The ability to be your own boss is a dream that almost everyone has. However, there is a huge cost that comes with having the right to control your own career. In addition to the financial costs of starting a business, there are also the emotional and mental costs that you have to consider. Let’s take a look at each of these costs and how you can properly manage them.
The Financial Cost of Being Your Own Boss
The first question that you have to answer is where you are going to find funding to run your company. Your startup capital will be needed to pay employees if you have any, pay for office space and pay for supplies. In addition to the hourly wages or salary that you provide for your employees, you may also have to withhold payroll taxes and pay for workers’ compensation insurance.
Both the state and federal government are going to collect business income taxes if you make a profit for the year. Even if you don’t make a profit, you still have to file a return, and that could cost hundreds if not thousands of dollars if done by an accountant. Finally, you have to consider the cost of licenses as well as state filing fees if you are going to operate as an LLC or corporation.
Therefore, it will be important that you know how you will finance operations and how you will be able to repay that money. A title loans Dallas company may be able to provide you with cash if you are willing to use your vehicle to secure the loan. Other sources of quick cash include personal loans or personal lines of credit.
The Emotional Cost of Being Your Own Boss
There is a lot on the line when you decide to start your own company. In some cases, you may need to mortgage your home or give up other assets to pay for business expenses, and that could cause strain in your marriage or other relationships. It may be especially difficult to start your own company if you know that your friends or family members aren’t behind you.
Even if your friends and family members are supportive, they may resent the fact that you have to spend up to 18 hours a day or more getting your company off the ground. Despite the commitment that you make, it could still take months or years before you draw a paycheck and are once again able to provide for yourself and your family. Those first few months or years can cause a lot of stress and anxiety that most people may not be able to handle.
The Mental Cost of Being Your Own Boss
Anything that your company does is ultimately your responsibility. If an employee says something nasty to a customer, that person will ask you why your employee was so rude. If a sexual harassment scandal unfolds within your ranks, you will be the one who is made to answer for that person’s actions.
In the event that a customer is hurt by your product or a client is hurt while on your premises, you could be liable for financial damages. Those financial costs will be in addition to the negative press and attention that is given to your brand. This is generally true even if you didn’t mean for anyone to get hurt.
As your company grows, investors and others are going to be looking at you to get the largest returns on their money. If you stop making new products or show even the slightest sign that your business isn’t growing, you could be dealing with a media backlash or a backlash for people within your business.
If you are not a mentally strong person or don’t take criticism well, it may be in your best interest to find a partner. This person can be the one who faces the media or otherwise acts as the front person for your brand while you do your work behind the scenes.
Starting your own business is not something that you want to take lightly. It takes a lot of money, a lot of time and a lot of mental stamina to start a company and lead it to profitability in a timely manner. It is critical that you have a plan and have a support network that is willing to work with you to ensure that your idea has the best possible chance to succeed.