Pros and Cons of Opening Up Your Own Business

[Adrenaline]

What are the pros and cons of opening up your own business?

I'll start:

Pros:
- You get to be your own boss
- You set your own hours
- You have unlimited earning potential
- You can take as many vacation days as you'd like

Cons:
- You have to work very long hours
- You may have to work 6 or 7 days a week
- Your income is variable
- You can lose A LOT of money if your business fails
- You have to do a lot of extra paperwork
- You get no benefits or pension
- Your business has to gross at least 100k/yr for you live above the poverty line

Feel free to add to the list.

 

[Cinema Face]

Cons:
Risky
Can't quit or walk away from it easily

 

[Rockslinger]

The best businesses are ones that require no financial capital or running costs. An example would be an outcall agency. All you need is a cellphone, TTC tickets and, oh yes, women.

Easy to startup and easy to winddown.

 

[toughb]

What are the pros and cons of opening up your own business?

I'll start:

Pros:
- You get to be your own boss - Your customers are your boss.
- You set your own hours
- You have unlimited earning potential
- You cannot take as many vacation days as you'd like

Cons:
- You have to work very long hours
- You will have to work 6 or 7 days a week
- Your income is variable
- You can lose A LOT of money if your business fails
- You have to do a lot of extra paperwork
- You get no benefits or pension
- Your business has to gross at least 100k/yr for you live above the poverty line. This depends on you profit margin and line of endeavor.

Feel free to add to the list.

***

I corrected part of your post. Hope you don't mind. I ran my own business for 15 years.

Only open a business in a field that you have years of previous experience in.

Do not open a franchise.

...

 

[to-guy69]

~10% of your clients will not pay you.

 

[kumamake]

if its going to be a one man operation and there lots of other companies offering same services as yours!!!!!

NO VACATIONS FOR YOU

 

[Brill]

A one person operation is the most flexible one, other people aren't depending on you. You can budget your own vacation and benefits if it's a successful business, you can tell a client to go elsewhere as well.
Just look at the most successful escorts, their portable skills and low overhead mean they can be freer and more independent than most people.
A good writer has the same situation, unless they have tied themselves to a demanding contract.

 

[21pro]

keep in mind that these suggested pros and cons aren't going to help you and shouldn't be the deciding factor in helping you decide whether to go into business or not.

for me, going into business for my self was a necessity. I played semi-pro hockey in Germany after jr. and needed income on flexible hours worked. Sure I had a condo and a vehicle supplied by the team, but I knew I wasn't NHL bound, but still loved the game and it brought me around the world. while in Germany I learned about robotic painting techniques from a neighbour in my building who's company was a major sponsor of our hockey league in Germany... I took on an 'interest' in working for him during my rest time away from the rink...

Anyways, I took some of the technology back to Canada and in 2000 set up a shop in Brampton working via contract for Magna painting some of there then 'locally' warehoused auto parts. It wasn't a clear path from hockey to auto paint that was taken... I dabbled in college, coached summer hockey, worked at a few hockey shops, etc... but, the business made the most sense to me. Once set up, in 1 year I developed a newer more advanced system for painting that is entirely robotic... got some patents and really started doing business when I was able to manufacture and sell my technology to other new car part plants around the world.

Sold the business a few years ago now and have been a 30 something retiree for the last few years entertaining a passion of mine in coaching hockey and trying to master it. Coaching so far does not pay well and may never... but, who knows???

I'm certain that I will be in business for myself again some day, but don't think I will ever hit a home run such as I did in my 20s...

I 100% agree with the pros and cons of being sole operator. I quickly erased myself from that position as I wanted paid-free-time, not to be consumed by my job. Plain and simple, it is much better to hire out for the best people to do each needed task that they do best and pay them well for it. My 3 managers all made over $160k/yr... I had an administrative team of 5. And about 20 technical workers. Myself, I enjoyed being an innovator and thinking creatively... I believe it is what I did best for the business... every other task I contracted out to people that did their own work better than any average worker.

If I would have tried to run this shop by myself, I'd be making 100k/yr, but 365 days a year nearly and would have never got any blue chip contracts that raised my yearly sales to well over 8 figures.

 

[Hanibal]

why would you need to work 6 or 7 days a week?
the whole point of opening a business is not to work, your a flat-out idiot if you work full time and own a business, hire some pimply kid and pay the bastard 10 bucks an hour

 

[drlove]

Your business has to gross at least 100k/yr for you live above the poverty line

Not necessarily. I'd say grossing $100 K+ is living well above the poverty line. For instance, take an escort agency: relatively little overhead, so much of the generated revenue flows to the bottom line.

 

[Rockslinger]

take an escort agency: relatively little overhead,

The biggest overhead for an outcall is probably lawyer fees.

