Before You Walk Away From You Job

Nearly half of the world’s richest people are entrepreneurs, making opening a small business the number one way to get rich and sometimes very rich. Thus, owning one or more businesses that are money spinning is the aspiration of most people in particular when the finicky job that are available are dwindling on a daily bases. The contest for these available few is uptight.

Notwithstanding the situation, as good as being referred to as the ‘Chief Executive Officer’ or ‘Managing Director’ may seem, one need to re-evaluate the thought before leaping into it. Normally, when we think of starting a business what usually come to mind include more money than normally possible as employee, the thought of extra stream of income and extra profit if the business is sold off later can make the blood to run. What motivates others to go into business is the freedom from another master; they dislike the thought of having someone monitoring, supervising and bossing them around. They just do not like interference in their day-to-day decision. They do not want anyone to have power to ‘fire’ them. They have the sense of independence simply put.

They usually have control over long term of their work direction cum opportunity for flexibility in their business policies. Some are in it for the favorable tax treatment, since more allowance against income will reduce the effect of tax on their earnings. The last set of people comes into business because of some government specific incentives. Self esteem and self-actualization is what some people cherished most and no price can be place on it for them. In short, we all like the idea of authorizing our own salary increases, making your own work hours, and choosing the people for who you will work. It is all about more flexible lifestyle and greater freedom.

If these are your view about starting your business then you might need to know that if your startup business fails or liquidate, you might be exposing yourself to more risk than what unemployment or underemployment could ever bring. Have you also considered the simple fact that no one is really his or her own boss? An entrepreneur must answer to many people, including customers, investors, banker, government workers, supplier, employees and other professional experts and organizations. More so, there are no successfully startup businesses that open for short hours, someone has to work extra hours and that person in most cases is the entrepreneur.

New business involves considerable pressure, long hours of work and a great lot of stress. You also need to think and work in other to be able to with meet up with your employees’ payroll weekly or monthly. With great power, they say, come with great responsibility. As entrepreneur, you will be responsible for any final decision you arrive at and their consequences; both negative and positive. You need cash flow to be able to meet your obligations to your creditors such as suppliers, landlords/mortgage holder, insurance companies, and tax agency among others. Whenever there arise adverse conditions such as depressed economic or bitter competition you will be the one that will have to withstand it head-on. Aside from the creditors and customers, you will have to deal with a lot other group like the fire authorities, health authorities; insurance people that will make sure that standards and regulations are met. Wage and hour of work regulation will affect your work, so think about that too. You have to consider many days of loneliness and financial insecurity and the possibility of business failure.

As an entrepreneur, you are the most important employee of your company. Hence, you must be able to access your strong points against your weak points. You must be able to ascertain from the beginning your weakness and work on it. If you know you cannot be referred to as a great salesperson, you have two options; firstly, you can learn and secondly, you could employ an experience or talented marketer. Just capitalized on your strong side for effective performances.

You must note that no startups or even big businesses are too big or small to be immune to failure. The era of too big to fail companies ended with the collapse of Lehman Brothers and others during 2008 financial crisis. Successful startup entrepreneurs have developed culture and principles that reflect unique attitude towards failure. They have repeatedly tried to use the experience they gained from the failed venture in the subsequent businesses that might or might not fail. Israel have a culture that usually tries to repeatedly handle the return failed entrepreneurs back into the system to constructively use their experience to try again, rather than leave them permanently stigmatized and marginalized and it has work effectively for their economy.

You must now weigh the benefits against the challenges and think about how you will handle the circumstances. Another thing is that you should also weight the rate of return on your investment against the rate of return on your investment of your money or rate of return from your employment.