When it comes to being a small business owner, there’s a fairly equitable split between the pros and the cons. Many are drawn by the perceived freedom it brings, while others are deterred by the long hours synonymous with working for yourself. Here are the main advantages and disadvantages you can expect when you run your own company.
CONS
- A lack of certainty
You may have your business plan, marketing strategy and financial forecasts typed up religiously at the start of each financial year, but with a small business, you never know what is round the corner. The pandemic, global economic uncertainty and geopolitical events have had an impact over the last few years and they continue to do so. If you are thinking of setting up a business, and are someone who appreciates a solid and regular income, you should consider this aspect of running a business very carefully before you take the plunge.
- Splitting up while running your business
Running your own business can be stressful. Add a separation from your partner into the mix and that stress can double down. While you can get free legal advice from a family lawyer, it’s worth knowing that your business will be taken into account during any financial settlement in a divorce. If you are splitting up with a partner you are cohabiting with and they play no part in your company, they will not have a right to make a financial claim against the value of it. If you are running the company jointly with your cohabiting partner, then it’s wise to draw up a formal agreement or contract with clear terms and conditions.
- Having to do everything
When you own your own business, you have ultimate responsibility. This means that when someone can’t do their job, machinery breaks down or there’s a problem with the internet, if there’s no one to resolve things, you have to. You have to be a marketer, sales exec, an accountant, a HR specialist and IT expert, as well as everything else. Having to learn about all these business functions can be overwhelming and make you feel as if you are simply having to do everything!
PROS
- Greater freedom and control
As your business grows, you will have more opportunity to take advantage of being your own boss. Book holidays when you want to, take time off for the dental appointments when needed and start work at a time you set. Plus, you are the one who has the final say-so on all business decisions, meaning you don’t have to run new opportunities, new customers or new creative ideas past a supervisor or colleague, you can make those decisions on your own.
- The ability to make a difference
As the owner of a small business, you will be aware of the wider community around you, socially and in a business sense. If you have a cause that you feel passionately about, you can opt to take a more active role in organising and managing various charity activities such as sporting events and community initiatives, plus you can have fun in the process!
- Positive financial rewards
Finally, when you are an employee, it can be difficult to increase your earning potential. Although having your own business means you will have taken some degree of financial risk, the rewards can be substantial, offering you an enhanced quality of life and a strong sense of accomplishment as your business flourishes.
Conclusion
If you are thinking of setting up a new business or embarking on a new venture, it’s important to be passionate and excited as this will fuel those extra working hours you will have to put into it. It’s also crucial to consider all the potential disadvantages to ensure you have a realistic view of what it is to be a business owner.
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