Why Start a Small Business? Pros and Cons of Owning a Small Business
Do you feel like you are not paid enough at your regular job? Or do you think you can make more money by working the exact hours? Then it’s time for you to start your own online business. Click to read more about why start a small business.
Well, being an entrepreneur is what people love these days. And the reason behind this is the freedom of working on the things that they actually like to do. For instance, someone who loves gardening works 100 times better in his own gardening supplies store than a full-time job at some supermarket.
Similarly, numerous other reasons prove having your business is much better than working on salary. However, it can have a few drawbacks also. For this reason, we have prepared the pros and cons of starting a business for you. Read along and decide for yourself!
Pros /Benefits of Starting a Small Business
● Innovative Ideas
First and foremost, you are free to choose whichever ideas you want to invest in. You can select whichever career you wish to try. Let’s assume that you are interested in arts like painting or photography. In such a case, you can open your own art/photography studio. Furthermore, you can insert new concepts whenever and wherever you like in your business. No one can reject your idea, and you can mold them at any stage.
● You Are Your Own Boss
You are the CEO of your empire. In your business, you are not bound to praise your seniors so that you might get a raise. No one can give you orders if you are the boss. Moreover, you can make your own rules. There is no dress code or sitting rules, unlike your regular job.
● Financial Freedom
Your business allows you to have more freedom to manage your finances. It’s up to you how much money you want to make. And you can work the exact amount of hours to earn that money. For instance, if you have made less money in a day, you can work more on the next day to keep up with the finances.
● Time Management
In your own business, you can work for as many hours as you want. Similarly, You can leave work when you are too busy or too stressed to work. You are not bound to sit at the workstation until the office hours are over.
● Secures Future
On your regular 9-to-5 job, you won’t know how to manage expenses if your job ends today. In addition, there is a retirement limit to such employments. You can’t get a salary after that. Instead of falling into this trap, you can secure your future by investing in a business. In this way, you are free to work till older age and no one can fire you. Plus, your work and investment in the active years can help you pay bills even after becoming old and weak.
With your own business, you can choose where you want to work. You can open a cafe or a software house just near to your house. It will be much easier to visit, and you won’t have to travel far off every day to make money for the rest of your life.
Cons /Drawbacks of Starting a Small Business
● Risk of Failure
Leaving your job and investing your life savings in a business is much of a risk. There is no guarantee that your business will thrive. And if it fails, the financial setback will be hard to overcome. Apart from the financial risk, there are also risks of management issues, product liability, and regulation.
Running a business can be nothing less than a 24/7 load. Working all the departments by yourself and checking on your employees can be overwhelming. Moreover, you may be always worried about any future mishaps. Finding honest workers and potential clients can also be a big hassle.
● Time Commitment
Sometimes, you have to work more at your own business than your 9-to-5 job, especially at the start. Moreover, you don’t get a day off. At your typical job, you can make get-together plans after 5 or 6 pm as you’re sure that you won’t have to work after office hours at any cost. Likewise, you are free to make plans on your days off.
On the other hand, you never know when you will get free at your own business. No doubt, it allows you to choose your work hours but you are never sure if any last-minute task comes up. You may be at a party, and you get a call about supply issues.
● Unpredictable Threats
Apart from the risk of failure, other unforeseen threats can also hurt your business. For example, a sudden geographical or political event can change the economy. The government puts a ban on selling similar goods, or a country-wise lockdown may impose due to a pandemic. Or else, a strong competitor may appear out of the blue and steal all your clients. These misfortunes can be uncanny to avoid.
Factors to Consider Before Starting a Small Business
Business idea: The idea is the seed of a business, and your company’s growth depends upon it. Therefore, it is essential to research the trending ideas thoroughly. Go for the concepts that stand out from the competitors. People love something unique.
Market research: Search the market to know your target audience. Find out which brands are better in this business and what’s the reason for their success. Search properly, learn and plan everything before
implementing the business idea.
Know your competitors: The world is a race, especially in the case of business. Thus, it is crucial to know who your competition is. What’s next? Find the factors that your competitor is lacking. Eventually, plan to make your start-up better in those areas.
Budget: Estimate your budget and calculate the start-up cost. After that, estimate the working capital needed to run that business. After all that, spare some amount in case something goes wrong.
Make a plan: Once you complete the background research, it’s time to devise a business plan and follow it step-by-step. Your brand mission should be clear. A business plan helps you manage tasks, keeps you focused, and helps formulate ways to get out of trouble.
Starting your own business can be risky. Anyhow, the benefits you can get are worth the try. Your own business helps you manage time, workload, and expenses in a much better way than your regular job. And most important of them all, you can make a living by doing what you love!
However, factors like the business idea, market research, and investments are vital to consider before taking a leap. Plus, you should be ready for any unforeseen events. And don’t forget; hope is the key. You never know what tomorrow may bring!