8 Signs You’re Not Ready to Freelance or Start Your Own Business
Written by
Terence Loose
Edited by
Cynthia Measom
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From the confines of a cubicle, setting out on your own to freelance or starting your own business to make money can seem like a dream. But without proper planning, the right attitude and a strong sense of dedication and self-discipline, entrepreneurship can quickly become a nightmare.
So before marching into your boss’s office and having a “Braveheart” moment, make sure you don’t have any of these eight danger signs.
You Like a Stable Paycheck
If you enjoy knowing exactly how much you’ll make every month, and count on employer-based healthcare and other benefits, going into business for yourself could be more than you’re willing to take on. As a freelancer or business owner, you will be solely responsible for a host of new expenses, from office supplies and health insurance to 100% of your FICA payments. Make sure you factor in these costs.
You Can’t Handle Risk
Risk-taker is a perfectly valid synonym for entrepreneur. According to the U.S. Bureau of Labor Statistics, over 20% of new businesses fail within the first year, and by year 10, only about 35% are still open. While these are better odds than the track, they’re not exactly the guarantee that gives you a good night’s sleep when your entire livelihood is on the line. So, choose to embrace risk or maybe don’t play.
You Haven’t Researched the Market
You could have the greatest idea since the wheel, but if there is no current market for it, or if you don’t know how to reach that market, you might as well be selling horse buggy whips. According to Forbes Advisor, 4% of new businesses fail within five years thanks to the lack of market demand.
You Have No Business Plan
Benjamin Franklin said: “If you fail to plan, you are planning to fail.” That’s never more true than when starting a business or hanging out a freelancer’s shingle. That’s not to say you need a 900-page business plan with graphs and projections to the year 2080, but make sure you spend time researching every aspect of your proposed endeavor, from costs, time demands and challenges to reasonable estimates of market demand, potential revenue and profits.
You Hate Marketing Yourself
Starting a new business or offering freelance services is no time to be shy. Say what you will about them, but Steve Jobs, Martha Stewart, Sir Richard Branson, Mark Zuckerberg … these are not shrinking violets. They believed in themselves (at times a little too much), believed in their products and services and never missed an opportunity to promote them. So this is one time it might be OK to check your humility at the door.
You’re Not Willing To Work Long Hours
If you’re starting a small business with visions of more freedom and less work, you might want to keep your day job. A study by Fundera, a small business information resource, found that 70% of small business owners work more than 40 hours per week, while 19% work more than 60 hours per week. So yeah, it’s still work.
You Don’t Understand Business Financials
Again, we’re not saying you need an MBA, but if you don’t have at least a basic understanding of how to run your business’s financial backend, it could spell disaster. According to SmallBizGenius.net, 82% of failed businesses sank because of cash flow problems. The first several months of freelancing or a new business venture are often cash-strapped, so every decision can make a major impact on your bottom line.
You Lack Self-Discipline
When you’re working for “the man,” the man tells you what has to get done, and by when. It’s pretty cut and dried when you can play hooky or go on vacation. Not so when you are your own boss. If you lack strong self-discipline, suddenly the “boss” is a lot more lenient with the deadlines and work schedule. And that’s a recipe for disaster in the freelancing and entrepreneur world.
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