Pitfalls of running your own business

It sounds impressive to say that you have your own business, but remember, every coin has a flip side too!

Running your own company means you are the one that has to come up with the ideas, see projects through and ensure your clients are happy with the results.

Getting customers is one part of the job, keeping them can be much more of an issue. If the weather is great and all your friends take a day off to go out and about, the chances are that you will have to skip this outing because being your own boss does not necessarily mean you can decide when to work. If a project needs finishing, you are the one that needs to do it – you cannot hide behind your colleagues. Therefore you need determination, perseverance, flexibility, creativity and lots of energy.

Retirement pension and sickness insurance

Apart from the required skills, other aspects that need attention are your pension provision and insurance. Every person working in the Netherlands needs health insurance, but apart from that, entrepreneurs do not have access to regular unemployment benefit (WW), sickness benefits (Ziektewet, WIA), so they need to look at options to cover for this. They also need to provide a supplementary pension for themselves. This is a major difference from being an employee – take this into account when starting your own company and make sure you provide for this adequately.

Do not leave it until it is too late

When you are young, retirement may seem light years away, but waiting too long to plan for it may only make it more expensive to build up a good pension. While the question of a pension is open for discussion, accident and sickness insurance is something you should arrange immediately.

Source: Expertise in Labour Mobility

last modified Aug 12, 2013 02:35 PM
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