If you are going to work for yourself, I will say that early on it is going to be more work and less pay, than probably getting a job. If you get a job, you get paid an hourly wage or salary, you may get overtime, double time, paid holidays, company vehicle, paid vacations, etc. Remember, if you are going to give up your day job or career and enter into your own business, you are giving up all of the above.
Before starting any type of business, you will need to look into the legal side of things. Especially if you are dealing with high-end items like real estate.
If you take on employees, you are going to have to pay all of the above. So it is important to ask yourself these few questions before starting your own home based business or working for yourself:
• Am I happy with what I am currently doing?
• Am I self motivated or do I need to be told what to do? If you are not self motivated, you have no chance.
• Do I crave social interaction with co-workers? If yes, you might consider network marketing, or real estate, as your vehicle.
• Do I have at least 6 to 12 months of income set aside to pay my bills while I set up?
• Do I have a supportive spouse; financially and emotionally?
• Do I have previous experience in the field in which I plan to build a business?
• Does my business require further education or certification?
These are just a few of the many questions you need to ponder, before going into business for yourself. Now I have given you all of the negatives of working for yourself, let us talk about the positives: As a business owner you will have the freedom to work when and how you want; You may work more hours than an employee, but if you want to go watch your kid’s soccer game, you can. If you want to take a vacation with the family, you don’t need to ask your boss for time off. Owning a business is similar to owning a home; when you work for someone else you are trading time for money or renting. When you own a business you may not be getting paid by the hour, but you are building equity – ownership. If you walk away from your job; chances are you are walking away with nothing, or a small bit of severance, but a business can pay you for a lifetime. In some businesses, you can build it to pay not just for yourself, but for future generations. You can build the business up and then sell it for a profit; You can build a business up and sell it as an IPO (Initial Public Offering)
As an employee you are always vulnerable to layoffs, downsizing, and competition; As an employee you are probably paying a ton of your income in taxes. This is why when someone tells me they are making 100,000 a year and they are an employee, I don’t think of them as being all that wealthy. Most business owners can avoid the high taxes, and enjoy the benefits of all the many write-offs to which they will have access.