I deal with a lot of people who are thinking about starting a new business.
They're almost always enthusiastic, but there's always one thing that's a major red flag, It's the idea that life as a self-employed person is going to be easy.
I wish more people realised before they did it that owning your own business, or even just working for yourself as a sole trader, is hard work.
Here are a few reasons.
You don't get any leave. Sure, you can take as many days off as you like when you work for yourself, but you won't get paid for them.
International studies have shown business owners work 63 per cent longer than the average worker.
No sick days. If you're feeling unwell, you'll probably end up going into work.
No minimum wage. If you work 60 hours a week and only make $30,000 a year, that's your tough luck.
No pay rises. If you want to earn more, your business has to do better.
Some business owners have their houses up as security for business debt , that's more motivation to keep you working harder. While the interest is deductible the principal payments for that debt aren't.
Of course, if these were the only factors at play, no one would ever go into business, would they?
Owning your own business gives freedom - whether that's to pursue a goal, to explore a dream or to craft a work life exactly as you want it. Provided you manage it well, it should end up being worth something and pay off as an investment of your time when you come to sell the business.
But if you're thinking about starting up your own business, it pays to talk it through with someone objective who can give you a reality check or prepare you for the future. An accountant or business mentor could be a good place to start.
Jeremy Tauri is an associate at Plus Chartered Accountants.
Phone: (09) 438 3322
Fax: 438 8455
134 Bank Street, Whangarei
If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.