If you’re an aspiring entrepreneur, or even if you’re already running your own business, you might be wondering what the benefits are of being an entrepreneur. Is all the stress worth it?
After all, it can be a lot of work to get a business off the ground, and there are no guarantees of success. So why bother?
In this post, I’ll explore the benefits of being an entrepreneur, some of the downsides of becoming a business owner, how to become an entrepreneur, and much more. Let’s get started!
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What is an Entrepreneur?
An entrepreneur is someone who starts and runs their own business. They’re usually the ones with the big ideas, and they’re always looking for new ways to grow their businesses.
As a business owner you can have many different tasks and responsibilities, from coming up with new product ideas to managing a team of employees.
However, one of the main things that sets entrepreneurs apart from other people is their willingness to take risks.
Starting your own business can be a risky proposition, and many entrepreneurs are willing to put everything on the line to make their dreams a reality.
Of course, not all entrepreneurs are successful, but those who are often enjoy a number of benefits.
What is a Serial Entrepreneur?
Serial entrepreneurs are those who have started multiple businesses and enjoy the process of starting new ventures.
For many serial entrepreneurs, the challenge and excitement of starting a new business is what drives them.
Some examples of popular serial entrepreneurs include Richard Branson, Mark Cuban, among many others.
What is a Solopreneur?
Solopreneurs are entrepreneurs who work alone to build their business. These business owners bootstrap their ways to success and don’t usually have employees or a team working with them.
While it can be harder to grow a business as a solopreneur, many people enjoy the independence and autonomy that comes with this type of business ownership.
The Benefits of Being an Entrepreneur
There are many pros and cons to being an entrepreneur and running your own company. Below are some of the most common.
Work When You Want with a Flexible Schedule
There are two main benefits of being an entrepreneur that most people will point to when finally deciding to take the risk of becoming an entrepreneur: working your own hours, and the potential income.
Being your own boss allows you to work the hours you want whereas a full-time job likely will require you to work 9-to-5, 5 days a week.
If you’re building a start up company, you might actually work much more than you would at a day job – but it’s your choice.
If you can get all of your tasks done in a few hours, then you can take the rest of the day off.
Working your own schedule is one of the biggest benefits of being an entrepreneur and is certainly attractive from an outsiders prospective.
Unlimited Income Potential
Another key benefit of entrepreneurship is the unlimited income potential. Because the amount of money you can make is essentially uncapped, this can be motivating for many people.
However, just because you have a large income potential doesn’t mean you’ll make money right away. In fact, most businesses will fail within the first few years of starting.
Many successful entrepreneurs will reinvest their earnings back into their business to help it grow in the beginning years, so it’s important to have a long-term perspective when starting your own company.
Gain New Skills
The skills you develop in entrepreneurship can be applied to other areas of your life.
For instance, leadership skills, marketing skills, and sales skills can all be honed through running your own business.
Plus, you’ll learn new things about business and yourself that you never would have discovered working for someone else.
These skills can not only help you in your business ventures, but also in your personal life.
For instance, if you’re looking to start a family, being an entrepreneur can help you be a better parent as you’ll have to juggle many different responsibilities at once.
Sense of Pride and Accomplishment
Building your own business and becoming your own boss can certainly become a sense of pride and accomplishment.
Because entrepreneurship can be so challenging, it can be very rewarding if you’re capable of succeeding.
This self confidence can then be transferred to other areas of life so you can succeed in other areas outside of your job.
Networking with Others
While some entrepreneurs can get a bit lonely, working for yourself also gives you the opportunity to network with other like-minded individuals.
You’ll meet other entrepreneurs at events, through business deals, and just through general networking.
This is a great opportunity to learn from others, as well as to find potential business partners or customers.
Boost in Creativity
Many jobs will keep you confined to your specific tasks and responsibilities.
However, entrepreneurship often requires you to wear many hats and be involved in many different aspects of the business.
This can lead to a boost in creativity as you’ll be constantly thinking of new ideas to help grow your business.
You’ll also be more open to new and innovative ideas as you’ll need to stand out in order to succeed.
Lower Stress of Dealing with People
When you work a job, there are people you’ll likely encounter on a regular basis. Some of these people can be difficult to deal with, which can lead to stress.
As an entrepreneur, you’ll have more control over who you work with and won’t have to deal with as many people on a regular basis.
Of course, you’ll still need to interact with clients and customers, but you’ll likely have more control over these interactions.
This can lead to a lower stress level as you won’t have to deal with difficult personalities on a regular basis.
No More Office Politics!
In entrepreneurship, the office politics get set aside. Of course, there may be some politics within your own company, but you won’t have to deal with the politics of a large corporation.
This can be a refreshing change for many people who are sick of the office politics that come with working for someone else.
You can develop the systems and processes for your company to make it run as smoothly as possible.
Make a Positive Impact on the World
Some entrepreneurs are inspired by helping others.
There are many ways to make a positive impact on the world, and as an entrepreneur, you have the opportunity to do just that.
You can use your business to help solve a problem in your community or even the world.
By starting a non-profit organization you can help the greater good which can be incredibly rewarding for many people.
Create Your Ideal Lifestyle
This is a benefit that’s often overlooked but is so important. As an entrepreneur, you have the ability to create your ideal lifestyle.
You can work from anywhere in the world, set your own hours, and make as much money as you want.
Of course, this takes a lot of hard work and dedication, but it’s possible.
