Advantages and Disadvantages of Business Ownership
It has been said that owning a small business has its advantages, but also its drawbacks. Are you thinking about becoming a Business Ownership proprietor? Before making your decision, weigh the advantages and potential drawbacks (Small Business Development Center 2006) associated with being an entrepreneur.
Advantages of Owning a Small Business
Owning a small business offers several advantages to those who succeed, from having control over expenses to being part of an entrepreneurial community.
Entrepreneurship can be incredibly rewarding. It is part of the American dream to be able to take a risk and launch your own venture, and success comes with many rewards:
You’re the boss of your business, and as such you cannot be fired. Most importantly, however, is your freedom to make critical decisions that will determine its success.
Owning a small business can offer many lifestyle advantages. As the boss, you have complete control over where and when to work; whether it’s important for you to spend more time with family or other non-work activities. With today’s technology, starting a home based business could even be feasible; saving you from having to commute.
Even with a high degree of financial risk, running your own business can yield more money than working for someone else. Your hard work pays off in the end.
Experience Learning Business Ownership Opportunities.
As the owner of a business, you are exposed to all aspects of its operations. This provides numerous chances for you to develop an in-depth knowledge about every facet of your business.
Personal satisfaction and creativity. Owning a business gives you the freedom to pursue what you love, putting your knowledge and skills to use in the process. Your personal fulfillment will come from working with customers and watching your venture flourish. Being in charge of something so important can bring both of those things!
What are the potential drawbacks of owning a small business?
Here’s what you should be aware of when starting a small business.
You need the financial resources necessary to launch and expand your possible that the business, potentially borrowing money or spending most of what you have saved up. A major financial setback could result in a substantial loss. Furthermore, there’s no assurance of income; it could be that the business does not generate enough revenue during its early years to allow you to live comfortably — particularly during these early years.
As the business owner, you bear responsibility for managing your stress levels. With so much on your plate – employees, competition, bills, equipment breakdowns and customer issues – there’s a lot to worry about! Your employees should be treated as valuable assets under your management as part of what makes up a successful business. Your employees’ wellbeing should be your top priority as an owner.
Many people start businesses to free up more time for family life, but running a business can be very time-consuming. While you may think you have the right to take time off, in reality this may not be true; in reality, working for someone else likely gives more freedom than the typical forty-hour workweek does (Figure 5.6 “The Entrepreneur’s Workweek”)). Vacationing without interruption from technology like cell phones, iPads, internet-connected laptops and iPhones has become more challenging in recent years; many small business owners regret not being reachable when away from work.
Duties that you may find unpleasant.
Starting a business means being responsible for almost everything – including doing or supervising tasks you don’t enjoy doing. As the owner, it may even be necessary to deal with unpleasant tasks like firing employees.