 

[Rufus Doofus]

Great Topic; my review

An interesting topic I finally trust that I know something about. I'm still a long way from any retirement ;-) but have been able to be self-employed during two thirds of my life. I have studied small business in university and utilized the knowledge, hands-on. The following are my in-depth and hopefully astute points on small business. I currently own a very small corporation working in international trade which has been in operation for twelve years.

PROS
- there is no one I can't tell to go fuck themselves.
- I finally got some decent looking business cards printed.
- I am responsible for the quality of my work and my future is in my own hands.
- I'd rather be a Fucker and not a fuckee.

CONS
- given there are so many negative points including 60% failure in year 1 to 90% by year 3, the following statement in not made in seclusion from reality.
- if the first 4 positive points mean anything than there can not be any cons.
- money has no standing because as long as your physical needs are met however poorly, the benefit in independance and self-determination are far greater.

 

[WoodPeckr]

Start a Bank then become a Bankster

This way you can give yourself an obscene salary and bonus and if your Ponzie scheme crashes you get taxpayer monies to bail out your crooked arse out so you can again give yourself an obscene salary and bonus.
And best of all bottie and his frenchy pal will defend your greedy crooked avarice on this board....

 

[tboy]

The biggest overhead for an outcall is probably lawyer fees.

Why do you say that? Unless they are doing something really bad (like underage girls or whathaveyou) LE leaves them alone. Plus there is some vagaries in terms of what they can be charged WITH.

Remember: outcalls are 100% legal.

As for being self employed: yes, there are often times when you work on stat holidays etc. But the number one thing is: you're in charge of your own destiny. I worked corporate for YEARS and have nothing to show for all the overtime I put in, all the policies I helped develope, all the ruined relationships. (I was working on average 100 hrs a week).

If you can turn your primary residence into your place of business, so much the better.

Anyone who is trained in an area where you CAN operate independantly and doesn't is a fool (in my opinion)........

 

[Rockslinger]

Unless they are doing something really bad (like underage girls or whathaveyou) LE leaves them alone.

That is true now but one never knows what might happen in the future. I suspect that agencies are always in consultations with their lawyers.

 

[tboy]

That is true now but one never knows what might happen in the future. I suspect that agencies are always in consultations with their lawyers.

Well, they certainly aren't going to make living off the avails any MORE illegal. The only thing that could happen is they'd change the law to indicate that living off the avails is legal as long as the situation is voluntary.

But, like I said, LE is only interested in the pimps who prey on underage or coerced women. A booking agency with an agreement between two consenting adults is SO not their priority....

 

[Rockslinger]

Well, they certainly aren't going to make living off the avails any MORE illegal. ....

It is not even a question of the nature of the business. My boss runs a perfectly legal business and he spends a ton of money on legal advice because there are so many rules, regulations, bylaws, tax laws, immigration laws, etc. that it is so easy to be offside.

When he instituted the corporate "no hugging" policy, he got two legal opinions confirming that it is legal but not "without doubts". His concern was that trying to implement a "zero tolerance" sexual harassment policy the company might be violating an employee's Charter rights to hug another consensual adult even if another adult standing nearby finds it offensive.
It is not easy being a boss nowadays.

Remember when the TD Bank tried to implement a drug testing policy? Apparently, this violated the employees' Charter rights. No, you cannot compel your employees to pee into a test tube.

 

[Rockslinger]

If possible, try to operate your business as a LIMITED LIABILITY COMPANY. That way you won't risk your entire personal net worth if a customer comes into your shop and slips and breaks an ankle.

 

[tboy]

It is not even a question of the nature of the business. My boss runs a perfectly legal business and he spends a ton of money on legal advice because there are so many rules, regulations, bylaws, tax laws, immigration laws, etc. that it is so easy to be offside.

When he instituted the corporate "no hugging" policy, he got two legal opinions confirming that it is legal but not "without doubts". His concern was that trying to implement a "zero tolerance" sexual harassment policy the company might be violating an employee's Charter rights to hug another consensual adult even if another adult standing nearby finds it offensive.
It is not easy being a boss nowadays.

Remember when the TD Bank tried to implement a drug testing policy? Apparently, this violated the employees' Charter rights. No, you cannot compel your employees to pee into a test tube.

Yeah, there are those who worry about that sort of thing and those that don't. Now you HAVE to compare apples to oranges there Rock: we're talking about an independant agency owner with 2 maybe 3 staff members who take calls and book appointments. Most likely out of their own home......we're NOT talking about a multi billion dollar corporation with 100's of offices all over the world.......

I know a couple of agencies are just a person, a daytimer, and a phone. No worries about immigration, no worries about HR issues......

For eg: I'm self employed. I have NO employees. When I need extra help I hire a sub-contractor even if they are not per se.

 

[SkyRider]

Our local mom and pop photofinishing shop went bankrupt last year. Couldn't compete with the local Wal-Mart and digital cameras. The guy said he spent $300,000 on a Norbord (?) lab machine just a few years earlier.