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Many people will give you statistics about the risks involved with starting your own business.
However, when you look at the issue more closely, it becomes clear that there are also a lot of financial benefits involved with operating your own company.
The most important ones include building the assets within yourself.
You are a valuable commodity (a financial tool, if you will), and you increase your net worth on a daily basis when you go into business for yourself.
But first, you need to be aware that operating a business can be rather difficult at times. It is also important to realize that it does not make financial sense for everybody.
However, if you have enough determination, then there are many financial advantages waiting for you.
Creating your own company is a daring thing to do and will take you out of your comfort zone. If this sort of thing seems exciting to you, then why wait any longer?
You are obviously ready to make a move and become the leader of your new business endeavor.
It involves an enormous amount of work as well as a large number of risks, but the possibilities for reaping financial rewards are huge.
1. Investing in Yourself as an Asset
As mentioned earlier, when you develop your own business, you are essentially investing in yourself.
Even though you may be investing in property, equipment, and inventory, you are creating more opportunity for you to develop the skills necessary to operate your own business endeavors both more efficiently and effectively.
What you must always realize is that you are your own ultimate asset and there is no better thing for you to gain than experience.
This includes money itself. The reason for this is that you must know how to correctly handle your assets, or you could easily lose everything you have if you do not have the knowledge or experience necessary to manage your finances properly.
This is why it is so important that you develop life-long skills by gaining more priceless experience every day.
As this expertise adds up, you become a more expensive asset, and your ability to accumulate more wealth is increased exponentially. This is the greatest financial benefit of all.
2. Having the Ability to Work From Home
One of the most obvious and practical financial benefits that you gain immediately when going into business for yourself is that you have the option to work from home.
It’s also important to realize that operating your business from your home gives you a flexibility that is hard to acquire when you have to worry about costs for an office building.
The costs of commercial properties include the following items:
- office supplies
Looking at the above list, you can see that the expenses involved with operating a commercial property are numerous.
They can add up to a staggering amount of your hard-earned capital being consumed in just the day-to-day functions of your company.
When these expenses are eliminated from your budget, you free up a lot of extra funds for other areas of your business operations.
These reductions in fixed costs allow for you to be flexible when you have to make various decisions about pricing and discounts.
For instance, you can either offer more favorable quotes or keep the same prices as your competition. Either way, you will have a healthier bottom line.
3. Earn as Much Income as You Can
Another financial benefit of owning your own business is the ability to make unlimited amounts of income. Unlike most other jobs, your salary is not capped. You control how much money you make.
Do you want a raise? If so, then work harder, find more business opportunities, or both. When you own your own company, you get to keep everything you earn.
What this means is that your potential for greater income is only limited by your work ethic and business ideas.
You get paid for work situations you create, and not for merely showing up and swiping your employee card through the reader of a time clock.
4. No Commute Time Means More Time for Work
Most Americans spend somewhere between 40 to 60 minutes every day going to work.
Not having to drive to work saves you money by avoiding the additional costs that accumulate when you are constantly driving your car every day. These extra costs include oil, gas, tires, and engine repair.
However, the best financial benefit you gain from not having to go to another location every day means that you have more time for revenue-producing activities.
You can get more papers written, more research done, more calls to clients made, and more time devoted to coming up with new ways to produce revenue.
5. Make More Money With More Than One Income Stream
As an owner, you can develop lots of ways to produce capital.
This aspect of going into business for yourself is definitely one of the major reasons why many individuals succeed with these sorts of endeavors.
By having your income coming from several different places, you can develop a peace of mind about your future situation, which is something you need to have in abundance if you want to continue making wealth over the long term.
6. You Are Free to Test Out Your Own Business Ideas
More than half of all the new companies out there don’t make it, and if you put lots of cash into office expenses as well as other sorts of fixed costs, your failed start up business might turn out to be a gigantic expense.
However, working from home lets you to try out new concepts without a phenomenal amount of overhead.
By doing this, you can calculate the viability of your various business ideas before investing a large amount of capital.
Being your own boss thing is pretty amazing. However, you need to realize that your customers still tell you what they want you to do.
