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Do You Really Need to Be an Owner?

August 26, 2014 Clark Allison

Many of my microbusiness clients are successful freelancers or independent contractors. Every now and then, one of them will be asked by a business they contract with to become an owner in the business. Sometimes it may be a good idea, but in many cases it’s not.

As a freelancer or independent contractor, you control your expenses and your work experience. As an owner of a bigger business, you will take on liability for the business expenses, including rent, payroll and employee issues. And for what – the status of being an owner? Is that enough? Probably not unless you see a likely tangible return on your investment such as if the company is positioned to be purchased by a bigger company and your ownership stake will yield a big return. This isn’t too likely.

Otherwise, why take on the headaches and liabilities of ownership in someone else’s business? You have a good gig going. You are your brand. Your overhead is low. Your profit margin is good. And you control your schedule – which means you control your life. That’s the goal of most business owners and most miss it.

Filed Under: Microbusiness

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