8 Pros and Cons of Starting a Small Business

Do you despise your boss? Do you hate your work hours? And what about your salary – do you wish you could earn more? Do you long to have more control over your job? All this would be possible if you had your own business. But wait – as good as that sounds, owning a business is no cakewalk. There are cons to starting a business – pros that are not evident until after you go about setting up your own business. Should you risk starting a business, or should you suck it up and be satisfied working for someone else? That’s a decision that you will have to make – a decision that you can make only after becoming fully aware of the pros and cons of setting up a business read more .

  1. Answer to nobody but yourself

Pro: The most appealing factor to those considering starting a small business is that you are your own boss when you own a business. People answer to you. You have the freedom to make all the decisions in your company.

Con: You answer to yourself. You are responsible for everything that happens within the company and there are no scapegoats. You make all the crucial decisions, and every decision that you make will affect the company adversely. If something goes wrong, you must take full responsibility for it. 

  1. Get lifestyle advantages

Pro: If you don’t enjoy a 9 to 5 job, you can choose the hours you want to work. If you have an urge to sit back and relax on a particular day, you can afford to do so – you don’t have to ask for a day off. 

Con: You will probably end up working longer hours to ensure your business is successful. You might find that you don’t have enough time to relax and that a lot of your time is taken up by the various day-to-day functions of running a business. Some new business owners are known to work for over 50 hours a week. 

  1. Make as much money as you want

Pro: As a business owner, you could make much more money than you get from working for somebody else. You even get to decide how much money you want to make. The money might not begin to come in immediately. Still, if you are persistent and concentrate on running your day-to-day operations, you will start making profits and could even become very wealthy.

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Con: Your initial income may not be as steady as you would like it to be. There might be months when you have very little income or nothing at all. Some entrepreneurs do not get paid for several years. As well as not making enough money, to begin with, you might have to take large financial risks. Don’t forget that there will be bills to be paid, so you must have enough money to run the business during this time.

  1. Work in an area that interests you

Pro: You will get to set up and work in the field of work that interests you, using the skills and knowledge that you possess. Since you work in a familiar area that you love, you have more interest in your work and put in more willing effort in everything that you do. As a business owner, you will be involved in all aspects of your business and will have numerous opportunities to learn.

Con: You will need to keep yourself updated on a variety of new disciplines. In other words, you must continuously learn and keep yourself updated on various aspects of your business, like bookkeeping and filing, advertising, marketing, office management, and inventory control.

  1. Get personal satisfaction

Pro: When you run your own business, you get the personal satisfaction of successfully managing an entire business.

Con: According to an article on Fundera, 20% of small businesses fail within their first year. Of those businesses that manage to progress to the second year, 30% fail. A whopping 50% of small businesses that survive the next two years will fail during their 5th year, and 70% of businesses don’t make it to their 10th anniversary. 

  1. Enjoy the sweet taste of success

Pro: When you are the owner of a business, success is much sweeter and unlike any other. There is a sense of accomplishment. You know that all your success is the product of your hard work and dedication. 

Con: If your business does not succeed, you will feel overwhelmingly defeated. Business failure is known to lead to both mental and physical breakdowns. You could end up in a state of depression when all your hard work does not pay off – especially if you lose your money or your family’s money in the process.

  1. Spend more time with family – set up your business from home

Pro: If you miss spending quality time with your family, you can run your business from your home. With a home-run business, your startup costs will be lesser, you won’t have to commute, and you can maintain flexible working hours – even working during weekends if you wish to.

Con: Be prepared for interruptions from family members, door-to-door salespeople, and friends. You might not be accessible to suppliers, and potential employees might be put-off by a home office. As your business grows, you might run out of space at home and need to move to a bigger office.

  1. Take risks

Pro: Are you a risk-taker? If you like taking risks, you can afford to take all sorts of risks with your own business without having to seek permission from superiors or answering to anyone if the risks  backfire.

Con: All businesses are at risk of potentially being at the receiving end of expensive lawsuits. Unhappy clients, errors and omissions caused by your business could all lead to costly litigations potentially. If you decide to start your own business, you can protect your business and your reputation by investing in proper errors & emissions insurance. Visit bizinsure.com for more information on various types of insurances for business owners.

Conclusion

There are two sides to every coin, and there are two sides to starting a business – the pros and the cons. There are advantages to starting up a business – especially if you can ensure its success. Still, the same benefits can be disadvantageous if you don’t watch out. If you are aware of the cons, you can do everything in your power to mitigate them. 

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