If you are thinking about giving up your day job to start your own business or are signing up a partnership for business then you should think thoroughly about the uncertainties and risks involved. We are here to help you make a decision by sharing with you the pros and cons of owning a business.
But before we jump to the pros and cons you should ask yourself if you’re ready to start a business. Because running a business not only requires a lot of your time and commitment but it may also require for you to put your personal belongings as collateral against raising money for your business. Furthermore, a business requires much more attention in its early developing stages which may leave a little time for your personal life and family. There are other decisions like which company structure should you choose and if you want to form an LLC then how to get LLC? Or what about tax id number application and other permits and licenses.
If you’re comfortable to take on this challenge, then it’s time to look at the pros and cons of owning a business to decide if you should start your own business.
All is yours:
The major pro of owning ‘your’ business is that all the profits are yours. It also means that you are your own boss; free to make all the decisions that are important for the business and mean that no one can fire you. You’ll be in charge of every aspect of the business and can introduce new products/services that you deem are crucial for your business to expand.
By owning a business you’ll need to hire people to help you. You’ll be able to create jobs and help the local economy. It also establishes a sense of belonging and stability deep inside a community.
You’ll be in contact with all sorts of service providers and other businesses that will give you more exposure and experience. Other than that, you’ll also gain experience by engaging in a variety of disciplines to run your business smoothly. You can directly engage your customers and learn about the market trends to introduce products and services in demand.
Businesses require a lot of investment and not only financial but of time too. Owning a business means that you’ll have to take large financial risks and spend much of your time running your business. It requires a special devotion from your side so the employees work harder too.
The most major con of running a business is the inconsistency of income. The money flow will fluctuate majorly and it may be that you have large profits in a month and the next you earn as little as to just cover your expenses or in some cases, not even that.
As we said earlier; all is yours. That means you are under a lot of pressure and stress from all the tasks that you’re supposed to do or overlook. You’re also investing a lot of time for business that means very few vacations.