5 Disadvantages of Working for Yourself
Whether you've always wanted to own a business or you can't find a good job at the moment, working for yourself has some advantages. You won't have to answer to anyone, you reap all the rewards of your effort and you set your own hours.
However, some drawbacks to being a business owner also exist. It's wise to understand the disadvantages of working alone before you make a commitment or spend any money.
Fluctuating Income Level
Having a job with a stable company means earning a regular paycheck. When you work for yourself, there are no guarantees you'll make a profit and pull an income from your efforts. Some months can be lucrative, and others can find you in the red. In addition to irregular pay, you'll need to buy your own health benefits.
Forbes also mentions the pressure to make a profit quickly and reinvest in the company. When sales are down, a small business with limited assets struggles to survive on a shoestring budget.
On the other hand, the disadvantages of working in a team include dealing with unmotivated team members who don't carry their fair share of the load. As an entrepreneur, you have more control of your earning income potential, suggests NOLO. The advantages of working with one person is that there is no cap on how much you can make and you're not judged on the performance of your team.
Long, Irregular Hours
Some employers offer regular start and end times so you can plan your evening and spend time with your family. When you work for yourself, you may be too busy to keep normal business hours.
Because you must perform all of the duties related to your enterprise, you may not have time for lunches or breaks. To build your business, you might need to respond to phone calls, texts and emails from customers or vendors at all hours of the day and night.
No Vacation Coverage
If you don't have employees, you can't rely on others to keep your business afloat when you're gone. Even with a trustworthy backup, you can be anxious about leaving for a vacation because you might lose business while you're away.
When you work for yourself, you may skip some vacations until your business is established. You can also opt for a working vacation and keep in touch with customers from a distance to ensure the smooth operation and continued momentum of your company.
Constant Marketing Efforts
As a small-business owner, you constantly need to market. If you are comfortable with the number and type of customers you have, you may not be motivated to advertise your business. Clients can be fickle, and if you lose some, you won't have others to replace the income if you're not actively looking for more. You must be willing to market your company constantly, even when sales and profit are high. This can be difficult if you are the only one working at your business and you have other obligations. Your income relies on your efforts alone, not the marketing department of an large employer.
Distracting Work Environment
If you work from home with no employees, you may need to adjust to your environment, cautions the University of Maine. You can become lonely without co-workers who stop by and chat or take you to lunch. You might be distracted by interruptions, such as barking dogs, small children and ringing doorbells. If you lack motivation, it can be hard to stay focused on projects without being accountable to a supervisor. Learning how to manage your time and serve your customers without external influence is a process many entrepreneurs experience.