The good news is that when you run your own company, you do not have to do what they tell you to do. You always have choices, and you are always the one who gets to make the final decisions about anything.
Entrepreneurs are usually free spirits and do not like to bother with red tape.
Instead of waiting for approval or sitting around waiting for the formal guidelines to be written about a procedure or a project, owners of small businesses love to get things done. This way more overall progress can be made in a shorter period of time.
When this type of mindset is applied to many aspects of a company’s operating procedures, innovative solutions that tend to save time and money are far more likely to occur.
7. You Keep Everything
Another important thing to realize is that when you work for a company and discover a new miraculous idea, you will not be the owner of that idea.
Even though your employer may make sure you are compensated for your new invention, the major profits will go to the company.
Now suppose you make this discovery while you are working for yourself. In this scenario, you get to keep the all of the profits.
Now it is usually somewhat more complicated, but one thing is for certain, and that is you will definitely get greater returns (especially in the long run) for any sort of new invention you create when you are working for yourself.
8. Networking Opportunities
Entrepreneurs thrive by having more opportunities to connect and interact with others.
There are many financial advantages you can access more easily when you have large circles of friends and acquaintances.
In today’s world of social media, the ability to network with thousands of individuals on a global scale is a reality that allows you to have a potential for new financial opportunities that used to be unthinkable.
More contacts means more business, and more business means more chances to earn even more money.
You can also reach out for advice and assistance at any time if you ever get stuck in a bad predicament. When you are in cyberspace, you are never alone.
However, when you are online and working for someone else, you are limited with what you say and do.
These limitations do not exist when you own your own business. Your cyber presence is your creation, and this means you can contact and interact with anybody in any way you wish.
9. You Can Sell Your Business
Another thing you should consider is that when you own your own company, you may have an opportunity to sell it when you are ready to do something different.
Your business could sell for a lot of money, and this will offer you a chance to collect a huge windfall.
A thick infusion of fresh capital can open up a wide variety of possibilities by giving you the funds needed to invest in other businesses, corporate bonds, or equities, just to name a few. You might even wish to take a vacation for a few months or maybe a year or more in order to let your head clear, so you can better decide what path you would like to pursue next.
10. You Have Many Tax Deductions
Yet another financial advantage of starting a business is tax deductions.
There are a wide variety of wonderful adventures you can experience more easily because they will count as deductions on your taxes. This includes travel, conferences, and events.
This means that you open the door to many new things you might never have been able to afford to do in the past. However, you need to realize that you still have to spend money to do these things.
There are many lucrative tax benefits of operating a business from your home.
If you are in a situation that qualifies, you may be able to deduct a certain amount of your mortgage interest, property taxes, repairs, and utilities.
In order to qualify for these deductions, your home office must be your primary place of business, and you may only deduct the portions of your expenses that are related to your business.
Beginning your own business takes money, and it could take time before you are able to earn a profit; however, you can take advantage of certain tax breaks right away.
There are many government programs that support entrepreneurship and will reward these sorts of endeavors with tax incentives.
By working with an accountant, you can make sure you are setting up your company in a manner that will let you to get the most out of these types of benefits.
Here is a list of common tax deductions for owners of small businesses:
- Meals – If you are traveling for business purposes or having a meeting with a client, your meal counts as deduction. Usually, you can deduct half of the cost of your meals.
- Travel – Going to and from work related events provides another deduction. You can deduct your travel expenses, such as hotels, rental cars, taxis, and airline tickets.
- Transportation – Whenever you make use of your car to conduct business, you can write off these trips as deductions. The standard mileage deduction is usually the easiest way to do this.
- Entertainment – Half of the entertainment expenses for a client are deductible as long as you do business just before, during, or immediately after an entertainment event.
- Home Office – A room in your house used just for business purposes can be claimed as a deduction. Just make sure this room is used specifically for work.
- Internet and Phone – You may deduct the business portion of your internet and phone bills.
- Health Insurance – Your health insurance premiums, including the premiums for your family, are deductible.
