Thinking About Starting an Internet Business? (Part One)

November 10, 2007

I know the internet is plastered with pages and pages of stories about how people became overnight successes by using the internet to make money.  It’s no wonder that most people have “become internet business owner” on their secret wishlist of things to do; but if you are serious about starting your own internet-based business, you should make sure you are prepared for reality!  It’s rarely (if ever) as easy as people might make it seem, and no matter how many times you’ve heard it, chances are- you cannot make millions of dollars overnight just by throwing up a web site.

That being said, there is some truth to it all… you do have more flexible hours than if you worked for someone else in their office.  You can work first thing in the morning or late at night, whenever your mind is at it’s best.  But there are some serious disadvantages for working for yourself, too, that should not be overlooked.  Think carefully whether you can handle the following scenarios:

Loss of reliable, predictable income.

While there is really no job that is 100% guaranteed to last as long as you want it, when you work for yourself you won’t be certain that you’ll have enough sales each week to make a predictable salary.  Especially when you’re just starting out.  You may have really good, profitable weeks, followed by weeks where you barely make enough to cover your expenses.

You are one with your business.

In other words- when you work for yourself, it’s possible that your business becomes inseparable from your life.  When you are employed by a company, you go to work and you come home.  That’s about it.  When you are self employed, you are likely to work round the clock, especially when you’re just starting out.  It can be hard for new business owners to find the happy work-life balance everyone dreams of.

Say goodbye to paid sick leave and vacation time

As a business owner, you aren’t guaranteed a certain number of sick days each year, so you either work while your sick or you take days off without “pay”.  In other words- with most self employed businesses if you aren’t working, you aren’t going to be making money.

Retirement is your responsibility.

When you are employed full time by a company, you are often given some sort of retirement plan.  Your employer may or may not contribute to it, but at least you are earning something towards your future years when you aren’t working.  When you work for yourself, it’s up to you to set aside money for your retirement years.

Posted in Starting a Small Business