Advantages and Disadvantages of Having Your Own Business – A venture comes with advantages and disadvantages. Explore the pros and cons before you start your business prepares you for the possibilities. For some people, disadvantages can overcome possible gains; For other new business owners, exercise helps identify and avoid pitfalls. The type of firm you choose will make some advantages and disadvantages more relevant, but most of the problems apply universally to the ownership of the business.
Advantages and Disadvantages of Having Your Own Business
One advantage for many entrepreneurs is the control in making decisions of the company. As an owner, you shape the company based on your own visions and goals. As you are the boss, decide how to manage the enterprise and which direction to follow. You set your work schedule, which means more flexibility, and decide whether you want to have a full-time or partial business. It can also control the amount of effort undertaken. In most cases, the greater the effort committed, the better the results will be.
When you own a business, you receive directly the reward of the effort you have committed to the company. If you create a highly profitable and successful venture, you will benefit from your income and reputation in the business world. Seeing your vision become reality offers a sense of pride and realization. This recognition is not always so immediate and sometimes will not come if you work for someone.
It all depends on you
One possible drawback of owning a business is that you are responsible for his success or failure. The initial phase is often the most difficult because your company is not yet established in the market. Owners starting a business often spend long hours working hard to get the company to work. A day lost due to illness or other personal situations often means wasted income and opportunities. Balancing work and personal life become a problem for many entrepreneurs, as it tends to consume more of its life, decreasing the time for the family. You may find yourself with less time to socialize because you are working more.
Variations in income
As an employee of an established company, you receive your salary regularly, in a consistent amount. When you run a business, it is likely that the rent will fluctuate, sometimes extremely: you can have one month of income record followed by another with almost none. Owning a planning for these fluctuations makes it easy to pay all the bills in low-income months. You also need to study the cost of benefits for yourself and for all employees. By leaving the corporate world, you leave behind the health plan, the paid vacations, the retirement plans and all other types of benefits.