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Setting Up Your Own Business: A Welcome Alternative?

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Many people today are choosing to set up their own business rather than seek employment as this offers a welcome alternative to having a traditional job.  

Whilst it’s not all plain sailing, as there’s a significant risk of failure, there are many benefits to setting up your own business as an alternative to traditional employment, and this article looks at the pros and cons of setting up a business today.

Let’s start with the two main “cons”


A job offers financial stability in the sense that you have a contract that stipulates the amount you are guaranteed to earn, presuming you fulfil your obligations as an employee, whereas when you set-up a business the stability of a paycheck goes out the window.  

Indeed, there are lots of people that think they are doing the right thing by quitting their job and setting up on their own, but what they find is they trade a job with a decent paycheck for a lot of uncertainty, longer hours, and the potential for a lot less money should the business not take off - and almost all business have a gestation period where in the first few months they cost money rather than generate money.


Whilst there are many small business loans available today, such as those found at, there is a risk in taking out finance to pursue your dream of setting up a business.  Most first time entrepreneurs are naive when calculating the risk associated with setting up a new business, and often think things will be much more simple than they are - particularly when it comes to the capital required to set up.

Now the two main “pros”:


As a business owner you have much more control than an employee.  You are the boss so you determine when you work, what you do, how you do it, and where you do it.  This sense of control isn’t necessarily the same as having a sense of ‘freedom’ but it can lead to freedom, particularly if you set your business up in such a way that allows you to manage it remotely.



Employees don’t tend to get rich from their work as they are mostly stuck on a treadmill trading their time for money, meaning, there’s an inherent limit to how much money they can make as there’s only so many hours in a day and only so much they can get paid for each unit of time they work - whereas, a business owner has something known as time leverage; meaning they are leveraging the efforts of multiple people, or systems, that mean they can generate exponential wealth.

In summary, there are both pros and cons to setting up your own business versus. traditional employment and they are two very different undertakings for two very different type of people.  Employees tend to value the safety and security of a stable paycheck whereas entrepreneurs prefer the control and possibility of attaining great wealth that comes from owning a business.

One thing's for sure, the ideal entrepreneur is not necessarily the ideal employee, and vice versa.

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