A recent statistic caught my attention: Those who work for themselves tend to work more hours but report higher levels of life satisfaction and happiness. At first glance, this statement does not make sense. Why would people be happier if they had to work more? Wouldn’t they be more disgruntled?
The answers to this puzzle can be discerned when we look at the huge plusses you enjoy as a sole proprietor: You get to call all the shots, you don’t have to ask anyone for permission, you don’t have to attend boring meetings, you can take vacations whenever you want AND you don’t have to endure annual performance reviews. Here are other significant benefits to being a sole proprietor:
1. You can create your business with very little capital—startup costs can be surprisingly low for small businesses.
2. You can start with a vision that is all yours, implement it the way you like, make changes as you see fit, all without having to beg for authorization from higher-ups.
3. You can create your own healthy work culture. Say goodbye to toxic bosses, disagreeable co-workers maneuvering for power and office politics.
4. You can choose work that enables you to work from home, from a cafe, from Jamaica, from pretty much anywhere! You are not tied to showing your face at the office from 9 to 5.
5. You can enjoy flexibility, which is one of the most important upsides to being a sole proprietor. You can work nights, two hours or 12 hours a day, skip days when needed for caretaking or medical appointments. You do not have to ask a boss for approval. Nor do you have to worry that your job is on the line.
6. You can enjoy all the fruits of your labor. When you work for a big company, you may not see the results of your hard work because you feel like a cog in a massive machine. However, when you work for yourself, you know that every bit of work that you do will benefit you.
7. You enjoy the freedom of choice. If you don’t want to do a certain contract or work for an unpleasant customer, you don’t have to. No longer do you have to do something because your boss said so.
8. You can use the resources of our digital age to help you with unpleasant tasks.
9. You can work in your pajamas, shorts or any outfit you desire. There is no dress code. Every day can be Casual Friday!
10. You can be as creative as you want—no one is going to tell you that your vision doesn’t fit the company’s mission or that there is no budget for your innovations. No one will mess with your ideas, or worse, take credit for them.
Of course, the joys of being totally in charge also come with a lot of responsibility. If the business fails, that’s on you. If the business picks up, it’s on you to do the work. You have to be willing to adjust to fluctuating incomes, particularly at the beginning of your career.
As I stated at the beginning of the article, you might find yourself working more hours than you did in a regular job. Having your own business means that you and you alone are responsible for attending to customers. You might find yourself having to work on the weekends. Almost certainly, you might find yourself having to renegotiate what work-life balance means.
Another downside to working for yourself is the possibility of loneliness and isolation. You don’t have a team to turn to, to brainstorm ideas and to rely on. Luckily, this problem is easily addressed. You can take part in business support groups, join meetups and attend professional development groups, conferences and trade shows. In fact I would recommend that this be part of your business plan because people contact will help with marketing. You can also work in a shared working space and enjoy the company of like-minded entrepreneurs.
Of course, not everyone is suited to being a sole proprietor. If any of the following describes you, you might want to think twice before starting your own business:
1. You need a stable income
2. You are risk averse
3. You have no desire to work extra hours
4. You are indecisive and lean on people to make decisions for you
5. You love paid time off, free food and other work benefits like employer contributions to your 4O1(k)
6. You want instant gratification
7. You are prone to anxiety and are unable to cope with the stress of doing business
8. You lack real passion and commitment
9. You don’t like doing quarterly taxes
I’ve tried to give a balanced view of the pros and cons of being a sole proprietor. Nothing in this world is all rainbows and roses, but for those of you who desire to be in the driver’s seat in their careers, there is nothing that can match the satisfaction of owning one’s business. Don’t forget that you don’t have to quit your job to become a solopreneur. You can easily start one on the weekend while continuing with your full-time job. Who knows? After a trial period, you might decide to be your own boss full-time!
Anne Chan is a career consultant and licensed psychotherapist in California. She specializes in helping people find happiness in their careers and lives. You can reach her at [email protected] © Anne Chan, 2024
