Have you been considering finally into your dreams and plowing full speed ahead with your own business? Starting out on your own can be both exciting and terrifying. So, understanding the various pros and cons of starting a business is essential. So while you might just want to get going, it’s important to remember the pros and cons.
- You need to know exactly what it is that you’re getting into.
- This is a decision that will drastically change of your life forever.
- Yes, you’ll be working as your own boss and enjoying all the perk that go along with it.
- However, there are some downsides that you need to be prepared for, as well.
Here is a list of a few important pros and cons for you to think about as you start your business.
Really thinking about these can help you determine whether or not you’re actually ready to take this step.
Make sure that you understand where you fit in every point so that you can confident in your life altering decision today.
What Are the Cons of Owning a Small Business?
- It is a financial risk.
According to information from Bloomberg and published by Forbes, 80% of small business owners will see their venture fail within 18 months. Just 5% of new businesses started today, no matter what the size, will be operating 5 years from now. That is the financial risk you are taking as a business owner.
- You’re going to be working longer hours.
You might get to set your own schedule as a small business owner, but that tends to be for solitary items in the day – like a doctor’s appointment or maybe a day off to accommodate a sick child. 30% of small business owners work 50-59 hours per week. Another 33% work 40-49 hours per week. Just 5% of small business owners work shorter hours compared to traditional employment.
- You can get stuck dealing with the mundane.
When you own a small business, you’re stuck dealing with everything – especially if you’re the only employee. If the computer goes down, you get to deal with fixing it. If you need taxes done, you do them or hire an accountant to do it for you. The details of running a business are very different from the pursuit of what you are passionate about.
- There are hard decisions to make.
When you own a business, many friends may come along, asking you for a job. You might need to turn them down. You might need to fire someone with the full understanding that you’re putting their family into a financially risky situation. Owning a business is tough. There are difficult decisions waiting for you and you’ve got to make them.
- You can be vulnerable to distractions.
Even if you start your small business from a home office to save on startup costs, you’re not free from problems. A home office means home distractions. People come to your door. Your family always interrupts what you’re doing, even if they don’t mean to do so. Working from home can also make it difficult to hire someone if you need help should your business grow.
These owning a small business pros and cons show that it can be a pleasurable, rewarding experience. There are also some difficult steps waiting for you on the road ahead if you start a business. That is why it is always a good idea to make a fully informed decision when thinking about becoming a business owner.