Pros and Cons of Starting Your Own Business
We’ve talked previously about working as a freelancer. Starting your own business has a lot in common with freelancing although there are some differences. Both employment scenarios put you more in control—more in control of your income, of your activities, and perhaps most importantly, more in control of your day-to-day work environment and routine (within reason).
But just as with freelancing, all that control that comes with owning the business also comes with additional responsibilities and chores that people who punch a time clock at a regular job never have to deal with.
One good thing about having your own business…you always get the job! There is no need for resumes, interviews, and the like.
However, there is much more to it than that, so let’s explore the pros and cons of running your own business.
One more thing to keep in mind before we get started. Depending on you and your specific neuro divergence(s), what others see as a con might be a pro to you and vice versa. Likewise, the categories below can be fluid.
PROS of Starting Your Own Business:
Fun: Choose correctly, and you will get to work at something that matches your talents and interests.
In theory, more freedom: IF you choose the right business for the amount of time and hours you want to work, you can give yourself more freedom. However, as there are other responsibilities too, running a business can become a time sucker, so consider this carefully when choosing a business to start.
Self accommodations: If you choose a business in line with your interests, talents, and neuro divergence, you will be able, within reason, to make your own workplace accommodations.
Pursue your interests: For the best chance of success, you should choose a business that is a match your interests. If you get creative, almost anything can be a business. Check out the archives at the Side Hustle Show for inspiration.
Self-accommodations: Again, choose a business where you are free to create the workplace accommodations you need to be most comfortable and productive, and this traditional employment problem disappears.
Tax benefits: When you run your own business, no deductions are taken from your paychecks, and you are responsible for paying your own state and federal income taxes, along with other business taxes and fees that vary depending on the business. On the plus side, you can also take deductions to offset your income, so you could end up paying little to no taxes. Consult a tax professional for advice on your individual business and situation.
Loans, consulting, mentoring: Depending on your circumstances and location, you might qualify for small business loans and free or low-cost mentoring.
Legacy: A business that is an income producing asset will not only not earn you a respectable income throughout your life, it can become a valuable asset that can either be sold or passed on to your heirs.
CONS of Running Your Own Business:
You are always looking for work: Rarely will a single client meet all your financial needs, and even if they could, putting all your financial eggs in one basket usually does not make sense. You will always have to be looking for new clients or customers. Depending on your chosen field, this may or may not present any problems.
Fluctuating income: You cannot always count on having the same income, as this will be dependent on the overall success of your business. EspecialIncome can be sparse, especially when you are starting and building a business. Also, things can and do change, so you can never 100% count on the income you make this month being the same next month. It might be less, or it could be more.
Unstructured work/life balance: Depending on you, this may be a pro or con. However, if you like a lot of structure, some businesses might prove challenging.
No insurance benefits: You are When you own your own business, you are responsible for your own healthcare. If you have employees, you might even be responsible for all or part of their insurance too.
You are responsible for your own retirement. When you are self-employed, nobody deducts anything from your pay for retirement, nor does anyone contribute to your retirement fund. Aside from social security, which will be minimal, it is all up to you.
Liability: If you screw up and cause damage to property or harm to another person in the course of your work, you could financially and legally be on the hook for it.
As we said, these pros and cons of entrepreneurship are most definitely subjective and will depend on the individual. You must weigh the pros and cons regarding your business or freelancing path and your neurodivergence. No business or job is ever perfect. Likewise, is it a good idea to rank the negatives into what you can and cannot tolerate and proceed, or not, accordingly.
Is entrepreneurship for you?
Are you curious if starting a business is right for you? If you haven’t already, take the free ND Works Entrepreneurship Assessment. This short assessment will reveal if entrepreneurship might (or might not) be the right path for you. Take the assessment here.