People often associate being self-employed with freedom. Financial independence, a flexible work schedule and the luxury of not answering to a superior are common themes in the glamorized entrepreneurial fantasies of many workers. But how many entrepreneurs actually score perfect in the areas of flexible schedules, plenty of money and absolute power? When I look closely at the lives of people I admire, capitalists who I perceive as having “made it” in their respective industries, I observe that most are making a significant concession in at least one of those major categories.
A close friend of mine has a high profile tech start up. He took venture capital money to get it off the ground and has a board of directors over his shoulder monitoring and critiquing his every move. They may tolerate his exorbitant salary but he once described the board to me as the “worst boss he ever had”.
Several of the business people I know started small and built their businesses organically over time. I have two friends who run a staffing firm as principals of the company answering to no one. They also make a very decent living but they work 6 days a week and consistently over 60 hours.
I have another friend who opened a successful boutique. She determines when the store opens and closes, has competent employees capable of running the store so if she wants to leave town for a week for a trip to Spain she can. However, covering the monthly nut on retail space and payroll in New York City is a challenge even when sales are good. She made more money as a medical device sales rep.
And these are my examples of the people that made it.
Unquestionably, there are examples of people who make it look easy, who have it all and who don’t make concessions. More often than not, I have found those people are lucky as opposed to good. My friends and colleagues referenced above and countless others I know failed more times than they succeeded. Their path, even if successful ultimately, was defined by tough times, periods of uncertainty and tremendous personal sacrifice.
I’m an entrepreneur as well, so I should know. Many of my perspective clients are startups, and I help them get off the ground. Almost all of my perspective clients are gainfully employed. Countless times a prospect has described a new business idea to me that, on the surface, seems genius and simple, but as I help them flesh out the cost, timeline, labor and commitment their project will require, they become disappointed. Frequently a comment is made that provides insight into their true motivation for starting this business. They wanted an escape from their current reality. They wanted to never see that jerk boss again. They want to be able to play golf on a Tuesday afternoon if they feel like it. They want to buy the big house on the hill.
It appears many people who dream of having their own business someday are very unrealistic about what that entails. Somehow, they view being self-employed as a destination when it is actually just the beginning of a very long journey. Opening a business is not the easy way to make a fast buck. I can reference personal experience to validate that statement. I gave up having one boss for having dozens; I just call them customers now. My new hours; every hour I am interested in making money I am working.
My life didn’t become less stressful when I went out on my own. At several points I almost went under and came close to losing my nerve. I still haven’t made the money I could have made at this point in my life in a different profession; working for someone else. So why would I make these choices? The answer is because I enjoy what I do, because I am passionate about my business.
My big dream is to grow my business, become significant enough to show up on someone’s radar, get bought out and retire early in Latin America. My dream isn’t all about the ending. If my only interest was in the part where I retire to Latin America, there are easier and more expedient ways to go about that. I could find a firm with an office in Panama City right now, take the Rosetta Stone DVDs from under my bed, put them to use and be there in six months. I find the process to be rewarding and enlightening. I am most interested in the parts where I am navigating my way there.
There is a famous saying that you either live to work or work to live. If you go into business for yourself you had better live to work. Be self-employed because if affords you the opportunity to do something that you love. Do it, because you can’t imagine doing anything else. Start a business if you are interested in creating something of significance or because you want to provide opportunity for others.
If you think being self-employed will make you happy, solve your problems or increase your personal freedoms, you’re doing it for all the wrong reasons.
Perhaps even more apropos is one of my favorite quotes: The Dalai Lama, when asked what surprised him most about humanity, answered “Man. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.”
Want more info on deciding if starting a business is right for you? Here is a list of other great tools and articles on the topic:
- SmallBizTrends: Small Business Failure Rates – Most new businesses fail. What will be the impact on your life if your new business is not successful?
- MarleeWard: The Pro’s and Con’s of Self Employment – and a free quiz to help you determine if self employment is right for you.
- WSJ: How to Decide if Entrepreneurship is Right for You – 5 questions every aspiring entrepreneur should know the answer to before taking the leap.
- About: Starting a Business Quiz – Questions which will help you determine whether starting a business is the right path for you.
- Forbes: 11 Myths of Owning a Small Business – A lot of what you hear about starting a business is just plain wrong.
- Business Owners Toolkit: Do You Have the Right Stuff to Run a Business – An overview of the essential qualities for owners, how to compensate for weaknesses, and the impact of business on your personal life.
Dalai Lama really hits home with his quotations. ?
The crazy thing in this world is that in order to be successful, you have to be obsessed at what you do. You have to put your entire soul into it in order to excel at it.
I hate how it’s so trendy to be an entrepreneur nowadays. It makes the concept seem really vague now and how it’s portrayed that being one is the only thing that will set you free. Not to burst your bubble, but it’s not for everyone and that’s fine. It’s just like any other job in the world, it may or may not be good for you. People can be successful in their own ways and entrepreneurship isn’t the only way to go. You want to be your own boss? Cool. Ever thought about the struggle of constantly being innovative and growing? Or constantly worrying about the numbers because one small decision can cause all your dreams to come crashing down? ?
This is the reality!!!
Businesses are getting trickier and trickier nowadays. If you don’t stand out, you’ll get lost in the crowd of entrepreneurs who wants the same goal as you.? So you better take it up a notch.
I’ve done a good amount of research that includes a lot of people wanting to be their own boss just because they hate their previous bosses. While that can be a big factor, it’s just a little petty to not want to deal with another person’s crap.
Most of our dreams and goals are really unrealistic. That’s the harsh truth on why most people fail in their ventures.
Exactly. These people need more direction.
For any company or business can flourish in today’s corporate world, it’s almost mandatory that the company is being led by a good boss. He/she needs to be really competitive and competent enough to carry all the possible responsibilities well. Although a lot of people think that being your own boss is downright amazing, they don’t realize the responsibility it entails. It’s not just about having your own time and freedom, it’s about shouldering almost anything that the company needs.??
Some people toy with the idea of leaving their jobs to start their own business. Being self-employed has its own advantages and disadvantages. And before taking steps, It is wise to consider every aspect of being self-employed, and then decide if this life is right for you.
When you work for someone else, life is just comfortable enough to keep you from asking the really important question. Sure you feel like your soul is being crushed every day at work but at least you get a paycheck, right??
It’s more important to be happy than to be rich. If you want to do it for your happiness then go for it. Don’t do it for money.