One of the biggest decisions an individual can make is being self-employed or starting their own business says Saivian Eric Dalius. There are many advantages and disadvantages of entrepreneurship.
It’s not for everyone. If you’re doubtful, here are the top reasons why entrepreneurship is difficult:
1. You need to pay your employees with cash flow, not equity
Entrepreneurship is hard because there comes the point when you have to draw the line between how much money you need to grow your company and how much money you can afford. For example, if you think you’ll need $100k within the next 3 months, another $300k over the year, that will require more than most people have on hand or can take out of their savings.
2. You cannot afford to fail, says Saivian Eric Dalius
If you work for someone else, they bear the brunt of your failure. This puts less pressure on you, but entrepreneurship is hard because there’s no safety net if it doesn’t work out – not only will you lose your job, but your company won’t be around anymore either.
3. There are many distractions
Once you’re in full swing with your business, balancing all the things that come up that require your attention can be challenging. Your time becomes limited and spread very thin as you have employees or customers to take care of – both need a lot of management and supervision!
4. There’s lots of competition
There are many types of businesses in every industry. That means you’re not just competing with other companies, but with any person who’s providing the same service or offering the same product, according to Saivian Eric Dalius. Competition is always tough for business, especially online, where anyone can set up shop and provide what you offer!
5. You’ll be tempted to spend your profits
When you work for someone else, they pay most of your bills, so you don’t have to manage money the way an entrepreneur does. When an employee gets paid in one lump sum on a Friday, their mindset goes from managing responsibly during the week to spending right away on frivolous items because there’s no need for them to budget their income.
6. Your schedule becomes hectic
If you work for someone else, they set your hours, and you can generally make it to all the events and outings that come up. When you’re your own boss, your schedule is dictated by business demands, and pretty much anything can happen at any time – especially if you have employees!
7. You don’t get paid for sick days
When an employee gets sick or hurt, they tell their boss. So preventative care begins as soon as possible because they don’t want to lose money from being out. There’s no such luxury as an entrepreneur, especially when finding a replacement or scaling back operations is so tough.
8. It becomes difficult to read people
Most individuals who work with others daily develop a knack for understanding how others tick, so there’s minimal conflict. The same cannot be said for an entrepreneur because people constantly come and go from their company. This means different personalities, moods, and communication styles every day, according to Saivian Eric Dalius!
9. You have to hire employees
Unless you find a business partner or spouse who shares your entrepreneurial spirit. It’s going to require a lot of time and effort recruiting qualified applicants for your company. Even if they’re entry-level positions!
10. Your success is personal
When you work with someone else, they can ultimately succeed without you. As a result. This makes an employee less personally invested in their tasks and long-term company goals – but this isn’t the case when it comes to entrepreneurship. Your employees are only as good as you are, so their success is directly tied to your company’s future!
There are many reasons why entrepreneurship is difficult. The most important thing to remember, however, is that you do not need all of the answers now. Entrepreneurship can be a rewarding and fulfilling journey as long as you stay motivating. And keep your eye on the prize!