There are lots of reasons in favor of going into business for yourself (be your own boss, work your own hours, etc). But there are also a variety of reasons why people don’t go into business for themselves. Some common obstacles are:
No Guaranteed Paycheck
While it´s true that a ‘regular job’ can offer a steady paycheck, this argument really has diminishing merit in today´s corporate world. Today we’re in a world of downsizing, re-organizing, mergers, acquisitions, at-will employment, offshore outsourcing, and corporate cost-cutting. Even though there might be a paycheck today, there may not be one next month.
High Probability of Failure
I read somewhere that 95% of businesses fail within the first two years. This is probably true in the big business picture, but I suspect this statistic has a lot do with ‘Brick & Mortar’ businesses. When setting up a business with a physical location there is tremendous overhead having to do with establishing and maintaining a premises, maintaining office and/or warehouse space, stocking inventory, hiring employees, office furnishings, and all the other costs that can add to the risk of financial failure. A Brick & Mortar business requires far larger amounts of monthly revenue to support itself than a home-based business does.
Costs Too Much
As mentioned above, businesses with physical locations to support have much higher costs. Startup costs for a home-based business vary widely, but to give you an idea: mine were around $1700. These were things like purchasing licenses, paying for design work, website setup costs, etc. My business has long since paid those back and this figure pales in comparison to what it costs to start a Brick & Mortar business. Show me a Brick & Mortar Business with this level of startup costs and I’ll buy it!
Don’t Have Time
You may think you’re too busy, but can time be made? How much time is spent watching TV per week? Can you work out a deal with your employer to get more time away (think contractor or three-quarter time). If you look hard enough, you’re bound to find places where time can be spent on a home-based business.
Don’t Have the Technical Know-How (Web-Based Business)
Most people assume that you must be some sort of geek to set up an eCommerce web site. This may have been true 10 years ago, but now there are “out-of-the-box” eCommerce solutions that require no knowledge of HTML, PHP, XML, Java, etc. Here are four such solutions that I know of:
No Medical/Dental Benefits
In most states, you can pay your own medical insurance premium. Granted this is a sizable cost, but if you currently have a job that provides these things, keep it until your business reaches a level of profitably that will pay these costs for you. Then it becomes a tax deduction!
There’s never been a better time for home-based businesses. Home-based business opportunities have grown exponentially and the web has made many things possible for many peeople. What are you waiting for?