Freedom Ain't Free
by Donna Maria
Time and again, budding business owners describe to me their heartfelt desire to chuck the trappings of the 9 to 5 job for the "freedom" of owing their own business. That sounds good, and who can argue with the idea of escaping the drudgery of "working for the man," coming home dead tired at 8:00pm, fixing dinner and finally settling in at midnight?
But conversations with two small business owners last week reminded me that freedom from a "regular" job is far from free. Both of these persons are professional service providers, one a graphics artist and the other an event planner. The graphics artist lamented that he spends inordinate amounts of time justifying his charges to other small business owners. It seems that many of them (who wouldn't dream of giving their products or services away) want him to do just that! The event planner mentioned to me that she was thinking of getting a Web site because there was "no overhead," so she'd be free of landlords and the expenses of monthly rent, electricity, signage, etc. Yeah ... but ... if you want a quality Web site, you have to pay a Web site designer (or do it yourself (which is also not "free")), and you have to invest some time and money getting people to actually visit your Web site instead of the bazillion other ones out there vying for their attention. Does a Web site really sound "free" of overhead?
As I work with other small businesses, especially those begun as the result of a hobby, I have observed the mentality that the "freedom" of business ownership should somehow be free from any sort of additional responsibilities. No overhead, paying less for services just because of the small business is small, etc. In reality, the pleasure of business ownership - being your own boss - is great, but it ain't free. Here's why.
1. Government Rules & Regulations. At a "9 to 5," who cares about taxes and unemployment compensation? You only pay the tax you owe and your employer goes through the trouble of giving most of it to the governmental authorities for you. If something happens to you physically or if you are laid off, you may be entitled to unemployment compensation, but before either of those things occurs, you don't really have to worry about it because your employer already has. Does your employer have certain government regulations you have to help it abide by? No problem, they've summarized all of them in a manual or on a company Intranet site so you can learn as you go. Start your own business and see that you have to do all of this research, compilation and compliance on your own, frequently with the assistance of an expert in the appropriate field (also not free).
2. That Bi-Weekly Paycheck Suddenly Ain't So Bad After All. At the "real job," you get paid the same amount each week, pretty much no matter what. If you have a slow week, complete with time to spend filing your nails, working on your dream business, chatting with friends, or whatever, that's OK because you'll still be paid the same amount as when you worked like a dog the week before. Have bills? No problem, you know exactly how much money you'll make next month so you can budget how you'll pay them off. Kiss this predictability good-bye when you get your "freedom," and be prepared for feast or famine. No two weeks are ever the same.
3. Professional Services Must Be Paid For. At the "job," if you need some help from co-workers with special areas of expertise, set up lunch and they may assist you for free. Try getting that from a fellow business owner who also has to pay their own bills. Not free anymore! Need a new Web site? Try convincing a professional designer to give you a free shopping cart or free hosting services (without nasty pop-up ads). Good luck! Need to learn the latest Microsoft program? Excellent! At your job, just sign up for free training. Start your own business and you'll have to read the 500-page manual or pay through the nose for personal instruction.
4. Assorted Sundries Must Now Be Bought & Paid For. Need a green or pink pen to sign your personal correspondence or new tri-fold brochure? No problem, just tool on over to the office supply room and grab one there. Ran out of paper at your home computer? Don't worry, just swipe a few pieces of paper from your office printer ... you'll give it back after you get your own ream of paper, right? I'm not suggesting that stealing from your employer, even if it is just a piece of paper or a pen, is OK. Of course, it's not. But you get my drift. Start your own business and suddenly, nothing's free anymore.
To be sure, I know from personal experience that there is no shortage of reasons to trade in the drudgery of your "9 to 5" for the joy and independence of entrepreneurship. Before doing so, however, consider that the "freedom of business ownership ain't free," and be prepared to run the business like a business, and not like a hobby with a tax id number.
