Entrepreneurship- Be your own Boss
Updated: Jul 21, 2020
Everyone dreams of being their own boss, working for themselves and using their skills for climbing the ladder of success instead of fulfilling someone else’s dreams. When you are a person who likes to work for yourself, you never settle for anything that is less than perfect for you and you live each day to the fullest. Entrepreneurship is one way to make that happen.
What is Self-employment?
According to the Merriam-Webster dictionary, Self-employment is “the state of working for oneself as a freelance or the owner of a business rather than for an employer” Self-employment is a little different than our conservative thinking of 9-5 jobs because instead of providing service for a company you are creating employment for others.
Funding is always crucial no matter what you do. Various ways you can run or start your business is from your own savings or finding partners or shareholders to invest. Another way is to apply for self-employed loans; for people who are just getting started or want to expand their business, this can be a ray of hope.
Loans or debt are often looked upon as something bad, but if you know what you are doing loans are going to be a huge help. Technically speaking you just have to make sure that the borrowing cost stays lower than your returns. Maybe it's the reason why President Trump brags about being the ‘King of Debt’ because he and other entrepreneurs have mastered the art of borrowing. In an inflationary environment taking a loan or borrowing is always going to be beneficial because the debtors will be repaying creditors with dollars that are worthless in terms of purchasing power
Looking at the 90% failure rate of startups, they are always considered to be risky unless you have a sound business model. A startup is always a challenge as you would be competing with the established players. After taking a loan and with interest to pay maybe you won't be able to offer the goods or service at competitive prices. If the startups are small, they will usually fail because lack of innovations or bad management it's rarely because of lack of funding.
Expansion or Buying Machinery
Once you have a working business plan and your business is all set then you can try to expand it. Unlike startup now it is easy to make a decision. Expanding your business is not as risky as a startup because you are no more dealing with uncertainty which is a big challenge. You might want to start a new branch in a different city, or you might want to buy equipment to increase the output speed. At this point, it would make a lot of sense to take out a self-employed loan. Your risks are much lower because you are an established player in the market for the last few years and well aware of the nature of the business.
We always hear that likes of Jeff Bezos, RobertKiyosakiand other businessmen pay zero taxes and they do it legally. A normal job would put a regular income in your pocket every month, but you will have to pay taxes to the government. Now being an entrepreneur, you have the luxury to manage the taxes legally. As you are paying taxes after reporting your expenses which include your interest on your loans
For many self-employment is the wave of the future. It will give you the freedom to pursue your dreams and follow your heart. The most important step of all is to write the vision and execute it! Don't waste any more time in the idea phase. Remember, you don't have to be perfect to start, but you do have to start to be perfect!
All views expressed in this post are based on personal opinion and I would recommend consulting your financial advisor before making any serious financial decision.