Many people dream of becoming their own work from home boss. The thought of never having to answer to someone else seems like a dream come true, as does the ability to be able to make your own decisions and to be in complete control of your financial future. But, is being your own work from home boss as great as it seems to be? Or, are there cons that you might not have considered?
Being Your Own Work from Home Boss Means Taking Responsibility
Believe it or not, there are cons to being your own work from home boss. For example, while it may seem desirable to be able to make all of your own decisions, that responsibility can also be a bit frightening. After all, the entire success of your business is dependant upon you and your ability to make the right decisions. The wrong decision can cause your entire business to fall apart. When you work for someone else, particularly a large and established company, one wrong decision may set the company back but, in most cases, you will still have a job and feel very little repercussion from the bad decision. With a work from home business, you will feel the results completely.
Being Your Own Work from Home Boss Means Taking on Long Hours
In addition to having to holster the responsibilities of your business, being your own work from home boss also generally translates into long hours. This is particularly true when you first start the business. After all, it takes time and commitment to get a business started. In addition, if you are providing a service, you will have to spend time performing that service as well as taking care of the "behind the scenes" business aspects of the business, such as marketing, promoting, accounting, and other necessary paperwork. In fact, until you build up a solid client base, you will likely find the majority of your time is spent acquiring new clients.
As an employee of a larger company, you generally do not have to worry about these aspects of the business. You simply come in each day, do your job, and receive a paycheck at the end of the week. When you are your own work from home boss, you do not necessarily know when the next check will come.
Being Your Own Work from Home Boss Means Accepting Responsibility
Another downfall to being your own work from home boss is liability. When most people first start out, they form a sole proprietorship for tax purposes. This is because there is no extra paperwork involved and is, by far, the easiest business formation to follow. The downside to having a sole proprietorship as opposed to an LLC or corporation, for example, is that you and the business are considered to be one in the same. This means that, if someone sues your business, you are personally sued as well. In addition, any debt accrued by the sole proprietorship is your responsibility.
If you change your business formation to an LLC, you will not have to worry about you and your business being one and the same. But, most people do not realize these differences when they first start out. Or, they do not pursue alternate business formations because they are too costly or too confusing. When you are your own work from home boss, you need to take the responsibility for pursuing these options in order to protect yourself and your business.
© 2006 Shannon Kietzman. All rights reserved.