If you are thinking of running your own small business consider the possible pros and cons that comes with it. While it may be challenging at times, it’s a very rewarding career path to choose. Here are the pros and cons to running a small business.
Pros
- Community impact. As a small business owner you have an opportunity to have an impact on your community. For example, you may want to sponsor some community events.
- Freedom. Running your own business gives you a lot of freedom. You’re the boss. You control what you do for a living, who you hire, and who you want to do business with.
- Equity. Having a small business means you have equity. You can keep it, pass it on to other generations, or sell it.
- Prestige. Owning your own company comes with an added level or prestige. Having this prestige comes with more confidence.
- Higher self esteem. Owning and running your own business is a great confidence boost. It shows you have the passion and drive to lead and run a business on your own. You may even inspire others to start their own business too.
Cons
- Instability with income. It takes a while to establish your own brand. During the early stages of business you may struggle with making steady income. Be sure you have savings you can rely on during these early stages or rough spots.
- Financial risk. Starting your own business is a risk. Investing your money on something that you’re not sure will succeed is a risk you will have to make as a small business owner. If you take out a business loan you are in debt to the lender. This will be hard until you start generating income.
- Longer working hours. Having the added responsibility to run and manage your business comes with added working hours. It’s likely you will have to work beyond the typical Monday through Friday 9-5 workday. As you grow your staff, your work hours may get easier. It depends how much you delegate to other employees.
- Lack of guidance. When you run your own business that means there’s no one above you giving you advice. It may be hard not having a mentor to help guide you through running everything yourself. If you do need that support it is possible to find a mentor outside of your company who has been in your shoes before. It just won’t be the same as having a manager to guide you.
Still unsure if you want to start a small business? You can always hold a professional interview with someone who already has a successful business. These interviews help you understand what it’s like on a day to day basis with someone in your dream job. It’s helpful to understand the cons and plan ahead. Of course no amount of planning can prepare you for the real life experience of running your own business. Some things are best learned by experience. So why not take the jump and just go for it?