This entire article is to provide a checklist of question you should ask yourself if you believe you are ready to work for yourself. While self-employment provides various opportunities and benefits to enrich one’s life, it does come with several challenges. Let’s get started!
Ready To Work For Yourself Questions
Question 1: Why Do You Want To Work For Yourself?
Before you get deep into building your business plan and finding a staff, you need to ask yourself why do you want to work for yourself?
Most people jump into self-employment because they are tired of working for someone else. Yet, we’re all tired of working for someone else! Having to clock in and out and do tasks you don’t want to do bothers everyone. So if you feel this way, you’re not ready for self-employment.
I’ll provide my answer as an example. I want to work for myself for the following reasons:
- Build my own empire / legacy
- Put my creations onto the market
- Perform the work which interests me greatly.
Question 2: Are You Aware Of The Small Business Failure Rates?
Self-employment is difficult and many businesses fail. According to Fundera:
20% of small businesses fail in their first year, 30% of small business fail in their second year, and 50% of small businesses fail after five years in business. Finally, 70% of small business owners fail in their 10th year in business.
I don’t mean to depress you with those stats, but it’s important to see how many businesses fail. Yes, some fail because of a bad plan or a poor product. Others fail because they run out of money. Now you know the stats and the reasons so you can better prepare yourself and your business.
Question 3: Are You Willing To Work Hard?
I know you are ready to work for yourself but are you ready to work hard and long hours? If you’re not then self-employment isn’t for you.
Remember, everything is on you now: Hiring decisions, marketing plans, product placement, and so much more. On top of that, you must be willing to come in early and stay late.
Oh yeah, many people go into self-employment to work less hours but you will find out most owners don’t. A Gallup survey shows 33% of small business owners work more than 50 hours a week! If you’re not willing to put in the long hours then self-employment isn’t for you.
Question 4: Are You Willing To Live Lean?
Self-employment requires not only as your time as an investment, but your money too. So are you willing to live as lean as you can to grow your business?
Many businesses do not make a profit within their first year. Freshbooks states it may take 2 to 3 years for a business to make a profit. Now, if you have a home-based business, you’re in a better position to make a profit due to the low startup costs.
Living lean means not going out to eat, or selling your car to invest that money into the business. Some people even move into a smaller hour or rent out rooms. If you’re not willing to cut your expenses to finance your business, then you are not ready to work for yourself.
Question 5: Can You Handle Multiple Tasks?
When you’re the boss of your own business, you have to work multiple jobs. Not only are you the owner, but you may be the accountant, tech support, sales, and even the janitor. Are you willing to work those tasks and more?
Oh yeah, you can outsource some of those duties, but that’s another expense. And it may be one you can’t afford right now. Now some people don’t feel comfortable enough doing certain tasks but you can learn. YouTube has plenty of videos, or you can get a mentor from your local SBA / SCORE.
If you went through this checklist and you don’t believe you’re ready to work for yourself currently, that’s fine. You can prepare so you are ready in the future. Or may being your own boss isn’t for you.
However, if this checklist shows you are ready to work for yourself then congrats! Go ahead and open that business.
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