Are You Ready to be Your Own Boss?

Do you plan to give up your job and start a new business of your own? What would that take? What would be your new responsibilities? Probably more than you planned. In new business, your security is the biggest thing you give up. The idea of having a paycheck in the same amount you can count on every week is gone. The benefits you get now, your insurance, or whatever it is that you count on is gone. When you work for someone else you have set responsibilities, when you work for yourself, you are responsible for everything. Scary huh?

Failure? The myth that nine out of ten businesses close in their first year may or may not be completely true. According to more recent Dun and Bradstreet data, 76 percent of new companies were still in business after two years, 47 percent after four years, and 38 percent after six years. These estimates are substantially different than what is still commonly believed.

These business survival statistics are based on the number of new business licenses applied for each year, which are not renewed on following years. The licenses could be for a person selling crafts at the swap meet on Saturdays, or someone in a temporary business, or just as a tax shelter. Some of these “failed” businesses could have been sold or transferred to another individual. These estimates are hard to prove either way, but realistically, most new business does fail.

Statistically, more men are self-employed than are women. Women may be selling themselves short in the business world. Although times have changed, society has taught us in the past that men are leaders. All of our past presidents have been men. Women need to realize that starting a business requires attention to detail, devotion, commitment, and nurturing, all of which are natural characteristics of themselves. Women make great entrepreneurs, but the business failure rate is equally sexed.

Studies show businesses that do survive longer had more cash up front to invest. Other survival factors include the owner‘s age, higher education, and previous experience in their field.
According to a 2002 United States Census report, most business owners are between the ages of thirty-five and sixty-four and have had ten to nineteen years of work experience prior to self-employment. More experience in life and business seem to translate into more competent decision-making. How much “life” experience do you have?

Ask yourself these other questions as well, and be honest with yourself--it doesn’t help your chances for success to lie! How do you keep your own personal finances? Do you balance your checkbook regularly? Do you have credit card debt? Loans? How you manage your personal finances is a good sign of how you will manage your business finances.

It’s easier to be successful if you’re motivated to work for someone else--there’s that guaranteed paycheck every week. Working for a paycheck usually means there will be someone to give you direction and instructions on how to complete a job; someone who sticks their boot in your ass to get you going. But when you require your own boot, in your own ass, it’s harder to get that “kick.”

If you think you’re ready to be your own boss, do your research and by all means, don’t “mortgage the farm.” Make sure your personal ducks are all in a row and you won’t be jeopardizing your future or the future of your family.