Thinking of Starting a Small Business? Here’s What You Should Know

October 22, 2018

If you are considering forming your own small business and going out on your own, you’re not alone. In fact, according to Forbes, there are almost 28 million active small businesses (defined as those with fewer than 500 employees) in the U.S. with an estimated 543,000 more new small businesses formed every month.

There are a number of potential benefits of being self-employed; it’s not hard to see why it is an attractive choice for so many people. It is also important to understand some of the other decisions you will need to make if you go into business for yourself. In this article, we’ll explore some of the potential opportunities and considerations so you can make a more informed decision.

Benefits of Entrepreneurship

When you start your own business, you are taking control of your future. Here are some of the many benefits small business owners can enjoy:

Career independence. Saying “goodbye” to corporate America and branching out on your own means you are in charge of your career. You’ll get to establish your own schedule and manage your time. You are in charge of making decisions about how hard, when, and where you want to work. It can be incredibly empowering to have this autonomy and control.
Work/life balance. Because you are in control of your own calendar as a business owner, you are also in control of your own work/life balance. If your child, niece, or nephew has a soccer game or a concert at school, you can arrange your schedule to be there. If you’re working evenings and weekends, it’s because you’ve decided to do so to help grow your business – not because your boss said you have to put in overtime.
Do work you enjoy. Starting your own company also gives you the opportunity to go into a line of work that feeds your passions. Rather than working for someone else in a role that doesn’t really engage you, you can do work that energizes you and makes you happy.
Potentially unlimited financial rewards. When you work for yourself, you are in the unique position of being in control of your own income. When you work hard, you get to enjoy the financial rewards of that work as well as the satisfaction that comes from knowing you provided a product or service that your customer needed. Of course, nobody can ever guarantee that your small business will definitely be a roaring success. However, generally speaking, working hard as a small business owner and doing something you believe in and that you find rewarding can be financially rewarding.
Community engagement. Whether or not you hire staff, opening your own business can have a positive impact on your local community. You’ll likely be offering your products and services to your neighbors, friends, and family, in addition to the general public. If you hire staff, you’ll also be part of the employment market in your geographic area, creating jobs.

Potential Considerations

Before you jump into starting your own business, it is also important to evaluate whether you’re ready to take that leap. Here are some important factors to consider:

Start-up capital. Do you have adequate funds to start the type of business you are considering? The funds needed to start different types of businesses can vary widely. When you’re determining what is adequate, include the costs of purchasing or leasing space and the improvement costs that come with it, purchasing furniture and equipment, obtaining any required licenses and permits, advertising and marketing costs, and being able to meet regular expenses in the early months of your business when cash flow may be limited.
Be prepared to work. While being your own boss is freeing and exciting, starting your own business will likely take a lot of hard work on your part, at least initially. It can take time to establish yourself in your community and build a customer base. Most entrepreneurs instinctively understand this and are motivated to put in the time and effort required to launch their new endeavors.
Tax considerations. When you are self-employed, you will also be responsible for business-related taxes. Your obligations will differ somewhat, depending on how your company is structured. In general, though, you should plan to keep good records of all business-related expenses so you can take full advantage of all available tax breaks and incentives for small business owners.
Unpredictable income. While your income will likely be unpredictable in the beginning, many entrepreneurs find the payoff later is well worth that initial unpredictability. The goal for most entrepreneurs is to steadily grow revenues over time so that income earned as self-employed business owners exceeds what they were making working for others.

Proven Small Business Opportunities Exist

Taking control of your own career may be just the change you need. While you may find yourself working harder than you ever have before, at least initially, you’re working for yourself and feeding your own future.

One unique opportunity you may not have considered is being an Exclusive Agent for Allstate. In this exciting role, you will be your own boss as you run your own Allstate Agency and help customers protect what’s most important to them. Allstate Exclusive Agents never pay franchise or royalty fees but benefit from national resources and support, as well as from the positive brand awareness Allstate has created.

Owning your own insurance agency can be rewarding, both personally and professionally. Are you ready to learn more? Visit www.allstateagent.com or chat with an Allstate recruiter today at 877.711.1015.

Sources

https://www.forbes.com/sites/jasonnazar/2013/09/09/16-surprising-statistics-about-small-businesses/#15e042475ec8
https://smallbusiness.chron.com/pros-cons-selfemployment-40691.html
https://www.huffingtonpost.com/erica-gellerman/5-benefits-of-self-employ_1_b_8115936.html
https://www.sba.gov/learning-center
https://www.lifehack.org/articles/work/10-benefits-being-self-employed.html

Subject to all terms and conditions as outlined in the Allstate R3001 Exclusive Agency Agreement and Exclusive Agency program materials. Allstate agents are not franchisees; rather, they are exclusive agent independent contractors and are not employed by Allstate. Allstate is an Equal Opportunity Company. Allstate Insurance Company, 2775 Sanders Road, Northbrook, IL 60062. In New Jersey, Allstate New Jersey Insurance Company, Bridgewater, NJ. ©2019 Allstate Insurance Co.