As a person who has worked for many decades in a traditional office, and now works a business from home, I can definitely point out the differences of each. Sure, it’s exciting to think about how you will create a good income, not have to fight the road rage crowd as you speed down the freeway, and not have to deal with your boss chewing you out before you even start work. You can be successful working for yourself, but there are some things you’ll need to take into consideration.
You Won’t Have a Steady Paycheck
At the end of the day, you put up with nosy co-workers, irate customers, and stressful deadlines; because you know there is a steady paycheck coming. You may be paid weekly, bi-weekly, or monthly, but you always have a good idea of the amount you will receive.
As an alternative to giving up your job to start your business, it may be wise to hang onto your job until you begin to create a good income. I know it’s exciting to think about “firing your boss,” but you don’t want to end up with your neck in a noose, when you can’t pay your bills. When it is time to say adios, leave on good terms, because you never know when you may need to come back, or use your boss as a reference.
No Health Insurance Benefits
It seems like sometimes when you have health insurance, you stay healthy, and doctor visits may be limited to the good old annual physical. The minute your coverage ceases, Johnny falls out of a tree and breaks his arm, or Susie splits her lip on the swing set, and an emergency room visit is necessary to stitch it up.
Ideally, you may have a spouse that gets insurance through his or her job, or if you can afford the hefty premiums, you can sign up for COBRA for a certain length of time. If these two options don’t work, you need to save some money in advance to take care of these unexpected health emergencies.
Your Taxes Are Up to You
It’s very convenient to get the office paycheck, with taxes, Social Security, and FICA already taken out, but when you are your own boss, you still have to pay those taxes, and you may end up owing money at the end of the year instead of getting that hefty refund. You do have the option of paying quarterly, so you won’t be shocked out of your shoes when the tax bill arrives in the mail.
I hope I’ve given you some food for thought, and if you are serious about starting your own business, don’t be afraid to get out there, and start promoting it. With some hard work, patience, and some advance planning, there’s no reason you cannot realize your dreams.