Before you go into business for yourself, it helps to know the pros and cons.

The pros and cons of starting your own business, part 1

July 11, 2016 10:05 am Published by Leave your thoughts

Starting a business can be a meaningful and validating step toward self-actualization. There are countless reasons why a person may want to start their own business: Maybe it's the culmination of a lifelong dream. Perhaps an entrepreneur has been encouraged by family and friends to bring a particularly innovative product or family recipe to market. Or maybe they've simply spent years working for others and are looking to create something of their own.

"Starting a business isn't a decision to be taken lightly."

Regardless of the reason, starting a business isn't a decision to be taken lightly. New businesses are costly, time-consuming and often struggle for years before they see a profit. Then again, there can be plenty of positives to owning your own enterprise. In part one of our two part series, we will detail the pros of starting a new business.

The biggest and most commonly cited reason that many go into business for themselves is to have the opportunity to be their own boss. This can be emotionally validating, contributing to an overall sense of pride in the work being done that often doesn't come easy when a person is simply putting in time and collecting a paycheck.

The stomach-churning rollercoaster that is the employment economy has led to many deciding to simply get off the ride. Going into business for yourself means, on a basic level, you will have a job, and ideally one where you are using your personal skills to their full potential. It may not be the highest paying job and it may be exhausting, but it is steady work and only you can say when it's time to move on.

Does a more traditional 9-to-5 job not work with your unique schedule? Starting your own business allows you to set your own schedule and not have to slavishly observe office hours. This makes it a potentially ideal solution for parents of children or with other time commitments.

When your business is a success, every penny of the profits filters back to you rather than a boss or corporate shareholder. The possibility of earning more money than if you were employed by someone else makes the prospect of opening up shop on your own very attractive for many. 

Stimulating the local economy
America was founded on the spirit of entrepreneurs looking to create something for themselves, and local businesses are still a cornerstone of our economy. Opening your own shop generates tax revenue, creates jobs and gives consumers more competitive choices when it comes to products and services.

An asset of your own
Beyond being a source of employment for you, the business owner, starting an enterprise functions as an asset if the business proves profitable. It can be sold or franchised to be a source of income when you are no longer interested in operating it yourself, or ownership transferred to your children or family after your death. 

Come back next time for the second part of our series exploring what you need to know about starting a business. 

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