What are the key positives and negatives of starting your own business?

A self-employed friend once said via Facebook, “everyone should start a business in their lifetime”.

I couldn’t disagree more. I understood his point – when things are clicking, the feeling is euphoric – but there are good reasons why so many small businesses fail.

So I’ll start with the negatives.

The hours can be brutal, particularly early on, just to stay afloat while you’re building a client base. You can become an obsessed workaholic. You can miss your kids growing up.

Some months, cash flow is negative. Money doesn’t flow in like you’d hoped, but staff, business and personal bills still need to be paid. Some months you have to chip back in to the business from your savings/mortgage. You need a BIG savings buffer.

You need to learn stuff (accounting, the law, human resources, people management, etc) that has nothing to do with working with your clients. If not, you will need to pay someone to do these things for you, which can be expensive.

But the potential benefits of successfully running your own show? Phenomenal.

If you’re hungry enough, your earnings are potentially unlimited, if you have the ability and nous to grow a business.

You can choose your hours. Nights and weekends might suit you better. You might be able to earn what you want in three days a week.

With some businesses, you potentially have a valuable asset to sell some day when you’re ready to knock off.

But the best? The feeling that you know you’re in control of your future. And it is going to be as bright as you’re prepared to work for it.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.