In an earlier post we discussed different benefits of staring your own consulting business. But in order to make a final decision about it, you should also be aware of the disadvantages for starting a consulting business. Given below are 5 most important disadvantages that might be associated with this.
1. Unsteady Monthly Income – Most of the day jobs provide a steady income but when you venture into running your own business, there are not solid guarantees. Even with the presence of steady and loyal clients, there is still danger that they will cut their budgets temporarily or permanently.
2. Responsibility for Benefits – most of the employers these days provide certain employee benefits like health insurance or insurance at reduced rates. They also contribute certain sum to social security and deduct taxes before paying you. If you are the owner of your own business, you will have to take care of such expenses on your own.
3. Doing Unfun Part too – If you start your own business, you should be clear that you are yourself responsible for diverse tasks like maintaining books of accounts, following a schedule, answering emails and phone calls and many other undesirable routine tasks. While you can always outsource these things, but for that you should already by having enough money to support them.
4. No Work, No Pay – It is quite simple. As a business owner of your own, there are notsick leaves, personal time, or vacation time for you. If you are looking for a break, you will not get a paid break so there should be enough income already available for compensating it.
5. Self Motivation – While you will feel less stressful when you see that there is no boss breathing down your neck but it might also reduce your productivity. Plus if you are doing work from home, you will note that there are many distractions which are generally not there at office. The key to success is to learn how to remain updated on the task yourself.