Deciding Between Operating Your Own Business Or Working A Business Opportunity
Working a 9-to-5 job can have many downsides. First, there is the issue of actually going to the job. Who wants to spend an hour or so stuck in traffic? Next, there is the issue of office politics – the constant feeling that you have to bow down to your superiors. Third, there are the costs. When you work outside the home, you have to pay for gas, daycare and clothing. All of these problems can be bypassed if you decide to operate your own business or take advantage of a business opportunity. However, it is important to note that these two are not the same. This article will discuss some of the major differences evident in owning your own business versus working a business opportunity, so you can be in a better position to decide which one is right for you.
One of the most glaring difference between operating your own business and working a business opportunity is access to work, (assuming the business opportunity is not sales-based). When you operate your own business, you have to find clients and work yourself. So you become laden down with two jobs: marketing yourself and trying to do the work as it comes in. A business opportunity that is not sales-based will already provide a stream of work for you. So, you will only have to concentrate on actually doing the work, making your life significantly easier.
Another difference between operating your own business and working a business opportunity is the filling out of a 1099. This is a tax form that allows you to file with the IRS during tax season. At the end of the year, you will receive this form from the company issuing your business opportunity. It will contain the name of your company, the monies you earned from them and any other information that might be needed by the IRS. This makes the tax process more convenient since you know exactly the profits you made. However, when you are in business for yourself, you have to keep track of all of this on your own. This is easy if you get just a few clients here and there, but what if you are dealing with hundreds at one time? Even with the best accounting software it is possible to make a mistake, which could make you a flag for an audit.
However, on the upside, operating your own business offers significantly more freedom than a business opportunity. While you will still have to deal with grumpy clients, at least you don’t have a ‘boss’ hovering over you like you do with business opportunities that are not sales-based. And of the business opportunities that are sales-based, you are restricted by commissions. If you sell merchandise yourself, you can keep more of your profit. In fact, money is also an issue with business opportunities that are not sales-based, since companies tend to charge as minimal as they can so they are able to make more of a profit.
In conclusion, operating a business and working a business opportunity have several differences. However, they do have at least one major similarity: offering significantly more freedom for the job seeker. So, it’s just a matter of determining which one will work better for your goals and individual situation.