Owning a business can be the most satisfying and rewarding experience. It can also be one of the most daunting experiences you can imagine. Some of the most important advantages and disadvantages of owning a small business are suggested below for you to consider before jumping into the fray.
What are the Pros of Owning a Small Business?
Job security
You are in charge of when you own a small business. No one will be able to fire you. It is only when the business doesn’t succeed that you lose your job. You can, however, achieve success if you work very hard.
More Income Potential
Owning a small business offers more revenue potential. In the first five years, turning a profit and making a lot of money may be difficult. However, things often get better in the long run. Running a business helps to create more chances of achieving a windfall compared to traditional employment. You can also decide how much to pay yourself and how you wish to do this, such as paying yourself through dividends
Autonomy
Becoming a business owner implies you are your own boss. You also make the decisions which can benefit your business, enabling it to grow. Nobody can deter you from your goal unless you allow them to. You are responsible for whatever progress you make since you have complete control over the entire operation.
Passion
How many individuals do you know who merely stay in a job because it gives them a salary? Working for someone else and being frustrated every day is no way to live. If you own a small business, you can do what you’re passionate about.
You can also find like-minded people who share your enthusiasm and passion when you’re in a position to recruit potential employees. No boring days await you when you work for yourself.What are the Cons of Owning a Small Business?
Working Longer Hours
As a small business owner, you may be able to establish your own routine, but that rarely allows for personal needs such as an appointment with a doctor or perhaps a day off to support your sick offspring. However, in the UK, it is more common than small business owners work over 2000 hours of overtime a year.
About 30% of small business owners work between 50 and 60 hours a week. Another 33% work 40 to 50 hours every week. Only 5% of small business owners work fewer hours than traditional jobs.
Making Hard Decisions
Many friends might come along when you own a business, asking for a job. You may have to refuse them. You may need to sack an employee, knowing full well you are putting their family in a situation that is financially risky. Running a small business is hard. Difficult decisions await you, and you have to make them on your own.
The pros and cons of setting up a business reveal how rewarding and pleasurable the experience can be. However, there are also some challenging experiences that await you in the course of running your business. That’s why making an informed decision as a potential business owner is of the essence.