Starting Your Business, Advantages and Disadvantages

By admin , in Starting Your Business.

Owning a business irrespective of its size is hardly an easy task. Many people even believe that either you need to be really rich or you need an inheritance of some value to be able to own and run a business successfully. However the fact remains that if you have a great idea going, then starting a new business from the scratch is an option that you should definitely look to exercise. Now in case if you are wondering about what possible benefits you can have by owning a business or are bothered about any possible drawbacks then read on.

Owning a business comes with its own risks and rewards. A few of each are listed below.

Advantages

It’s your business and you are the boss. You call the shots; decide the working hours, hiring processes, management and administration.
There is a chance that you will progressively make more money through you own business than by working for someone else.
Job security is a great factor. No one can fire you. You just need to make sure that your business runs smoothly and you would not end up in any kind of trouble.
As a boss of your company you can involve yourself in the total working of your business and all its processes to improve your knowledgebase.
As an owner you will interact with your customers directly and will be able to lay special emphasis on there needs and requirements which in turn will enable you and your team to improve the quality and the features of the product or services that you may be offering.
Your own business means your own field of work. Not many people end up doing what they really like and make a living out of it.
A lot of satisfaction is derived from creating and running a successful business.

Disadvantages

There is a large financial risk involved in owning a business. New businesses do not start giving money readily and may flounder easily, leaving you bankrupt.
It’s your business and you are responsible. You will need to look in to every small detail that goes into running your business and that may mean long working hours and fewer chances of vacation.
Some businesses almost always hit lean periods once a year. If your business is of that kind then you need to be careful because there will be months when there will be little or no income coming in.
Running a full-fledged business is not easy. A lot of processes are involved which may make your existing education inadequate. Thus you may need to learn a lot of new subjects like administration, planning, promotion, human resource development, research and development etc.
Owning a business means exposure to direct legal problems, which you would not face as an employee in a company.
If somehow you are not able to run your business yourself and your spouse or children take over, then there is a huge risk that the customers may leave you owing to different methods of business employed them.

Running a business involves some amount of risk but may be extremely rewarding if it is successful. If you are sure you can run a business successfully, don’t hold yourself back. Give it a fair try.