Entrepreneurship has its own share of rewards and downsides, just like any other job out there. Knowing both sides before you choose to become an entrepreneur is crucial in order to make an informed decision. Although being your own boss is an attractive dream, it is not something that works for everyone. Here are some of the important pros and cons of entrepreneurship.
Control and Decision-Making
When you are an entrepreneur, you choose the work you want to do and ensure that each task maximizes your strengths and skills. Your can ensure that your skills directly correlate to your earning potential.
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As an entrepreneur, however, you are required to make all the decisions. This process can take up a lot of time and energy. It also often comes with a lot of paperwork. Moreover, some decisions can be difficult to make such as laying off employees.
Flexibility and Unpredictability
You are free to work and stop working whenever you want. In fact many people do not consider the process as actual work since they are doing something that they love. You can also work wherever you wish, be it at home or in a coffee shop or even at the beach.
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Your work schedule is flexible, but it can also be quite unpredictable. Often, if you want to get the job done, you would have to work longer hours than if you were just a regular employee. It is not unheard of for an entrepreneur to work 7 days a week in a row.
The income you earn depends not just on market factors, but also primarily on the outcomes of your efforts and the success of your business. The amount you receive is directly related to the work you have done and your contributions to your business.
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Since you are not an employee, you do not have the security of a regular paycheck. If there are certain shocks to the market, for instance, your personal income will be at risk. Many entrepreneurs actually make the mistake of planning their income during good times, instead of during lean months.