New Small Business Ownership will impact your life, absolutely. It’s so much different than being employed. Let me show you some facts:
When you’re an employee:
*). If any problem arise at work, biggest part was company’s problem, or owner problem, and small part of it was yours because of mistakes you made.
**). Your source of income is salary
When you’re a business owner:
*). If any problem arise (just any problem whatever it is) in your business, that’s absolutely your problem, let say the problem is because of some mistakes made by one of your employee (when you occupy employee), that is still your problem.
**). Your source of income will be your own business
Any (just any) problem arise in your business is your problem that should solved by you. The problem will not go just because of you close the door. Such situation is always happened to any new small business owner.
Another change is the distinction between working time and personal time which is blur for you’re a new small business owner. There won’t be anybody complaining you if you come late to work or home early, you are the boss. But also there won’t be no concern if you always come early and home at late night no bonus, no incentive you will earn because of cleaning the mass situation at your business. Those all part of your consequences of being business owner.
Any decision you made for the business will just simple impact your personal life (you like it or not).
The impact is even greater if your business involves working out of your home. You may experience conflicts over the use of space for business or personal purposes. The distinction between your personal life and business life is even further attenuated. Even when you're at home, you're also physically at work. On the upside, there's no commute and you can eat cheaper at home.
If you live with somebody else at home (parents, wife, or friends, kids, your family), it is a good way to always consider the impact to them as well, so having serious discussion with them prior to your decision to own business will be absolutely needed. Yet, some new business owner experiences emotional and physical strain post the changing between being employee and being business owner. That could impact the people surround you.
These monetary life aspects will be seriously influenced by your decision to open your own business with no doubt:
[1]. Source of income
Source of income is the biggest difference among all. When you’re an employee you can expect a certain day (date) to receive a paycheck from the company (employer), yet you can even predict the amount. As the owner of your own small business, you'll be paid only when and if the business generates enough money. As for the amount, that will be depend on the profit you can generate from the business. Considering the expense against the revenue is the critical point, I can assure you that you will keep spending money for the business in the beginning of establishing period, while no money you can expect as a return in the same period. So, do an accurate and careful calculation for this, how you are going to handle this.
[2]. Health & Insurance Coverage
When you’re an employee, your employer provides you health insurance. But when you’re the business owner, who will provide it for you?, yourself!. If you and your family has been covered by personal health insurance premium, that is great!. Yet, when you start to have employee who assist you for the new small business establishment, then you will be likely have to provide health insurance for them. There's no pool of employees that would allow you to negotiate a more favorable rate than you can get on an individual policy. You may be able to join an association of other small businesses so you can take advantage of cheaper group insurance rates.
For those covered under employer-provided health care plans who leave to start a business, there should be an option of continuing coverage through the former employer's plan, you may need to find out the detail information.
[3]. Retirement savings
If you don't have health insurance and experience a serious injury or disease, you may be wiped out. The impact of failing to save for your retirement can be even more damaging. A small business owner has to make a conscious decision to save, outside the framework of a plan administered by someone else. That decision often can be deferred or forgotten when you feel the cash coming in has to be put right back into the business.
When you’re an employee:
*). If any problem arise at work, biggest part was company’s problem, or owner problem, and small part of it was yours because of mistakes you made.
**). Your source of income is salary
When you’re a business owner:
*). If any problem arise (just any problem whatever it is) in your business, that’s absolutely your problem, let say the problem is because of some mistakes made by one of your employee (when you occupy employee), that is still your problem.
**). Your source of income will be your own business
Any (just any) problem arise in your business is your problem that should solved by you. The problem will not go just because of you close the door. Such situation is always happened to any new small business owner.
Another change is the distinction between working time and personal time which is blur for you’re a new small business owner. There won’t be anybody complaining you if you come late to work or home early, you are the boss. But also there won’t be no concern if you always come early and home at late night no bonus, no incentive you will earn because of cleaning the mass situation at your business. Those all part of your consequences of being business owner.
Any decision you made for the business will just simple impact your personal life (you like it or not).
The impact is even greater if your business involves working out of your home. You may experience conflicts over the use of space for business or personal purposes. The distinction between your personal life and business life is even further attenuated. Even when you're at home, you're also physically at work. On the upside, there's no commute and you can eat cheaper at home.
If you live with somebody else at home (parents, wife, or friends, kids, your family), it is a good way to always consider the impact to them as well, so having serious discussion with them prior to your decision to own business will be absolutely needed. Yet, some new business owner experiences emotional and physical strain post the changing between being employee and being business owner. That could impact the people surround you.
These monetary life aspects will be seriously influenced by your decision to open your own business with no doubt:
[1]. Source of income
Source of income is the biggest difference among all. When you’re an employee you can expect a certain day (date) to receive a paycheck from the company (employer), yet you can even predict the amount. As the owner of your own small business, you'll be paid only when and if the business generates enough money. As for the amount, that will be depend on the profit you can generate from the business. Considering the expense against the revenue is the critical point, I can assure you that you will keep spending money for the business in the beginning of establishing period, while no money you can expect as a return in the same period. So, do an accurate and careful calculation for this, how you are going to handle this.
[2]. Health & Insurance Coverage
When you’re an employee, your employer provides you health insurance. But when you’re the business owner, who will provide it for you?, yourself!. If you and your family has been covered by personal health insurance premium, that is great!. Yet, when you start to have employee who assist you for the new small business establishment, then you will be likely have to provide health insurance for them. There's no pool of employees that would allow you to negotiate a more favorable rate than you can get on an individual policy. You may be able to join an association of other small businesses so you can take advantage of cheaper group insurance rates.
For those covered under employer-provided health care plans who leave to start a business, there should be an option of continuing coverage through the former employer's plan, you may need to find out the detail information.
[3]. Retirement savings
If you don't have health insurance and experience a serious injury or disease, you may be wiped out. The impact of failing to save for your retirement can be even more damaging. A small business owner has to make a conscious decision to save, outside the framework of a plan administered by someone else. That decision often can be deferred or forgotten when you feel the cash coming in has to be put right back into the business.
Are you ready for the impacts as a new small business owner?
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