The Advantages and Pitfalls of Self Employment

Thousands make the plunge only a few can swim.record.
Every day, thousands of people across the United- A proven business plan and marketing plan is in place.
States decide to make the plunge into- Training and consulting are provided.
self-employment. There are as many reasons why- Problems have already been discovered and ironed
people become convinced that going into business isout.
right for them as there are occupations. Even though- Financial support is included in some franchises.
the failure rate is extremely high, self-employmentDisadvantages
continues to be sought after as an American dream.- Some businesses for sale may be because they are
The following is some reasons why you might beexperiencing difficulties. Look into the background of
prompted to start your own business as well as somethe business and make sure you fully understand the
pitfalls to consider.reasons for selling. You don't want to purchase a
You Have Come Up With A Super Business Ideawhite elephant that will need more investment than it's
Sometimes what seems like a good business idea toworth. You also don't want to have to overcome a
you may not be so sound when put into practice.negative management reputation.
Unless you have a revolutionary new invention or a- Buying the rights to a franchise or a license to sell a
new product or service, or an original idea or solutionparticular product or service not only ties you to the
that deals with an everyday problem you probably willproduct or service but may be expensive also. With a
be repeating what thousands have done before you.franchise, there is a franchise conduct that depicts a
Something to consider doing:particular way to run the business that you have to
- Filling a gap in the market that big business can't orstick with.
won't concentrate onA business opportunity
- Stay within a field of business you are alreadySometimes the opportunity of owning your own
familiar withbusiness comes with or without warning. You may be
- Follow a passion by turning an interest or hobby intooffered the opportunity to buy out your employer, or
a businesstake over a family business.
No matter what your great idea is, you need to beOpportunities like these may require lots of personal
sure that it is not only a viable business venture but it iscommitment and you may need to put your own
something you will also be comfortable with.money on the line. Just because you are familiar with
Before doing anything be honest and ask yourselfthe business, you still need to carefully examine the
these Questionsbusiness to make sure it is worth becoming involved in.
- Why would anyone want to do business with me?Advantages
- Do I have enough relevant experience and- All aspects of the business including a marketing plan
expertise?should already be active.
- Is there a need for my product or service?- An established customers base , reliable revenue, an
- How will I reach out or market to my customerestablished name to capitalize and build on, and a list of
base?useful contacts.
- Are there others in the same business and who will- You probably already know a lot about the product
be my main competitors?or service and have a good understanding of the
- What sets my product or service apart from similarbusiness.
offerings?Disadvantages
- Do I have or can I get enough funding?- You may be taking on a failing business. Ask if there
Remember, what can go wrong probably will?are any problems with the business, and if so, how can
The tried and tested businessyou best solve them?
Some self-employed people choose to stay within- Stepping into your employer's shoes does not mean
tried and proven businesses such as buying a turn-keyyou automatically retain his/her support services.
package an established business or licensing rights to aRemember, you are the responsible party. It's up to
franchise - which may be higher cost at first but carryyou to provide everything such as accounting, staff
fewer risks than developing your own idea.management, suppliers, business location and payroll.
AdvantagesThis has only been a sampling of business ideas and
- More attractive for investors.their possibilities. Stay focused, be diligent and most of
- A market for the product or service has a trackall proceed with caution.