fear of risk (job/self-employment related)

[aracaris]

So, I have a job, it gets me by, but I've also been doing freelance work on the side. I really really like doing freelance work, and have been surprised that I've managed to get customers without putting much effort into advertising myself, and despite the fact I'm a newbie, competing with all those people out there that have been doing what I'm doing for far longer.

Now I'm constantly learning, and growing at my trade, and finding it really is what I want to do (well at least one thing I really want to do).
I'm to the point where I *might* be able to make enough income just freelancing, especially with a new opportunity that has just come up.
But I'm actually a bit afraid to seize it.
It would be perfect, to actually do something I enjoy. But what scares me is the risk of running one's own business and relying on it to survive, and the possibility of losing a promising client, because they lose interest in their project...or it isn't panning out quite how they expected.

A few years ago I would have jumped ship at whatever job I held to do this, without much forethought, because the state of the economy wasn't nearly so frightening to me.

I'm getting to the point now where the few projects I have going on right now are taking up so much time that pretty soon I think it might get to the point where it will be hard for me to balance them and my current "day job".

So my choice comes to

A job that isn't really something I want to be doing long term, and doesn't earn me as much, but is stable and steady.

or
possibly risky unstable job, but something I really do want to be doing long term, and which makes me more money.

Anyone else been in this situation? How did you cope with the risks of quitting your "day job" and doing what you really actually want to be doing, or did you decide against it? Any advice for a newbie to the world of self-employment?

Some people have told me "now is not the time to start your own business" with the recession going on and all. But is it really the case that someone should just wait until the economy is booming? Especially since that may not happen for a very very long time?

 

[ifelloverboard]

Yes it really is the case that when others pull back you have the most opportunity in front of you to take stake in your respective market.

How bad is the economy really? It's not everywhere. A lot of it is mental. I know I hear about it all the time on the internet and television but things in the communities I frequent have continued to progress as it were prior to the meltdown. So take a look at your demo/market.

If you already are earning business right now on your side project and as long as you are in a sector/market that will continue to grow or maintain a customer base in the "bad economy" then what are you waiting for? It should be somewhat self evident that your business is expanding already in the poor market. If you can establish yourself now things will be much better for you in a "good economy" as everything business related (competition, market, customers, advertising) will be more expensive on you not only financially but in terms of research and time.

EDIT: Given your personality type and such if you were like "I've got this idea for a machine that zips up the wrappers for saltine crackers... I haven't designed it yet or found any investors but the idea sounds awesome" I would tell you to walk in traffic.

 

[aracaris]

The last comment made me laugh! I actually have had some pretty crazy ideas pop into my head, fortunately I'm wise enough to "look both ways first" so I don't walk right out into traffic.

Plus I've gone through the whole sending in resume after resume, for months and months and finding very very few opportunities from "brick and morter" businesses thing, so that makes things look pretty bad.

Also last I heard the unemployment rate was over 12% in my state as well.

I'm mostly worried about ending up without any clients at all at some point, I hear about so many businesses (new and old) going through these ups and downs, and crashing.

I guess what I'll do is keep working both jobs for a little bit while I figure out a plan B in case things don't go so well. I'm pretty new to the work force still (graduated from college not long ago), and don't have much job history or much opportunity to accumulate a significant savings, so I think I should have something else lined up just in case.

 

[ifelloverboard]

It took me a while to get over this but money is money. It wasn't until I moved to a new town with people that didn't know me that I was no longer dependent upon what people thought of me. That's when I really started getting wily because no matter what the employment rate is if you have skill enough to present yourself in a good manner and work hard you can always get a job at a gas station or something until a better job comes along if you fail but don't be saying the same thing in 5 years is all I'm saying. People put up gatekeepers all the time. "Once I get enough money saved up I'm moving to this town" is something I've heard from the same group of people at the bar for the past 3 or 4 years. Yet they're still here and people I know who left did it in a couple of months. If they really wanted to leave they would just do it and make it happen. I really believe unless your business model is just plain crap that the ultimate reason why all these business' fail is because of the person running it. It has little to do with outside circumstances. Take the last company I worked for...

They were pulling in 3 - 4 million about 2 or 3 years ago. This past year they dropped to about 1.5 million. Now the owners are uber conservative and I'm very progressive. I had moved up to a position of relative power (had a region of my own) and I started kind of telling them you can't keep promising things to employees and then not give it to them, you can't make misc deductions from paychecks and not tell them. I really don't want to get into this a whole lot but essentially I was for the workers and they were thinking all the workers were against them. Needless to say they got audited hard core last month and the CEO/CFO/Operations Manager and a couple at my level got axed by the parent company and the business they built from the ground up was sold off.

The most frustrating thing about the people above me was that nothing was ever their fault. It was always the IRS, or the employees, the recession, or our competitors. The reason their business of 9 years ultimately failed was because of them.

Look into getting some investors either way you do it. That will really minimize your risk whenever you decide to do it and help hold you over for the initial valleys. Sure if you're profitable you won't be making as much as you would be until their investment is up (3 - 5 years) but if you lose you won't owe them anything.

 

[aracaris]

That's a pretty good insight into things, and the issue brought up is something that had crossed my mind, but I hadn't really focused on.

I've encountered plenty of people whom are that way, they really want (or at least say they want) to change their lives, and keep saying they will do it when they are in the right circumstances, but either those circumstances never happen, or they keep coming up with new excuses for why they are still stuck in the same old rut.

Distinguishing between when it's truly wise to not take a risk, and when you are just making excuses because you're being lazy or scared, or just lack the necessary confidence is what can be difficult, for a lot of people.

As for investors, do freelancers get investors? I've never heard of them doing so before. I guess I have a lot to learn.

 

[EditorOne]

If you are responsible only for yourself, why not jump in feet first? The worst that will happen is that you'll fail, go on public assistance for awhile, and have to eventually get a job to recoup. But if it's just you, no kids to worry about or elderly parents to support, what they heck? You can take a flying leap at independence or you can spend the rest of your life wondering what would have happened if you had.