Why the reluctance to freelance/start a business?

[Disneefun]

I'm genuinely curious about something, and you can consider this a spinoff of the work at home scam thread. Why are people so reluctant to consider (or never even seem to consider) starting their own business or freelancing when they need extra money and want to WAH?

I see so many posts about people wanting to WAH and wanting to know if this or that is a scam, or they're willing to work crazy hours for little money at things like Cha Cha or survey taking.

Why the reluctance to start your own gig? You have much more control over the income, can do something you actually like, and have a bit more freedom with the work in general. Is it fear? Is it just that it's too much work to start your own thing? Lack of knowledge about business (which can be overcome, BTW)?

I just don't get why people are so willing to "settle" for the low paying, scammy, hard to find, WAH jobs. Most people have some skill or hobby that they can monetize, so why not do it?

It's what I did many years ago and I've never looked back, or regretted it. I just wonder why people would rather do crap work than strive to find something they genuinely enjoy and which can actually pay them a decent amount of money.

 

[carebee21]

I think the reluctance is because it's not as easy as you're making it sound.

I work from home as a writer. I generally write content for websites. I work with a couple of companies who build and develop websites for their clients and just do the writing for them. I could make more finding the clients myself and writing for them, but there's a few reasons I don't.

1. It takes time and money to find clients. You have to find people, run ads, speak with potential customers, etc. It takes a lot of time, effort and depending on how you're advertising, money.
2. You have to deal with the billing, invoicing and the potential that the client doesn't pay for the work.
3. I like the stability that comes along with working for someone else. I pretty much know I'm going to get 30 hours of work a week at x amount per hour. If I want/need extra work, I can usually get it. Whereas if I'm on my own, work tends to come in spurts. I may have too much work one week and no work another. It's much harder to predict how much work I'm going to have from week to week and how much I'm going to earn.

Now I don't work for peanuts so maybe my opinion would be different if I did, but in my opinion, trying to do it all on my own just isn't worth the extra stress and time I would have to invest for the return.

 

[mrsklamc]

I honestly am not sure what skill I have that I could monetize. If I were a SAHM I would probably do childcare but I work full time.

 

[MichiganKris]

I think a lot of it is lack of knowledge, or having the money to start their own business. I lost my engineering job in 2007, I ended up doing ChaCha and starting my own business at that time. It kept us going and our mortgage current until I decided to go back into engineering and found a job in 2010. It is also a lot of work having your own business. I think some of the people looking for WAH jobs are trying to do that work while they are taking care of their children. That really won't work if you have your own business.

 

[mikehn]

Starting a new venture in this economic environment is tough. The economy is not as robust. Its harder to get access to financing. Higher taxes. More govt regulation. Govt regulations are not friendly towards small businesses. All these little things add up to stack the deck against starting a new business these days. If you already run a small business with a good reputation and good name recognition then you have an advantage. It can be done, but starting fresh now is harder than it ever was before.

 

[bumbershoot]

If you want to do it correctly, legally, and officially, it's NOT easy. Business licenses, local taxes, schedule C, advertising, how much of my house am I using for my business, paying your share of SS, etc etc etc....

 

[BelleBeautyandtheBeast]

I agree with Carebee21.

I think fear of failure would be a big reason, you need to invest a decent amount of time, effort and possibly cash to get a business going. If you fail you lose that. Maybe some people just don't have the resources?

I have my own business and it can be a real PITA, I also have a regular job with FT hours. My business has the potential to be FT but I do not want to give up the stability of my regular employment with guaranteed hours and paychecks.

I attempted several other businesses before finally finding one that worked. Live and learn. I am not a quitter though, so I kept trying. I appreciate the flexibility of working on my own and I appreciate the regular paycheck from my job.

 

[ilovemk76]

I'm genuinely curious about something, and you can consider this a spinoff of the work at home scam thread. Why are people so reluctant to consider (or never even seem to consider) starting their own business or freelancing when they need extra money and want to WAH?

I see so many posts about people wanting to WAH and wanting to know if this or that is a scam, or they're willing to work crazy hours for little money at things like Cha Cha or survey taking.

Why the reluctance to start your own gig? You have much more control over the income, can do something you actually like, and have a bit more freedom with the work in general. Is it fear? Is it just that it's too much work to start your own thing? Lack of knowledge about business (which can be overcome, BTW)?

