my customers who have larger teams, they spend much of their time and energy solving the problems of their employees.
PRO: Work is Exciting
Having your own business is exciting. It’s exciting for me to get a referral and to meet someone new. It’s exciting to get a new customer. It’s exciting to complete a project and be praised for the great work you and your team did. It’s extra exciting to get a cheque in the mail!!
CON: The Instability of Having Your Own Business
There are ups and down in business. Sometimes there isn’t enough work. Sometimes there is too much work. Having a business has been described as “feast or famine.”
PRO: You can Take as Much Vacation as You Want
You’re the boss. You can decide how much vacation you want to take (looking at the photo below makes me want to pack my bags and go right now.)
CON: Harder to Take Vacation (There’s No One to Cover for You)
The reality is that it’s actually harder to take vacation because there is no one to cover for you. When I was an employee in a company, my colleagues and boss did my work when I was on vacation. Since becoming an entrepreneur, I’ve found it more difficult to go on vacation. I have many customers relying on me and sometimes they have urgent requests. It’s hard to provide a high level of service to them if I’m away for 3 weeks. No matter how much I plan and get all the work done beforehand, something always seems to come up. What usually happens is that I check my email when I’m on vacation, and if there’s anything urgent, I end up working.
CON: Loneliness
It’s lonely being an entrepreneur. When you first start it’s just you. You spend the majority of your time working on your own. Sure you get to meet with clients and go to networking events, but that’s probably the minority of your workweek. The loneliness of being an entrepreneur is especially hard for extroverts who thrive working with others.
Entrepreneurship is not for everyone. It’s great for some, but not so great for others. The hard part is discerning if it is a lifestyle that you will thrive in or not.