The Risks and Rewards of Entrepreneurship
Window cleaning professionals who own their own businesses often earn great rewards for their hard work, but they also face risks that regular employees don't. From disasters to unpaid invoices, to legal issues and retirement... entrepreneurship isn't for everyone. Some days you may lose sleep thinking about how tight financially the winter will be. Then it’s not over when you wake up to tackle the spring season. With the stresses and responsibilities, you might not get a good night’s sleep until summer. So is it worth it?
A new survey from online accounting software maker FreshBooks shines a light on the challenges small business owners face. The survey, “Self-Employed Professionals and Small Business Owners in America: The Rewards and Challenges of Career Independence,” revealed that the majority (7 in 10) of self-employed individuals have no intention of returning to traditional employment and intend to grow their business. Is that a clue that the rewards do outweigh the risks?
Some of the Risks
Its daunting to think about the multiple roles a small business owner must bear. Are you financially savvy enough to pay employees? Are you personable enough to sell? Are you tough enough to call a client about a past due invoice? In the survey quoted earlier, more than half of all respondents said they were unprepared should a large invoice go unpaid.
Which leads me to one of the single largest reasons why small business owners lose sleep at night; unexpected financial setbacks. This often opens a Pandora’s box of expertise needed that the average window cleaner is unfamiliar with, i.e. legal, insurance, accounting, etc. Many small business owners, newer especially, find it difficult or nearly impossible to find lending to cover current cash flows in this case. The nightmare of such a scenario tends to lead to the reality of layoffs, reduced personal income, and possibly closing the business..