The last fifteen months has redefined job security for millions. The pandemic ceased business activity worldwide, leading to financial demise for individuals and businesses far and wide. People were, and still are, left without a means to earn income and provide basic necessities for their families. Although the economy is re-opening, uncertainty looms for millions of people who have returned to work as employees. Whether or not your livelihood has been negatively affected by the pandemic, the following are reasons to consider starting your own business:
You May Lower Your Taxes
As a small business owner, you may be able to get tax breaks that help your business and ultimately help you as an individual.
Greater Income Security
You might never face unemployment when you operate your own business. Although your business income may be lower than desired at some point, owning a business presents additional options for income than not owning a business; resulting in security by performing activities which generates income.
Unlimited Income Potential
Although it is possible to earn a highly substantial income as an employee, operating your own business provides more opportunity to earn an unlimited income. A great majority of people who hold jobs will only make as much money as their job will compensate them for working. On the contrary, business owners rely on their skills, motivation, and passion which can lead to endless opportunities.
Retirement Contribution Options
As an employee, your employer limits the amount of your retirement contributions. Your income may prohibit
you from supplementing your retirement contributions through an IRA, or Individual Retirement Account. Business owners can establish IRA’s that offer higher contribution limits.
Adequate Compensation For Talents
It is not unusual for companies to require employees to sign non-compete agreements as a condition of employment. This protects the company from losing revenue by an employee stealing intellectual property or creating products of their own. (Read the last sentence again, please.) Yes, that is correct! Remember the famous Bratz dolls? The creator of the beloved toys was on to something in 2001. The only problem was his employment as a designer with Mattel. A judge awarded Mattel ten million dollars for copyright infringement, ninety million dollars for breach of contract, and the judge’s ruling placed the Bratz brand under Mattel’s control in 2008 after Barbie won a copyright case arguing the Bratz concept was developed by one of its designers. Simply put, if Carter Bryant would have created the Bratz design and partnered with MGA without being an employee of Mattel he would not have lost the Bratz brand and the over three billion dollars in revenue it generated in seven years.