11. You May Lose Clients, But You’ll Never Lose Your Job
Many individuals are afraid of losing a client. While this is a legitimate concern of any small business owner, it is not nearly as severe as losing your job.
This is a major financial advantage that really makes owning your own business worthwhile.
Let’s say that you lose your best client. You’ve still got other customers and can go out and find more. Who knows, maybe you’ll find a better client in a few weeks.
You also have the freedom of not having to do business with someone you don’t like. When you own your own business, the customer is not always right. You are.
A steady paycheck is not always safer than running your own business. There are people who get laid off, and they have absolutely no control over when this might happen.
If you are lucky, you may get some kind of warning, but you could also get blindsided.
Imagine having a paycheck and suddenly losing it. What if you have to deal with an emergency right after you lose your job.
Unless you have a savings account with a lot of money in it, you could be facing some seriously hard times.
12. Financial Benefits for Women
Having the ability to work at night or in the morning is perfect for women who have to take care of children.
Email and smartphones let you to stay in contact with your clients at any time during the night or day. Different geographical areas and time zones do not matter because you can reach out all over the world.
For most women, running your own business will let you have the sort of lifestyle that is required to raise your family and have a professional career.
You should also realize that there are many programs that are given to businesses started by women. So if you are a woman, it might be in your best financial interest to look into these opportunities.
13. You Can Achieve Financial Independence.
The main reason why so many people start a business is because they have always dreamed of of having financial prosperity that allows you to have a comfortable lifestyle.
Although it may take a while, the long term goal of achieving true financial freedom gives many people the courage and strength they need in order to make their dreams come true.
With continual determination and lots of hard work, there is no limit on how lucrative your company may be. As long as you have the will to get through the hard times, you will eventually succeed.
14. You Are in Control of Your Life
Even if you have not gained financial independence, starting your own company can immediately give you a flexible lifestyle, so you do not have the feeling like you are constantly running in circles on some giant hamster wheel in a cage.
You are free to schedule meetings around your personal schedule or work in the middle of the night.
15. You Create Your Own Reality
Even though you still have to do a lot of hard work, there is nobody continually looking over your shoulder.
You do not have to do things the way the others want you to do them. You can do everything you need to do in whatever way that you deem fit.
The rules are yours to write, and the sky is the limit when you get to call the shots and be your own boss.
You give the world a service or product that is a child of your vision. Your ideas are the standard, and you are not a slave to the ideologies of others.
You probably have a laundry list of the many things that you would like to see changed in the business world.
By being your own boss, you have this power to change the things within your company.
If your ideas are truly groundbreaking, then others will quickly begin doing the things that you are doing that make your business better.
16. Prestige Leads to Financial Advantages
By being the leader in charge of your destiny, you will have more prestige among your peers as your business continues to grow and succeed.
This prestige could lead to a larger ego and even arrogance; however, it may also produce an enormous amount of financial benefits because there will be many more individuals and corporations that will begin to take you more seriously.
For instance, certain executives from powerful companies may not give you the time of day, but if you are the successful owner of a thriving new business, they may want to pay attention to you and possibly offer you some sort of partnership or arrangement that will benefit their business and yours.
You should realize that potential investors may look at your unique situation more closely once you are a respected member of your business community who enjoys a high status among other business owners and operators.
This could easily lead to more investment capital being offered to you, and this would most definitely be a financial advantage.
Running your own business is very hard to do, and now that we have examined some of the major financial advantages of having your own company.
You can see that the benefits of being your own boss far outweigh the disadvantages of having to be the employee of someone else.
However, you have to be on top of your game and do all of the things necessary to get ahead in the sometimes cruel world of today’s market.
When you consider that the greatest benefit to owning your own business is freedom, everything around you falls into place because you have a purpose.
You are a living, breathing human, and not a mindless automaton that is just going through the motions.
When you are doing business by yourself, for yourself, and as yourself, your life truly has a much greater meaning that will give you the energy you need in order to get all of your tasks done.
Having a reason for your existence also allows you to tap into the vast well of creativity that shines within your soul.
This well is overflowing with an infinite amount of energy that lets you know that dreams do come true.
You are alive, and you are powerful.