If you find yourself in a standard nine to five job, but are dreaming of greater things, then it might be time to start out on your own. You could start your own business and have the freedom that you’re after. Being your own boss brings with it many benefits, not to mention that you get to have all of the wages for yourself and your time. However, going into a startup can be a long and tiresome process. It can mean long hours to start with, trying to get funding for your business, as well as getting stressed as you try to make it all happen. Is it going to be worth it when it could potentially be taking years off your life?
For many people that are looking to work for themselves, then that could be just the thing; create a business where you are the sole employee. When you create a lifestyle business, it means you don’t have to answer to anyone but yourself, and you can use it to pay for your lifestyle, as the name suggests. So should plenty of budding entrepreneurs actually be trying to start a lifestyle business rather than a startup? It can be a lot less stress, depending on the kind of business that you plan to go into. It can also mean working from home, eliminating the need for the cost of an office or rent for an office space. So here are several reasons why a lifestyle business might be a better choice for you, compared to a startup business.
Success in Business is Hard
The reality of business is that for every successful one, there are several (if not hundreds) of similar ones that have failed to make the grade. Of course, if you are that one that has been successful (Hello Instagram), then you’re laughing. But if you’re one of the ones that has failed, then you have wasted a lot of time, money, and energy. So unless you have a stellar business plan, going it alone and creating a lifestyle business can mean a lot less pressure and a lot less of you life lost. You only have your finances to think about, not that of your employees too. So if it doesn’t work, it only means you moving onto something else, having not spent a lot, rather than a whole team of people where lots of money has been spent and wasted.
A Startup Will Still Be a Nine to Five
Another reality of startups is that after the initial set up for the business, you have essentially set up another nine to five business. Those are the kinds of hours that your employees will work most likely, and you as the boss will be expected to work those kinds of hours too. Plus, when you get into business, there will be the day to day running of things that will sap the life out of you, as is probably happening in your current role. Yes, you’re in charge, and you can pick and choose what you do and when you work. But when it is your business, you will be expected to be there a lot to oversee things. So if you think you’re going to have more freedom with a startup, then you need to think again! A lifestyle business, on the other hand, can easily fit around your life and what you want to do. You can travel and do it, as well as work it around family commitments. You set the deadlines and the times that you will be working.
You Won’t Have To Wait Years For Profit
When you create a startup business, there are a lot of overheads. There are initial startup costs, as well as loans and money from investors, all that needs to paid back. You will have staff costs and office rental, as well as inventory and warehouse costs (depending on the type of business that you go into). But with a lifestyle business, you have very low startup costs. You might have the cost of your internet and perhaps a new computer to work from. But that is pretty much it! So once you deduct those small costs, you are taking all of your money, minus tax, as profit for yourself. So you can probably see profit coming in from your first invoice. It is pretty much a no-brainer!
The same goes for if you decide to choose a lifestyle business that you don’t even need to run from your home, like hairdressing or personal training. Travel and equipment costs will be relatively low, and then you will be making profit very quickly. Even the cost of a personal trainer course can be classed as an expense, which makes it tax deductible. So you will be making money sooner than if you go into a startup business.
You Have More Freedom
A lifestyle business offers you so much more freedom to enjoy life than a startup business would. You can travel and work from your laptop if it is that style of business. If it is a home-based business, then it allows you freedom and flexibility to choose when you work. If you need a day off to go through certain things or run particular errands, then you could do just that (or take the day off and work in the evening). It allows for a much greater work and life balance, which isn’t that what we all want after all?
When you work in a startup, then it really does eliminate the chance to travel, to start with at least. But even then, when you have a team of colleagues, you can’t just head off on a working vacation anytime you’d like to. A startup does come with more responsibility. And unfortunately, that responsibility does take away some flexibility and freedom. What would you rather choose?
Stress Will Be Reduced
Stress, for any entrepreneur, will never go away. There are always things to be worrying about and wondering how certain things will pan out and if you’ll get that contract that you’re desperate for. However, it will be reduced quite significantly if you take the option to run a lifestyle business. When you have a team added into the mix, it does increase your stress. Even if it just the day to do things that stress you, rather than about making repayments or meeting with investors. You won’t have the stress of others when you’re the one running a lifestyle business. And let’s be honest, that can be much easier to deal with than if you’re faced with a team of people all wondering why they haven’t been paid on time.
You’ll Increase Your Skills
When you are the only person in charge of your lifestyle business, then you will wear a number of hats or play a certain number of roles. Not only are you the owner, but you are the accountant, the payroll team, the human resources department, the marketing, and the sales team. All of this can be time-consuming. But it does give you the chance to improve your skills and to become more of an expert in all of those areas. They will all stand you in good stead for the future. Being a ‘jack of all trades’ doesn’t have to be a negative thing!
When you’re a lifestyle business owner, you can always use freelancers to help you get some work done, if your load becomes too much. The great thing about freelancers is that they aren’t contractually tied to you. Once they have done the things you need them to, there is no expectation of more work. So don’t have the pressure of employees in the same way. So freelancers can be used as and when, and there is no need to pay their sick days or maternity leave!
Are all startups best avoided? I don’t think so. Likewise, all lifestyle businesses aren’t all about sitting on the beach with a laptop. However, there are many benefits to being a lifestyle business owner that often get overlooked. So it just depends on what you want in life. If you’d rather have some more freedoms and earn a comfortable wage, then a lifestyle business could be for you. It can be much more flexible for you as your personal life and family situations change too. Which is probably why we have seen a number of ‘mompreneurs’ rise as many women want to carry on, or start, a lifestyle business after becoming a mother. It is definitely a plus if that could be on the cards for you.
A startup business does have potential to earn more money, but it does take away some of the freedoms of everyday life. So weigh up the options and decide what will work best for you. There is that age old saying that no one is going to say that they wished they worked more in the office on their deathbed. So that is definitely something to think about!