I just don't get why people are so willing to "settle" for the low paying, scammy, hard to find, WAH jobs. Most people have some skill or hobby that they can monetize, so why not do it?

It's what I did many years ago and I've never looked back, or regretted it. I just wonder why people would rather do crap work than strive to find something they genuinely enjoy and which can actually pay them a decent amount of money.

What is it that you monetize at?

 

[branv]

I do similar work as a carebee21. I really only work as a contractor through one company, writing blogs for their clients. It's a "normal" business, not one of the sketchy, content-churner businesses. My job allows me to work from home, completely online. I could probably make a lot more money if I created my own business doing the same work, but also like the PP, I don't want the hassle. Mainly, I do NOT want to do sales. And the number one requirement of owning your own business is that you have to sell your product. Whether that's networking through friends, family or straight cold-calling, you're selling. The thought of it makes me shudder. I won't even do tupperware-type parties, for heaven's sake. Oddly enough, I am generally able to speak in front of a small crowd without much "stage fright", but trying to sell to anyone is a nightmare. The times in my life I worked retail, and later in business where I was expected occasionally to help out with sales meetings, I loathed every bit of it. SO, while I do enjoy the idea of working for myself, I hate the idea of panning for clients more.

Right now, I have the luxury of this money being "extra" cash. We can live well off of DH's salary. If my income was vital, I also am less willing to take the risks of starting my own business. The facts are that most small businesses fail. On top of that, often in the beginning, they require an upfront investment and/or a long lag before income outpaces costs. Not everyone has or can risk that expense. With the WFH job I have, I risk nothing.

An added benefit is that when the clients are jerks or crazy (and we have had a few), I only see a little of that, and have to deal with it not-at-all.

 

[Disneefun]

What is it that you monetize at?

I'm a freelance writer and graphic designer. I do technical manuals, online help, websites, etc. and I also do the occasional article in my field. I took the same job I was being paid to do in the corporate world and turned it into my own little business. I make more now than I did and I have greater control over the work.

For earlier respondents: I never said starting your own thing was easy. It's certainly not. And I'm not talking about the kind of business where you need loans or massive amounts of cash to open a store or market an invention. I'm talking about things like writing, selling crafts on etsy, starting a dog walking service, selling stock photography or clip art, etc. Small things that you can start small and work up. Sure, it's work to get started, find clients, bill them, etc. but no one's going to pay you for literally doing nothing.

My point is just that it seems like it would be more rewarding to spend the time building something for yourself rather than chasing through leads that turn out to be scams, or taking a half hour survey for fifty cents or something like that. Or doing call center work if you don't enjoy it (if you like it, great, but I've hear too many people say something like, "I hate it, but it's all I could do from home.") Life's too short to do something you hate or waste time chasing pennies, and it just seems like it would be more rewarding to build something for yourself, that you control and that can actually bring in some decent money.

 

[brerrabbit]

I think you are mixing two issues and that sort of blurs the picture. If you are a SAHM or a SAHD for that matter there is an issue of working from home. You are looking for extra income in the most preferable way to make what you can while doing it from home. The second case is simply about starting a business in general whether you are stay at home or not. This might mean it is your principle income and each person in the world has a certain risk profile. Many are just to risk adverse to take the chance of going out on their own. SAH men and women a lot of times are just looking for suplimental income and starting your own requires in many cases a lot of time, as well as in many cases a lot of capital upfront. If the goal from the outset was extra spending cash then it makes little or no sense to invest much up front that you may never see back again. People want the upside of the income with others taking the risk financially not them.

 

[danceintherain]

Time. Motivation. Marketability. Business sense. Fear.

It's easier for people to look at a getting hired for a job with a job description, and let someone else absorb the stress of running the business.

For me, we don't need the extra money, and I already have plenty of things to do during my days. If we ever got to the point where we needed the money, I wouldn't have anything built that could actually earn the money, so it would be easier for me to get a normal job.

In general, most people are no self-starters. They need someone to tell them what to do and they need to see direct results. ie Cha Cha might take hours to earn any decent money, but it's a per rate. They know that if they do it, they get a certain direct reward. Running your own business doesn't have this guarantee. Yes, it would be more rewarding in the end, but it's hard to see that reward.

 

[klawso@att.net]

My wife and I are searching for a WAH idea to earn some extra cash...any ideas or thoughts? Not a great writer, but am very skilled in MS Excel and Access...would love to be able to monetize that at home!!

