Why running your own business is not for everyone

More than 4,500 business owners register with KVK on a weekly basis. While there are many benefits to running your own business, there are also things that can dampen the fun. We have listed some of them below. 

1. Working 24/7

Working 40 hours a week? Working part-time? These terms are not part of the vocabulary of the average business owner. You can be certain that setting up your own business takes up more time than a full-time job. Your work never ends: customers or clients will call you outside office hours and expect you to respond right away. You need to keep your administration up to date – so when do you have time to attract new customers?

Research shows that many independent business owners regularly experience stress. If this stress becomes overwhelming, you run the risk of burn out. The implications of this are substantial. You can no longer meet your commitments to your clients or customers, and may even lose income. 

2. Discipline is essential

We have all been there: after a busy and fun weekend, your alarm clock lets you know it is morning. However, as an independent business owner, you are not required to attend early morning meetings. So, who or what is keeping you from hitting the snooze button? As an independent business owner, you must be disciplined enough to start work on time. And then there is the discipline for keeping appointments with clients and for keeping your records. As an entrepreneur, it is tempting to put off less enjoyable work.

3. Waiting for your money

Non-paying customers and clients cause irritation and stress to business owners. As an employee, you receive your salary punctually every month. It is nice and straightforward, and you can be sure there is enough money in your account to cover your monthly direct debits. When you run your own business, you often have to chase up your payments yourself. Some clients keep you waiting for weeks for your money.

4. Income

And once that payment has come in, you will find that the bills come in faster than your income. Running a business is all about investment, especially at the start. It takes time and money to find customers and build up your business. If you do it right, you will eventually start making money. But not all entrepreneurs manage to do that. Check whether you can earn enough money with your plan.

5. Responsible for everything

One thing that many new business owners overlook is that you will be faced with mountains of work. And some may not be in your wheelhouse. This includes creating invoices, filing tax returns, designing a website, creating content for social media, handling customer service, and so on.

As a sole proprietor, you bear the full responsibility for your business, including tasks you do not like. You can outsource jobs you may be less good at, but you probably cannot afford this. Especially at the start, you will end up taking on most of the work. 

6. Time costs money

Manage your own time is seen as one of the biggest advantages of owning your own business. While nobody tells you what to do, you should take into account that all your time costs money. Are you sick? For entrepreneurs it can mean they have to continue working, rather than spending the day in bed. Otherwise you will not make any money.

The same goes for holidays. When can you set aside some time for this? Especially when you first start out, it is hard to turn down work. After all, who knows if you will still have enough work 6 months from now? 

7. Solitary

Managing your own time and directing your own business gives you a lot of freedom. You do not have to deal with unpleasant co-workers who always criticise your exciting new plans. Still, that critical viewpoint can be useful, as feedback keeps you on your feet and enables you to keep developing.

As a new business owner, you may also miss having co-workers. Especially when you are just starting out, you will run into issues you may not have any experience with yet. You also need to deal with tough and demanding customers, without having anyone nearby to give you pointers or against whom you can vent your frustration. You can, however, seek free advice from the KVK Advice Team. Alternatively, check with your trade association for networking events.

8. Substantial risk

An entrepreneur’s existence is risky, and not only in terms of income. Unless you make arrangements, you will not accrue any pension benefits, and will not have any social safety net if you get sick. Obviously, you can save for your own retirement and there are even favourable terms available, but you will need to make all the arrangements yourself. 

Insurance for business owners costs money. The amount you pay in premiums depends on the risk to which you are exposed. A nail stylist, for example, is less at risk of becoming disabled than, say, a builder. In addition, you will run risks that people in paid employment are simply not exposed to, such as damage to your building or inventories. Then there are legal disputes relating to unpaid bills and other issues.

So, as you can see, running your own business has its downsides. But also many advantages. Weigh them up and decide for yourself whether running your own business is right for you or not.