Pros & Cons of Entrepreneurship: Is It Right for You?
I can assume since you’re reading this post that you’re interested in being an entrepreneur. But is it right for you?
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Entrepreneurship is one of the sexiest words being thrown around in many circles today. Everyone thinks they have the next product or service that will revolutionize how we do things.
There are tons of posts on social media in this vein. People are doing big things, they’re grinding—or so they think. For some, this is true; for others, they are simply in love with the idea of being a self-sufficient entrepreneur.
I want to explore some of the pros and cons of entrepreneurship to dispel some of the fallacies.
What Exactly Is an Entrepreneur?
Webster’s dictionary defines entrepreneur as “one who organizes, manages, and assumes the risks of a business or enterprise.”
At its essence, it’s a person who starts a business. It’s someone who is willing to risk loss in order to make money. This individual should also be a leader, who is innovative, tenacious, and possesses farsightedness.
The process of becoming an entrepreneur begins with taking on risk. You have to be willing to embrace this and move beyond what everyone is telling you—and beyond everything you might be telling yourself!
Being an entrepreneur has its perks, to be sure, but there are many downfalls, as well. So, let’s take a closer look at some of the pros and cons.
(I must disclose that I am slightly biased because I have always worked for myself or my family in some capacity—aside from menial jobs I had during my teen years.)
Why is Entrepreneurship so Enticing?
I believe it’s the glitz and glamour of working on your own terms that’s super enticing. It’s also the allure of being able to work when you want.
It’s being able to choose what you prioritize and focus on based on what you believe is important. And let’s be honest, it’s being your own boss.
A Realistic View of Entrepreneurship
At an early age, I witnessed the sacrifices that come with being an entrepreneur. Before I could even spell the “e” word, I watched my mom sacrifice.
She left a well-paying career as a nurse supervisor to pursue her dream. This change was mind-boggling to so many people.
As an adult, I asked what made her take the risk. She told me it was more risky to continue working without being in control of her destiny than it was to leave.
But was that transition easy? Absolutely not. It was a burden we all had to bear, and it was a lifestyle change.
The sacrifice was real, and my dad, brother, and I did not adjust very well.
Things changed. For example, we went from getting groceries at Jewel and Dominick’s to Aldi and food pantries. We got old bread from the bakery at grocery stores.
I tell this story because this was reality—even though things did eventually work out for us.
Pros & Cons of Entrepreneurship
From my story above, we know that entrepreneurship is not all lipstick and daisies. There are truly some sacrifices that must be made.
However, with tenacity, dedication, and perseverance, you can reap the rewards of those earlier sacrifices.
- Time Freedom
- Family Freedom
- Tax Benefits (for business owners)
- Life Balance
- Free Market (free earner, no caps on income)
- Limitless Creativity
- Inconsistent Income
- Time Management (not a 9 to 5)
- Increased Isolation (less engagement with others at times)
- Must Be Multifaceted (cannot be one dimensional)
- Lack of Employment Benefits
I mention all of these to call attention to the trade-offs when starting out as an entrepreneur. It’s not for everyone, and please think of your family when making this decision.
The great thing about real estate is that there are options. You can be a passive investor and continue to maintain your W2 employment, or you can be full time and push yourself to your greatness.
The choice is yours.
Do you intend to fully ditch your W2 job? Are you willing to take on all the risks and put in all the hard work associated with being an entrepreneur?
Tell me why or why not in a comment!