Last week, we shared some of the pros of entrepreneurship. Today, we have to bring you back down to earth a little. Let’s share some of the cons of entrepreneurship.
Con of Entrepreneurship #1: A Heavy Workload and Long Hours
Since entrepreneurs wear many hats in their small business, that can mean a heavy workload and longer hours than a traditional employee. Depending on your organizational and time management skills, these business-related tasks can sometimes lead to less personal time for family, or fewer vacations. If you don’t have enough employees to handle day-to-day operations of the business, it can be difficult to arrange time for vacations, sick leave, or maternity leave.
Con of Entrepreneurship #2: Isolation
If you work alone as an entrepreneur, you are free from workplace gossip or hierarchy — but it can also mean a feeling of isolation. When you don’t have other employees or colleagues, the work day can consist of sitting behind a desk or computer screen for many hours without any social contact. Without short chats at the office coffeemaker you may feel secluded and lonely. Many of us experienced this for the first time during the pandemic, but it’s a concern for many entrepreneurs even in regular times.
Con of Entrepreneurship #3: An Unpredictable Income and Potential for Loss
Being an entrepreneur means taking a huge leap of faith: giving up a steady income. Running your own business, especially in the early start-up stages, can mean that your income becomes unpredictable and unreliable. This can make things difficult when trying to plan for the future or saving for a big purchase. You may need to take a raincheque on that Ferrari.
Con of Entrepreneurship #4: Loss of Structure
Moving away from an organization to begin your own business also involves moving away from an organized and hierarchical structure. Although this may seem appealing to some, it can create confusion and disorganization particularly in the initial stages when things are still unfamiliar. Many entrepreneurs realize that there’s a learning curve when figuring out how certain high-level elements work, things that someone else used to handle in their old employee jobs.
Con of Entrepreneurship #5: Discipline, Self-direction and Risk-taking
You may love not having a supervisor present to make sure you’re doing everything properly and meeting deadlines. But without this, good self-discipline and focus is all the more important. It’s all on you to keep yourself on track and making important, often time-based decisions.
Con of Entrepreneurship #6: Paperwork and Administrative Duties
Moving away from an organization to start your own business may also mean losing your administrative support, your accountant and your financial analyst. If you’re running a carpentry business, there’s more to think about than crafting a perfect chair. You also have to deal with billing, invoices, orders, suppliers and other clerical and administrative duties. Without experience in this field, these tasks can be daunting and are often put off, to the detriment of the business.
Con of Entrepreneurship #7: Stress and Pressure to Succeed
Because your reputation and your income are on the line, the pressure to make your business a success can be incredibly intense. Stress management skills are very important when dealing with hurdles and roadblocks, small and large. Look for resources to help you cope so you don’t burn out.
Con of Entrepreneurship #8: Responsibility and Accountability
The feeling of accountability for your small business can be intensely rewarding, but it also comes with risk. With your name behind the business, your personal reputation is on the line. Always. You are the public face of your business and everything you say or do can have an effect no matter how small or seemingly harmless.
As you can see, entrepreneurship does have its difficult moments and tough considerations. But don’t fret! Small business education goes a long way in preparing you to deal with all aspects of entrepreneurship.