As hype increases about a so-called 'Great Resignation', with 3% of all employed in the US quitting their jobs in Novermber 2021. Entrepreneurship may seem like an attractive option for people who are tired of the traditional nine-to-five. In fact, a staggering 64% of the UK's workforce say that they want to start their own business. And it's easy to see why — seemingly everywhere you look online today, there are stories about successful entrepreneurs pursuing their passions.
The Positives of Entrepreneurship
1. Freedom Over Your Working Environment
You want to work from the comfort of your own home and are bored of donning corporate clothing every day to sit at a desk. Perhaps you simply work better in the evenings. There's a good chance that entrepreneurship is the ideal career path for you. For one in three Britons, flexible hours and the ability to work from any location are the most attractive aspects of becoming self-employed.
Aside from your clients, being your own boss means you won't have to answer to anyone else, which can also provide opportunities for people who don't fit into average office environments to use their skills in new and exciting ways. Entrepreneurship presents a great chance to create a business environment that works for you — for some it enables them to thrive, making it a more inclusive career choice.
2. Control Over Business Decisions
With the pandemic causing people to re-evaluate their priorities at work, an astronomical 41% of workers are considering quitting their jobs this year, which employers are dubbing 'the great resignation'. Ultimately, entrepreneurship offers people a greater sense of control and allows them to run their businesses outside the rigidity of conventional corporate practices.
The Pandemic acted as a magnifying glass on toxic workplace cultures that caused employee burnout and a worsened work-life balance. With people now questioning whether their employer supports their needs in and out the workplace, entrepreneurship is set to provide a chance for new business owners to break away from damaging behaviours and control how they operate.
Those that can set up companies with ethical working environments will also likely benefit from the great resignation, as other people flock to more attractive job prospects. 2022 could be the perfect time to put together a business plan and set off on your own.
3. Higher Earning Potential
Although entrepreneurs arguably take more risks with their income, the earning potential is much higher than if you were to continue slowly progressing up the ladder at another company. Glassdoor puts the average salary for an entrepreneur at £43,256 — nearly £12,000 above the national average — but the sky really is the limit.
After all, you control your own time, choose which clients to work with and decide how much to charge. Eventually, you may even take the leap and scale up your operations, giving you the ability to take on more work and increase your turnover significantly.
The Realities of Entrepreneurship
1. It's Risky
It's no secret that entrepreneurship is a risky business — quite literally. Unfortunately, around 660,000 start-ups are registered in the UK annually, but 20% of those won't survive beyond the first year.
Consequently, it's always a good idea to have a backup plan and some savings behind you before you set up your new company, as you may need to cover the expenses for a while. Writing a business plan will help you determine how much you need to make to turn over a profit and create forecasts for the future.
2. You Have to Take Full Responsibility
It may seem thrilling to be in complete control over your own business, but the novelty soon wears off once you inevitably have to start making difficult decisions. Perhaps you need to let someone go or stop working with a client because they're not a good fit — in that moment, all the responsibility lies with you.
For a quarter of all aspiring British entrepreneurs, the fear of stress brought on by such responsibilities is enough to put them off. Evidently, self-employment is not a suitable path for everyone, so you must ensure you're willing to handle those tough situations in return for more freedom.
3. You May Need to Make Sacrifices
Although you may be running for the hills from your current job because you're looking for a better work-life balance, it's important to note that entrepreneurship involves many sacrifices at first. Think about whether you're willing to give up your social life, free time and comfort zone to build the business you want.
Because start-ups can demand so much attention from their founders, around 7% of people choose to go into business with a partner as a way of sharing the workload and bringing in a variety of skill sets. So, if you're not sure if you want to jump in at the deep end alone, it could be worth getting someone else on-board with your idea.
Is now the time to make the leap?
Now that we've weighed up the pros and cons of entrepreneurship, you should have a greater understanding of the realities of setting up a business and, therefore, be in a better place to decide whether it's the right move for you.
Remember, being self-employed is high risk but can be highly lucrative in the long run if you've taken the time to create a strong business plan. Those willing to put in more work upfront will be more likely to succeed and can even offer better opportunities for other people who are currently unhappy at work.
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