Running a business is a challenging task. First, you need to invest effort, time, and money at the start of your business. Then, once it’s up and running, you also have to work hard to make sure your business stays afloat and makes a profit.
But, being an employee in a company is also not a good choice. You have to deal with bosses, play with office politics or spend a lot of personal time on office matters. Not to mention, your salary and job security are determined by the company, not yourself.
Making more money
If you have enough money, setting up a business is one way to make more money. You may want to diversify your money by starting a new business. It is an alternative to investing money in addition to placing it in various asset classes such as bonds, stocks, or commodities. As with investing in assets, setting up a business also allows you to earn more money.
Commercializing a hobby or skill
You can monetize your skills or hobbies. For example, you are an animal lover. You can commercialize your hobby by building a website. For example, you create a forum on your website to earn money from advertising or affiliate links.
Likewise, if you are a professional or a teacher, you can also use the website to monetize your skills. For example, you can provide courses or consulting services.
By commercializing your hobbies and skills, you can work according to your own passion. As a result, you are more passionate and responsible for maximizing effort. And at the same time, you earn extra money.
Be your own boss
When you set up a business, you will be your own boss. You’re not just being a yes-man. You have flexibility and control over your time and work life. You don’t have to sacrifice your fun to please your boss as you would when you work for a company.
Running a business also makes it easy for you to manage time like vacations and work. As the owner, you can determine when to work and rest without being afraid of your boss.
But, it may not be in the beginning when you start a business. Business is a long-term investment. So, you invest your effort and time now to generate more benefits in the future.
As a business owner, you earn your own income. Therefore, you depend on your own efforts to earn more money. On the other hand, if you work for a company, your salary is already set.
Then, you don’t depend on education or a higher position to increase your income as when you work for a company. By running a business, you can manage your income according to your business profit. It, of course, requires your commitment and smart work to grow the business and make more money.
Business is one way for you to satisfy yourself. For example, you may be happy to help solve problems around you. Then, you set up a social enterprise for that reason. Alternatively, you can commercialize the product and choose to use the profits to support charities or other social and environmental causes.
Another reason for satisfaction is recognition. You start a business to gain recognition from those around you, your family, and society. A successful business makes you proud and increases your social status.
Many entrepreneurs come from poor families. They try to get out of the poverty trap by starting a business. It gives them a chance for a better future. They are passionate and persistent in running the business. When successful, they can leave wealth and a better future for their families.
Loss of a job
Losing a job is not a reason to give up. Some people look for work elsewhere. However, you may prefer to start your own business. For example, you may supply products to your former company. Or you commercialize an interest or skill you have.
Starting your own business may also be an option for you when you are still working in a company. For example, you may be worried about your job security at the company, afraid of being fired at any time. Or, you are bored and depressed with politics in the office. You then choose to try new luck by starting your own business.