There are only two ways to make a living in this world – working for someone else or working for yourself.
If you’re an employee, unless something serious goes wrong, you have a reasonable expectation of stability, certainty and knowledge of where your next paycheck is coming from. Depending on your employer, you may have good benefits and potential to advance in your career. The risk-reward ratio of a salaried job is low to medium and suits the majority of people just fine. But, as the saying goes, nobody ever got rich working for a salary.
As a self-employed person or small-business owner, however, you are entirely responsible for your own income – and, if you have employees, for their income, too. There’s always the chance that you will be wildly successful, but that possibility is tempered by the very real risk of failure, sudden changes in the market, and a host of other risks. The risk-reward ratio is high and, for a small percentage of people, worth it.
Accept that you will undergo stress
If you’re considering working for yourself or starting your own company because you’re tired of working long hours, many rounds of golf with clients, or getting up at whatever time of day you feel like it, prepare yourself for failure right now. Because, as any successful small-business owner will tell you, it’s going to take a massive amount of very hard work, long hours, and the ever-present risk of losing it all. It can be a very high-stress venture and knowing how to deal with that risk could make the difference between pushing through the lean times and packing it all in for a nice, stable salary. Your first step is to accept the fact that you are going to experience stress and prepare yourself to deal with it.
Focus on what’s in front of you
It’s always a good idea to have a plan A, B, and C in place to deal with foreseeable contingencies; however, it’s impossible to foresee every scenario, so don’t spend all your time planning for what might go wrong. Have one or maybe two backup plans in place, then focus on what you’re trying to achieve – after all, the cost of reward is risk. Deal with each problem as it arises – don’t spend fruitless time worrying about what may happen. At the same time, don’t put off dealing with an issue for too long; both of these habits will cause you far too much unnecessary stress.
Have a release valve
For some self-employed people it’s a daily walk with the dog, for others it’s a weekly art class. Whatever it is, everyone, no matter how busy, needs time away from work to allow the mind to shut off, focus on other things and remember that there really is more to life than work. Unfortunately, for too many people that ends up being the instant gratification of alcohol or drugs, so take the time to find something worthwhile. Before you even choose the name of your new company, find something that can serve as your release valve and stick with it – you’ll thank yourself later for it!