How to be an entrepreneur: the pros and cons of being an entrepreneur

Data from the QuickBooks Entrepreneurship Report suggests that 25% of Australians are actively considering starting a new business or side hustle, or turning an existing side hustle into a business. With so many Aussies thinking about taking the leap into entrepreneurship, we put together this guide to provide a clear path to achieving your goals.

In this article, we’ll cover how to be an entrepreneur and discuss the advantages and disadvantages of being an entrepreneur, as well as the tools that entrepreneurs can benefit from.

How to be an entrepreneur

There are several ways to start your entrepreneurship journey and become an entrepreneur. Let’s take a look at how you can become an entrepreneur:

• Education, training and upskilling: Obtain a recognised certification or licence in your relevant field to start your own business. Join short courses and download useful resources such as the QuickBooks business toolkit to help you get started.
• Planning your business: Writing a business plan is essential for planning out various aspects of your business. You can write a solid business plan in 10 steps to gain clarity on your entrepreneurial venture.
• Start a business at home: With the increasing availability of remote jobs starting a business from home is becoming a feasible option for many aspiring entrepreneurs. Read our article on how to start a business at home to find out the steps involved.
• Become self-employed: You can register as a self-employed sole trader and start your own business. Read our guide on how to successfully build your self-employed business.

If you’re not sure where to start your entrepreneurial venture, read our 64 small business ideas to get inspired. To learn more about starting on your entrepreneurship journey, read our guide on how to start a business in 15 steps.

The pros and cons of being an entrepreneur

As with any business, there are pros and cons of being an entrepreneur. Whether you want to start a side hustle, go freelance or launch your own business, there are several pros and cons to being an entrepreneur – let’s take a look.

Pros of being an entrepreneur

Having your own business comes with many rewards. Let’s take a look at some of the advantages of being an entrepreneur.

Greater Freedom

There’s no denying that one of the best parts of being an entrepreneur is the complete freedom you have to do your own thing. No more bosses to report to, or managers peering over your shoulder – now you’ve gone from the bottom all the way to the top. You are the boss.

Increased Flexibility

43% of Australians cite flexibility over when and where they work as a motivator for starting their own business. Your commute could be as simple as walking to the couch or taking a stroll to the local coffee shop. Entrepreneurs have the flexibility of hybrid working - working from an office, at home, or on the go. Read our 6 tips on how to keep your data safe on a hybrid working schedule.

Control

Many budding entrepreneurs value control with 42% of Australians citing being their own boss as a motivator. Getting your own venture off the ground requires heavy lifting but at the end of the day, it’s your dream and you are in control of making it happen. From setting your own pricing strategies to choosing your own clients, entrepreneurs can control all aspects of their business. Having influence over the direction of the company is one of the most exciting parts of being an entrepreneur.

Profits

Instead of making others richer, now your profits can slide right into your own pocket. This means each business's success becomes your success, and as your business grows, so does your potential income. This can be incredibly motivating for many new entrepreneurs on the path to success.

Cons of being an entrepreneur

While being an entrepreneur and bringing your business to life is rewarding, it can be difficult and stressful. Like every business, there are disadvantages of being an entrepreneur. Let’s take a look at some of the drawbacks of being an entrepreneur.

Startup Costs

The QuickBooks Entrepreneurship Report shows that a lack of savings or startup capital is the single largest factor holding Australians back from starting their own business. The majority of respondents believed they’d need between $5,000 and $49,000 to get their new business up and running. Without access to personal savings or other credit lines, getting your venture off the ground and keeping it afloat in the start up phase can become very difficult.

Find out more information on funding available to startups to understand your financing options

Increased Responsibility

Not only is the future of your business in your hands but so is your next paycheck. Moving away from a salaried job to an unstable income is hard. There is great sacrifice that comes from starting your own business, and while the payoff may be worth it, carrying the weight of responsibility can be difficult at first.

Increased Risk

As the business owner, you will take on much of the risk associated with starting a new venture. This means that instead of your employer taking the fall, you’re often risking your savings, time and effort to get your business off the ground. Read our article on the 5 mistakes to avoid when launching a startup to help you prepare and minimise risks that many entrepreneurs face.

Another way to minimise risk is to take out small business insurance. Familiarise yourself with the different types and cost of small business insurance to see how it can help protect your business.

Increased Workload

It takes serious hustle to get a new business up and running, and for the most part, you’ll be doing all the grunt work – especially in the early stages. All the heavy lifting can be hard for one person to manage. While it can be an exciting time, full of possibilities, it can also be exhausting. Fortunately, there are many great workplace automation tools and apps to streamline your business that can reduce your workload as an entrepreneur.

Limitations

The idea of running your own business can be very different from reality. From late nights to lonely weekends, being an entrepreneur is not without its challenges. You can also find it quite limiting in the early stages, without the funding of a big name or well-established business behind you.

As an entrepreneur, you need to be across all aspects of your business. Without formal training running a business can be hard. However, QuickBooks Resource Centre provides a wealth of knowledge for entrepreneurs and small business owners to help you with starting a business, running a business and growing a business.

Tools to help you become an entrepreneur

While being an entrepreneur is hard, you’re not alone - tools such as accounting software for sole traders, freelancers and contractors like QuickBooks can simplify your day to day business operations as an entrepreneur including:

• Accounting
• Invoicing
• Financial reporting
• Tracking inventory

QuickBooks is great for self-employed business owners as it comes with a free mobile accounting app allowing busy entrepreneurs to manage their finances and access accounting software on the go, straight from their mobile device. This can help entrepreneurs save time to focus on scaling their venture.

Join a free 30-day trial to see how QuickBooks accounting software for self-employed people can help sole-traders, freelancers, contractors and entrepreneurs.