Is it really a good idea to start your own business?

Admin

Administrator
Moderator
#1
The pros are
0. it can allow you to make large amounts of money
1. easier to tax-evade

But now let's go over the cons
2. legal landmines, this is impossible to completely eliminate, other people will take advantage of you if you are unwilling to risk everything in a court battle, this is kinda difficult to avoid.
3. having a business will require you do be consistent in making good decisions, one bad move can cost you everything.
4. you cannot just go home from work and forget about it, you might have to put in long work sessions to get everything done. You also cannot push yourself too hard since then you risk your mental health.
5. a lot of startups will simply fail, maybe 60%
6. even if you can get your company going it will often not make you rich, usually it's less than what you could have made just having a job.

Issue 2 can be partly mitigated by having a company form where you are not legally liable more than the amount of money you put in (5000$ minimum in Sweden), this however will not fully protect you from losing everything, some people are jailed for tax-fraud, Sweden earlier had a system where you could be boned fined and jailed but had to stop with that due to eu law against double punishment.

A lot of people with their own businesses just end up working for companies but with zero job security, the main benefit with this is that you can often take out a far higher salary than the typical employee when you are actually hired for some job. While you technically have your own business here it's in practice just a more flexible form of employement, good if you like changing job a lot.
 

Admin

Administrator
Moderator
#2
"Be your own boss"
There are 2 big issues with this
7. most people need someone to boss them around to be productive.
8. you are not actually your own boss, you need to cater to your customers and deliver something they want, you cannot just rely on marketing. Even if you have a product company you still need to subject yourself to various regulations, you cannot just do what you want.
 

Admin

Administrator
Moderator
#3
Alternatives
Cryptocurrency trading used to be legitimate in terms of getting rich but that's far more difficult now, that is however something that may become an option again in the future.

Poker is really difficult but you can at least limit your risk by having proper bankroll management.

Being successful as a writer is really difficult but at least you only risk your time.

Being a youtuber is an option but unfortunately you then need to deal with the de-platforming and demonetizing nightmare.
 
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