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Seven honest questions you need to ask yourself if you want to be your own boss

Seven honest questions you need to ask yourself if you want to be your own boss

How To Afford The Life You Want

Seven honest questions you need to ask yourself if you want to be your own boss

With a good plan and hard work, you could build your own business empire just like how Pharrell’s done it in music and fashion. Source: Giphy.com Being self-employed means having the freedom to chase your dreams — but no more sick days. Are you ready for it? BY RYAN ONG The lives of the successful self-employed can seem like a dream. They make more money, call the shots, and work on their own time. What’s seldom seen, however, is the frenzied effort and risks that goes into that success story. If you want to be your own boss, here are seven difficult decisions you’ll have to make. Just one word of caution: Being your own boss is a high-risk proposition. You need to ensure your financial security is intact before you start, by properly insuring yourself and your business. Okay, now to the list that might change your life forever. We recommend reading this to an inspiring playlist. 1. Do you enjoy taking on multiple roles?

Source: Giphy.com If the concept of wearing multiple hats and taking on different roles in a business gets you real excited in the morning, that’s a great starting point for setting up your own business. From meeting with investors, to marketing your product to the right audiences, to smoothening out the logistics of your supply chain while ensuring the respective account books are balanced, you’ll be the one front and centre until you’ve gained some stability. For some, this might be a tad daunting. But if you’re hungry to hone your skills in various aspects of the business, you’re on the right track to start something up. 2. Are you willing to give up personal time and sick days?

Source: Rebloggy.com It might seem obvious, but it doesn’t occur to many that if you are self-employed, you will not have annual leave or sick days. The client will expect your work to arrive at the given deadline, even if you have to cancel a family trip or work while you’re down with the stomach flu. This can and will impact your relationships, your hobbies, your exercise routine, and more. Decide if you are ready to deal with this before proceeding and perhaps also decide on a cut-off point at which you will explore other options. For example, “I will go back to regular work if I am not making at least S$5,000 a month in one year.” 3. Are you willing to accept a fluctuating income?

Source: Giphy.com Your income will be high on some months, and low on others. You will feel a little like a farmer (but a really, really good-looking farmer, of course), constantly on edge about the season’s weather conditions. You will also need to be adaptable to the ups and downs and perhaps even enjoy the thrill of dealing with situations as and when they arise. Can you live with uncertainty? 4. Are you ready to handle awkward conversations?

Source: Gifsoup.com Your success will be proportionate to the number of awkward conversations you’re willing to have. This could mean an argument with the client’s sales team because they refuse to work with the social media campaign you’ve built for the client. It could even mean threatening to take a late paying client to court. Also, remember that clients can be sharks when negotiating your prices down (“You’re new, so we’ll let you do this for us for free. It’s great exposure!”). Setting the price you need — and sticking to it — is tough. Decide if you have the stomach for these difficult situations because when you’re self-employed, you’ll have to take these matters head-on. 5. Business partners, or just good friends?

Source: Giphy.com Even before starting your own business, you must decide if you can work with your key (irreplaceable) partners. For example, say you are going to be a distributor for designer T-shirts. The supplier is then a key partner. Is the supplier organised, or always late? Are they flexible regarding how many lots you must order? Will they allow their other distributors to undercut you? Will they decide to raise their own margins later, thus forcing you to raise prices or earn less? You need to work out these issues with every key partner before you begin … even if they are your friends. Failing to do so can destroy your profits — or your entire business model — quite quickly. 6. Are you ready to set aside the required capital?

Source: Giphy.com Every business requires start-up capital. If you want to be a freelancer, you should save up six months of your income before going at it alone. If you are running a business, you’ll need more. Have you got enough set aside to lease an office? Can you pay for laptops, company insurance, and the services you’ll need? It is not easy to file business taxes yourself. Can you pay for basic legal documents to be drafted, if your clients need to be given contracts? In general, you should have enough saved to manage at least six months of losses. This is the timespan most new businesses take to break even. In essence, there are certain financial decisions you’ll need to make now in order to have the necessary funds for your business down the road. Set a plan in motion if you haven’t already done so. If you don’t know where to begin, you need to talk to someone who does. Call a financial advisor. 7. Are you still reading till this point?

Source: Giphy.com If you’re not shaken after reading all that, you should totally consider chasing your dreams. You might not want (or be able) to quit your job tomorrow and immediately get in touch with ACRA, but knowing the obstacles that every business owner will face, and making the right choices beforehand to learn the relevant skills to tackle them, puts you in a better position to start something that many others before you have not had the nerve for. In truth, though there is a need for prudence before you decide to dive into your own venture, it will be your own tenacity and persistence that will see you succeed in the long run. Keep hustlin’. Right this way for more stories on how to afford the life you want.

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