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The Pros and Cons of Being Your Own Boss
One common half-truth of startups and entrepreneurship is being your own boss.
But there are both positives and negatives with being your own boss.
I’ve spent many years theoretically "being my own boss," as a business planning consultant and as a founder and owner of a company.
Working to "be my own boss" was never really my main motivation.
I started consulting on my own because I wanted to do the work, not supervise others. And I built a software company because I believed the product was needed.
The "own boss factor" was something that simply came along with it.
Before I get started, a quick note on one of my favorite start-your-business books, Melinda Emerson’s "Become Your Own Boss," recently updated with a new version.
I’ve known Melinda for years and watched her earn her excellent reputation through hard work, common sense, and telling the truth.
Honestly, I’ve never been a fan of the title of her book because of the ambiguity of being one’s own boss (and I’ve told her that).
But this is one of the top books on going out on your own, and I highly recommend it. Along with Pamela Slim’s "Escape From Cubicle Nation," it’s one of the two best books on the subject.
I also taught a piece of a longer presentation, embedded here, about being your own boss. It’s an excerpt from my video Startups and Entrepreneurship: Beyond the Clichés. I’ve left that one at the bottom of this article, in case you’re interested.
Pros of Being Your Own Boss
1. You’re in control. You make the decisions.
There’s great satisfaction in acting on hunches, making guesses, and taking risks.
Owning the job leads to job satisfaction, and when you’re the boss, you own it. Not having to ask anybody can mean a great deal.
2. You have flexibility in your schedule.
You can work according to your preferences. You can choose your hours and accommodate personal activities.
When you are your own boss, you focus on your output, not your hours (unless you have clients).
3. You can create your own work environment.
You decide on your work style, workplace environment, and equipment to the extent that you can afford it.
From upgrading technology to choosing a comfortable workspace, it’s all up to you.
4. You can choose your location.
You have the freedom to work from anywhere you desire.
Cons of Being Your Own Boss
1. Your customers and clients have control over your work.
As a business owner, your clients dictate your priorities and deadlines.
The health of your business depends on meeting their needs and expectations.
2. You are accountable for your commitments.
Keeping your promises is crucial to running a successful business.
3. Your employees look up to you as their leader.
You must lead by example and set the tone for your company culture.
Your behavior influences your employees’ work ethic and dedication.
4. You bear the financial burden.
You have to cover the costs of equipment, technology upgrades, and other business expenses.
During tough times, you must consider if you can afford necessary investments.
5. Your income is dependent on your business success.
There is no fixed salary or compensation plan as a sole proprietor, startup founder, or small business owner.
Your earnings depend on your business performance, clients, market conditions, and the value you offer.
Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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