Is running a business for you?

Have you ever wanted to be your own boss?

Working for yourself can be exciting and rewarding. You get to make your own decisions, do things your way, and manage your work schedule.

Here are some reasons why people choose to start their own business:

They want to sell something special they believe in.
They want to help others, either to make money or to make a difference.
They want to offer something unique that no one else does.
They want to solve a problem that no one else is solving.
They believe they can earn more money than working for someone else.
They want more time for family, hobbies, or other things they enjoy.

You can use your skills in new ways

When you work for a big company, you often do just one job, but when you run your own business, you learn new things and do many different tasks

You might prefer working alone

Some people don’t enjoy working for a boss. They might want more freedom or to be listened to. Running their own business gives them more control.

It might be hard to find a job you enjoy

Sometimes people have trouble finding a job they like. Starting a business can be another way to do work that you enjoy.

Being your own boss can be fulfilling

Many people who work for themselves love it. Even though it can be hard work, it feels great to wake up and do something they care about. They often say it doesn’t feel like work at all; it is part of who they are.

Running your own business means:

you can make your own choices
you can follow your own ideas
you can build something that you’re proud of
you aren’t answerable to a boss and their priorities.

Many business owners say they could never go back to working for someone else after having worked for themselves.

Studies show that people who work for themselves are often happier than those with regular jobs. But, is running a business right for you?

But, is running a business right for you?

Starting a business can be incredibly rewarding, but it also requires hard work, commitment, and a willingness to take on financial and personal risks.

Before you begin, ask yourself these important questions.

Am I excited and full of energy about my idea?
Can I work hard for a long time, even on public holidays and weekends?
Am I okay with my business being a big part of my life?
Can I give up some of my free time?
Can I cope not being paid for days when I am sick or when I take holidays?
Can I handle the financial risks?
Do I have the skills I need to do a great job?

People who do well in business often have:

passion, commitment and dedication
strong knowledge about what they do
patience and motivation
good digital and financial skills
experience and training
the ability to work well with others.

Approximately 15 out of every 100 Australians work for themselves. That’s because it is hard work and not for everyone.

But if you live in Tasmania, the good news is that Australian Bureau of Statistics reports that small businesses here have one of the highest success rates in the country.

When people think about working for themselves, they often have big dreams, but not all of them are realistic.

This can lead to disappointment or even failure if you’re not prepared for the reality of business life.

Here are some examples of things that are not true about running a business:

I can work as much or as little as I want and still get paid a lot.
I can buy nice things and say they are for the business.
I will hire others to do all the work, but I will still make money.
I can sell my business any time for more than I spent on it.
People will think I am well off just because I work for myself.
I do not have to pay tax
If anything goes wrong, insurance will take care of everything.
The first few months might be hard, but then it will be easy.
My product is so good that people will come to me.
I do not need many skills; I will just figure it out as I go.

Running a business can be rewarding, but it’s important to know what you’re signing up for.

If you are prepared, it can be one of the best things you ever do.

Major self-employment milestones

Milestone	Description	Comment
One	Making the decision to commence self-employment	This quite often starts as an aspiration or as a response to an incident or experience with current employment. Many people reach this stage but go no further.
Two	Make the decision to either commence business from scratch or buy an existing business.	Many people will (or should) seek professional advice at this stage. After determining the effort, difficulties and risks associated with starting a business from scratch, many do not go past this stage because they either cannot find a suitable business they can buy or afford.
Three	Establishing the business (from scratch or purchased) and commencing trading.	For those who get this far, this is an exciting but anxious time. Possibilities can be seen but so can the pitfalls – have they given up a good job for something less stable that may be worse?
Four	Successfully reaching the end of the first year	Immense satisfaction from reaching this milestone. On the other hand, many people walk away from their business at this stage because they realise that self-employment is not for them.
Five	Hiring their first employee	This is often a ‘make or break’ time for the new business depending on whether the business owner has the necessary management skills and experience. At this stage the business may carry the costs of two people but not the full output of two, resulting in higher costs and more oversight required of the owner.
Six	Successfully reaching the end of the first five years	High levels of satisfaction as a result of reaching this milestone – half have not made it this far. Most businesses who reach this stage, usually have a sustainable business and continue to operate their business for at least the next 10-15 years.
Seven	Deciding on how to exit the business	This involves the options of internal or external succession, selling or closing the business and walking away. However, many business owners reach this stage as a result of exhaustion, disillusionment and/or a relationship breakdown resulting in the need to exit quickly. The best exit strategies usually take between three and five years to execute.
Eight	Exiting your business	Ideally you have been able to exit your business on your own terms but closing down and walking away is always an option.