 

[nilseks]

I think a lot of people get into a situation where they need a certain amount of money to get by and pay the bills. When you start a business, there are no guarantees you will make 'x' amount of money, therefore no guarantees you can pay the bills.

DH and I have had 3 homes, and we underbought on all of them so that I could stay home with the kids--we planned this years before I even got pregnant, because I knew eventually I would want to stay home. That afforded me the 'luxury' of being able to start up a business and not have to make a certain amount of money, because DH's job could pay all the bills. My business has grown over the years and become more stable, but it still ebbs and flows. There are times when it provides great extra income for our family, but there are still times when we would probably be in trouble if we needed to rely on a certain amount of income.

By the way, I should say that I own a pet sitting business. It came as a natural extension of a love of animals and pretty much started itself, because I was doing animal rescue and my adopters kept coming back and asking me to care for their pets when they went away. And as the saying goes, and they told 2 friends, and they told 2 friends. I started out just using my name, then slowly built and added a business name, insurance, an two employees, etc etc. I really do believe that you have to do something that you love if you want to make it work long term.

 

[Cheshire Figment]

I would also suggest going to www.irs.gov and order the following publications which will probably help a lot.

334 - Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ)
463 - Travel, Entertainment, Gift, and Car Expenses
535 - Business Expenses
551 - Basis of Assets
552 - Recordkeeping for Individuals
560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
583 - Starting a Business and Keeping Records
587 - Business Use of Your Home
946 - How to Depreciate Property

And also, if the time can be spared and at and minimal cost take a first semester Principles of Accounting course at a local Community College. Not necessarily to keep the books, but to get an understanding of what the business is doing.

Note that most small business fail within the first few years not because the owner did not know his subject but because they did not understand the accounting.

Mike (CPA Retired)

 

[rachel09985]

You need money to start a business...which most people(including me) don't have, especially if you are not in a high up position.

I would never want to start my business. I actually like working in an office. Now if I could combine somehow Disney and Analytics I would do anything for that

 

[maggs1035]

I am a SAHM and have been a childcare provider for 18 yrs, and I make good money doing it! However, my true passion is photography and have had some paying jobs, but would like to start a business doing photography, but I don't really know how to get started? in the beginning I would do it on the side, (nights and weekends) just because I want to be sure it brings on what I'm used too! There is a very popular photographer in our town, but he charges an insane (greedy) amount for photos, so I may be a bit intimidated by that? Really??? $900 for senior pics??

 

[wannagoback]

There is a very popular photographer in our town, but he charges an insane (greedy) amount for photos, so I may be a bit intimidated by that? Really??? $900 for senior pics??

If he can do 10 clients at $900 each vs 20 clients at $450 each, then 10 clients sounds like a better deal for him.

Also, I am a remote employee and work completely from home. My company doesn't allow me to have my children at home while I work but my work doesn't necessitate an office location either. I work in education. I often think about ways to take my skills and "be my own boss" but I enjoy the security of a regular paycheck. I have a friend that just started up her own business. It's not that "nobody" does it, just not many people have the skills and/or confidence to do it!

 

[Nayan]

I am a SAHM and have been a childcare provider for 18 yrs, and I make good money doing it! However, my true passion is photography and have had some paying jobs, but would like to start a business doing photography, but I don't really know how to get started? in the beginning I would do it on the side, (nights and weekends) just because I want to be sure it brings on what I'm used too! There is a very popular photographer in our town, but he charges an insane (greedy) amount for photos, so I may be a bit intimidated by that? Really??? $900 for senior pics??

While having a photography business sounds like a lot of fun and the majority of folks who buy a DSLR think they can do the same, it's actually a lot of work, time, money and knowledge. $900 for pics really isn't a bad price if he knows his stuff. You may scoff at it, but I can guarantee if he has a studio and equipment for any type of shoot he spent thousands of dollars just on cameras and lenses alone.

 

[usd2bmd]

If you want to do it correctly, legally, and officially, it's NOT easy. Business licenses, local taxes, schedule C, advertising, how much of my house am I using for my business, paying your share of SS, etc etc etc....

I totally agree. Starting your own business is not an easy thing to do. Which is why so many of them fail. You need capital among other things, but most importantly you need a business plan. You will alos need money to live off of while it takes off (or doesn't) and most in this economy don't have that.

It's not choosing to stay in a "crap" job, it's choosing to feed your family and pay your bills over not.