For example, many digital nomads and online business owners will work while traveling, giving them the lifestyle they desire. While this isn’t possible with every business, it is with some.
As your business grows, you might hire employees to help you on your journey. Some entrepreneurs like the ability to help others and give them a life they deserve as an employee.
Offering opportunities for employees and creating jobs for their local community can be a major benefit for some entrepreneurs.
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Downsides of Entrepreneurship
While entrepreneurship comes with many benefits, there are also some downsides you’ll want to consider.
Mental Health Challenges
Being and entrepreneur can be difficult for your mental health at times, especially if you’re working as a solopreneur.
Dealing with the ups and downs of running a business and the world of entrepreneurship can be very difficult.
Because you assume all the risk of the business it can feel overwhelming at times.
It’s important to have a solid support system in place to help you through the tough times.
You’ll also want to make sure you’re taking care of your physical health as well, as this can help improve your mental state.
Being self employed can be scary. Because you might not have a consistent income, you’ll take a financial risk to work on your business. You control your own destiny when it comes to your finances.
Because business is constantly changing it can be difficult to predict your income, which can make it challenging to manage your finances and plan for the future.
For many new entrepreneurs, you’ll have to work hard and be wiling to work long hours to become successful.
Most entrepreneurs can end up working over 50 hours a week on their new business which can be very difficult to maintain.
It’s important to have a work-life balance when you’re an entrepreneur or you’ll quickly burnout.
Try to create boundaries in your life and business to help maintain a healthy schedule that allows you to meet the needs of your business and family.
In entrepreneurship you’ll need to have a wide range of skills to be successful.
If you’re just getting started in the entrepreneurial life, you’ll quickly realize how many different aspects of business there are to handle.
Between the operations, finances, and marketing of your products or services, it can quickly become overwhelming.
When you’re just getting started in entrepreneurship, you might need to find money to get started, assuming you don’t have a large cash pile you’ve been saving.
While there are some businesses you can start for less than $1,000 – there are plenty of business ideas that will require some serious capital.
Finding where to get money from will be one of the key decisions you will be forced to make when starting.
If you’re working in a career that offers benefits, you’ll be forced to pay these out of pocket to keep them.
One of the main benefits you lose when leaving your career is health insurance.
Unless your spouse has health insurance that you could qualify for, you’ll need to pay for it yourself.
Health insurance for self employed people and business owners can be extremely expensive.
If you have a family, you can expect to pay over $1,200 a month for suboptimal insurance. Many catastrophic insurance plans (that offer bare minimal coverage and extremely high deductibles) will still cost a significant amount. Check out the video below for ideas navigating these expenses.
Another common benefit that comes with your career is a 401k of some sort. It’s common for employers to offer a match incentive for employees who contribute to the 401k.
As an entrepreneur, you’ll need to find other ways to save for retirement.
You can use an account like an IRA or a solo 401k – but it’s something to consider when thinking about the costs of becoming an entrepreneur.
If you’re looking to buy a new home and you want to become an entrepreneur, this can make the process much more complex.
Most mortgage companies will require you to show at least 2 years of income being self-employed before they will approve you for a loan.
This means that as a new entrepreneur, you likely won’t be qualified for a mortgage within a few years.
If you have a successful business that has allowed you save money and a spouse with a full-time job, this can help your circumstances.
How to Become an Entrepreneur
Becoming an entrepreneur can be simple, but it will require a significant amount of self discipline and hard work.
Start by Finding Your Passion
If you’re not passionate about your business, it’ll be very difficult to succeed. It’s important to choose a business that you’re excited about so that you can put your all into it.
For some people, their passion is something that they’ve been interested in for their whole lives. Others find their passion through trial and error. It’s important to keep exploring until you find something that you’re truly passionate about.
Get a Mentor
One of the best ways to learn how to become an entrepreneur is to find someone who is already successful and ask for their advice. A mentor can teach you the ropes, give you helpful tips, and help you avoid making common mistakes.
Just Get Started
One of the most common things potential entrepreneurs do is fail to get started. They spend months or even years planning and researching, but they never actually take the plunge.
If you’re serious about becoming an entrepreneur, you need to take the first step and just get started. You can always fine-tune your business as you go along.
Start a Side Hustle First
If you’re unsure about going full-time as an entrepreneur, the best method of action is to start a side hustle to test the waters.
By starting a side hustle you can experience some of the same challenges and benefits of entrepreneurship without quitting your day job.
This way, if your side hustle is successful, you can transition to being a full-time entrepreneur.
If it isn’t quite successful, you still have a job to fall back on.
There are plenty of side hustles you can try to get started. Below are a few options:
Have a Business Plan
Having a business plan is essential to start and grow your own businesses. Most successful entrepreneurs have a clear idea of what they want their business to achieve.
Your business plan should include your goals, strategies, and a timeline for achieving them. This will help you stay on track and make sure your business is heading in the right direction.
You can learn more about creating a business plan here!
Final Thoughts on the Benefits of Being an Entrepreneur
Being an entrepreneur comes with many benefits. A flexible schedule, being your own boss, and having financial freedom are just a few of the benefits of entrepreneurship.
Of course, entrepreneurship also comes with its own set of challenges. Long hours, an unsteady income, and a maneuvering a constantly changing environment can be difficult.
But for many people, the benefits of being an entrepreneur far outweigh the challenges. If you’re thinking about becoming an entrepreneur, the best course of action is to just get started.
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