It is reported that, at any given time, up to one in five of us are dreaming of setting up a venture of our own. However, for the vast majority, it remains nothing but a thought that is re-visited every now and again.

Often the biggest deterrent is the security of a guaranteed wage and the horror stories about how many new businesses fail. These are certainly very real considerations and should not be ignored entirely. However, a large number of the business failures could have been prevented with a little more thought, research and sound advice. The vast majority of those who do succeed earn their owners enough money to survive at worst and some do go on to make more than they would have done if they had been paid by an employer.

Even if you earn less, the biggest advantages of running your own businesses have nothing to do with money. Being in charge of your own destiny, doing something you love and not answering to the ‘boss’ more than make up for any loss in salary.

So, what is the reality? There are many advantages of running your own business:

Do something you really enjoy

Probably the biggest reason people start their own business is to spend time doing something they like doing rather than they have to do. We spend a significant portion of our lives at work, so why not make the most of it and turn it into a pleasure rather than a pain!

You are your own boss

Feel that things need to be done differently, a change of strategy or a change of tactics, fancy working with new people and partners? These are all your decisions now.

Work/life balance

If the 9 to 5 doesn’t work for you then work to a schedule that does, as long as you make it pay then you can work when and for however long you want.

Financial reward

If you get it right, then the financial reward can be magnitudes beyond that you could earn as a wage working for an employer.

Sounds great – right?! But there are some disadvantages of running your own business:

Running the business (not just the bits that you enjoy)

In no time at all you will be knee deep in VAT returns, book-keeping, health and safety matters and countless other tasks that are all part and parcel of running a business. These are all someone else’s problem when you work for an employer, now they’re yours.

Financial risk

With the chance of great reward comes the danger of great risk. Giving up a steady predictable income in the hope of making a venture succeed is not for everyone and is the major barrier for most people starting their own business.

Very difficult to leave work ‘at work’

For most people, running your own business is all-consuming - there is no escape. The regular predictable schedule of standard employment works better for a lot of people.

How do you know if you are the right type of person and have the right idea to run your own business?

Thankfully, you don’t need any formal qualifications required to run a business and the opportunity is open to everyone. The truth is only the most determined and hard-working survive. If you love what you are doing or if you have a hobby that can be turned into a business, you stand a much better chance of success. With regard to the business itself, the most important requirement is that it solves a problem or adds value to enough people who are prepared to pay a price that makes it possible for you to make enough profit to survive/thrive.

The good news is that you don’t have to go into this ‘blind’ or alone. There is plenty of help available and much of it is free. One great source is the Start Your Own Business website, www.syob.net where you will find details of local support organisations and also be able to download a free step-by-step guide to starting a business and free start-up pack. These will enable you to identify if you have what it takes and whether your idea is sound enough to explore further.