Starting a business is one of the toughest decisions a person might undertake in his/her lifetime. Yes, being your own boss will provide you the freedom and flexibility that you might be looking for. But not everyone is equipped to handle the level of commitment required to build an empire. Like everything else – starting a business has its own unique set of adversity. While some have innate ability to skillfully navigate such hurdles – others are left flabbergasted and unable to make it through.
People like Bill Gates, Steve Jobs, Warrant Buffet, Jeff Bezos, Mark Zuckerberg, Elon Musk – are household names who have made a name for themselves through their product or services. While we might be fixated on the success of the aforementioned people, there are hundreds, even thousands of people who have tried and failed to start a successful business. Take the example of Blockbuster Video, Kodak Camera, Nokia Phones, etc. All industry leaders in their respective field at one point, but are now regarded as a cautionary tale of what might happen to a business if it does not keep up with the industry they operate under.
While some people might know from an early age that they were meant to run and operate their own business, others start a business due to external circumstances like losing a job, retirement, wanting more out of life, parenthood, etc. The road towards starting a business might not be the same for any two people – the road after starting your own shop is the same. As someone starting a business, it rests on your shoulder to know the ins and outs of the industry before jumping into the industry.
Do you want a lifestyle business that gives you a great work/life balance, or do you want to grow as fast as possible? Are you going to bootstrap the business and grow organically, or find investors to help you scale faster? This article highlights the pros and cons about starting your own business.
Pros or Benefits of Starting your own Business:
- Windfall: You could make much more money than working for someone else.
- Autonomy: Be your own boss, and make all the decisions crucial to your own success.
- Influence: Hire other people to help – chip in to the local economy.
- Security: No one can fire you.
- Discovery: Put your own ideas into practice, and see what works and what doesn’t.
- Oversight: Control every aspect of the business.
- Experience: Learn about every aspect of a business and gain knowledge in a variety of disciplines.
- Contact: Work directly with your customers, and see what they need first-hand.
- Self-Belief: Take personal satisfaction of creating and running a successful business on your own.
- Interest: Work in a field or area that you really enjoy, or that compels you to continue working.
- Long-term: Build real retirement value – for example, by selling the business when you retire.
- Establishment: Put down roots in a community; provide a sense of belonging and stability.
- No commute : Live anywhere unless your business hinges on your location.
- Flexible Schedule: Your schedule can be more flexible if business can be conducted outside weekday business hours.
Cons or Risks of Starting your own Business:
- Investment: You may have to take a large financial risk.
- Devotion: You’ll likely have to work long hours and may have fewer opportunities to take vacations.
- Minutiae: Much time could be eaten by the details of running a business, not those things you enjoy.
- Inconsistency: Your income may not be steady; there may be times when very little is coming in at all.
- Strain: You may have to undertake unpleasant tasks, like firing someone or refusing to hire a friend.
- Learning: You may need to learn new disciplines, like filing and bookkeeping, inventory control, production planning, advertising and promotion, market research and general management.
Deciding to go on your own is never an easy decision. Keeping the aforementioned pros and cons in mind, only you can decide – whether or not starting a new venture is right for you.