If someone wants to start making lots of money, they tend to be told to start a business. It’s often seen as the ultimate way of earning lots of cash, relatively quickly. However, while there are some undeniable benefits of starting a business, there are also a fair few negatives. As such, it’s not always the best way to make money, and here’s why:
Large Running Costs
No matter how big or small your business is, you will have to pay running costs. These are costs that keep your company afloat and ensure you can carry on operating. The smaller the business, the smaller these costs tend to be. But, they still exist, and the money comes out of your pocket in the beginning. In fact, starting a business can land you in a lot of debt if you apply for a business loan to finance the startup process. This means you have a big fat loan to pay off, and it could take a long time before you actually pay your debt and can start earning money. There are so many other money-making ideas, such as becoming a freelance writer or starting a blog, that don’t require any startup or running costs. So, you save money and make money.
Constantly Dodging Potential Legal Issues
Business comes with a lot of baggage, you’ve got your employees, your service, your workplace, and so on. All of these things come with lots of legal issues that you’re responsible for. You must treat your employees well and respect their rights, you need to offer a product/service that doesn’t harm your customers, and you are obliged to provide a safe working environment. If any issues occur with these things, you could be liable and end up in a lawsuit. Some of the most experienced lawyers, like Benedict Morelli, are constantly caught up in legal cases surrounding businesses. Whether it may be sexual harassment cases, employee rights violations, product liability; you name it. When you don’t own a business, you haven’t got these things to worry about! Many money-making ideas can be done at home without any legal stress.
Always An Element Of Risk Involved
Starting a business always comes with an element of risk. No matter how good an idea is in theory, it could be completely different in practice. Writing a business plan relies on predictions, and you might make wrong ones. It could well be much harder to fight the competition than you thought, leaving your business with no customers, no money, and a mountain of debt. Also, let’s revert back to the second point on legal issues, they’re a risk too. You can’t predict what might happen, all it takes is one wet floor to result in a huge lawsuit against you. There are other ideas out there that can help you make money without a huge risk hanging over your head.
So, if you want to start making money, don’t assume you need to start a business. It could be a good idea for some people, but that doesn’t mean it’s always the best way to go about things.