POVLITZ Inc | Business and Entrepreneur

Many people start their business adventure dreaming of riches and freedom. And while both are certainly possible, the first thing to understand is that there are tradeoffs when you decide to start a business. Difficult bosses, annoying coworkers, peculiar policies, demands upon your time, and limits on how much money you can make are traded for independence, creativity, opportunity, and power. But by the same token, you also swap a regular paycheck and benefits for no paycheck and no benefits. A life of security, comfort, and regularity is traded for one of uncertainty. There are definitely pros and cons to starting your own business. To be more precise, the benefits of starting a business include:

But there are also downsides to starting your own business:

• Uncertainty. As indicated, the life of an entrepreneur is not necessarily an easy one. Is it fun? Yes. Is it challenging, exciting, and spontaneous? You bet. But it is not easy. The hardest part of being in business for yourself is that there is no steady source of income; a paycheck does not come every two weeks.

• Risk. What is an entrepreneur? An entrepreneur is someone who is willing to take a risk with money to make money. Not all entrepreneurial ventures are successful. The willingness to take a smart, calculated risk is the hallmark of a smart entrepreneur. But even calculated risks are still risks. You could make a million or you could go bankrupt.

• Lack of structure. Many people like the structure of working for someone else. They know what is expected of them and what they need to accomplish each day. This is not true when you work for yourself. The work is very unpredictable.

You need to consider carefully both the risks and rewards of entrepreneurship before deciding to jump in. It is easy to become infatuated with the idea of owning your own business. But if you are going to do it right, if you are going to be successful, you need to take emotion out of the equation. You have to begin to think like a businessman, consider the risks, and make an informed, intelligent, calculated decision.