Some people think that becoming a business owner an easy thing to accomplish. And will give you a stress-free lifestyle with the flexibility to do what you want, while earning a lot more money. While business ownership has its advantages, it’s not smooth sailing all the time and there are disadvantages to consider.
Here are some advantages and disadvantages of being a business owner:
Advantages of Business Ownership
Taking that step into becoming a business owner can be a hard thing to do but will be very rewarding when you do. Once you take that risk and start a business, there are lots of advantages.
- You will gain independence:
You are your own boss which means you make the decisions. There is no chance of getting fired and you can run the business the way you want to run it. Your business’s success is in your hands.
You are in command of your business so you choose when you want to work which gives you the ability to live a certain lifestyle. You won’t have to ask for annual leave or wait and see if you get approved for leave. You can choose to spend time with the family and choose to run your business from home if you need too.
- Financial rewards:
Being your own boss gives you an increased ability to make more money than working for someone in a 9–5 job. The more work and effort you put into your business, the higher the financial rewards will be.
Being involved in all aspects of your business will allow you to learn and gain knowledge about things like information about your industry, business processes and functions. This information you learn about is the knowledge you wouldn’t have normally learnt.
- A sense of fulfilment and creative freedom:
Having the opportunity to run a business in a field you are passionate about will allow you to let your creativity loose. Achieving your goals within your business and watching your business grow will give you satisfaction and a sense of accomplishment.
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Disadvantages of Business Ownership
Starting your own business has some disadvantages as well. There is a certain amount risk involved with being your own boss. There are great advantages but also some great disadvantages:
- Financial risk:
The funds needed to start your business and keep it profitable can be considerable. Taking the step into business ownership will most probably deplete all your savings and you may not enough to live off as there is no guaranteed income. You may also need a business loan until your business grows profitable.
- Increased stress levels:
As a business owner, you are responsible for everything including the running of your business, customers, employees, expenses etc. There is a huge amount of pressure put on business owners which can build up into stress. Find it hard to switch off.
Related Article: Why Stress Management is so Important for Small Business Owners
- Less free time:
A lot of people think that if you start a business, you will have more free time. This is not true. Business owners are their business and usually work 24/7. Even though you are your own boss and can choose your hours, most business owners can’t get away from business operations. The more time and effort you put into your business to make it profitable, the less time off you have. Once your business gets to a self-sufficient point in its life then you can afford to take time off. However, it can be hard for business owners to actually switch off and relax as the business is an extension of themselves.
- Perform undesirable tasks:
As a business owner, you will have to do things that you don’t enjoy for the sake of the business. All the responsibility falls on you so you will have to make the hard decisions and put in the hard yards to become successful.
Business ownership has some great rewards and benefits but there are risks and downfalls with being a business owner as well. Preparing yourself for the ups and downs of business ownership will give you the best chance of succeeding. Most business owners will agree that the advantages tend to outweigh the disadvantages and it’s well worth taking the risk.
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