Starting up a new business is as much fun as it is an adventure. It brings your dreams to reality; giving you the flexibility of setting your own schedule, offering you a limitless income potential, you are your own boss! Well as much as farfetched that sounds, but it is true. Though starting your own business comes with its own cons even though it has lots of pros. I don’t intend for this article to scare anyone from starting his or her own business. Trust me anyone willing to try it can do it! I am only using this article to help you guide yourself while making the decision of starting your own business.
Most people are of the opinion that you would need to borrow lots of money to start a reasonable business. The trust is that most of the small businesses available today were started with the owner investing his own time and money. It is businesses that require expensive equipments like great labor, substantial inventory and so on that needs huge investments that can be gotten from an outside source.
Though, we can still modify most big business ideas into a smaller startup without the need of huge capital and grow it into a multi-national company over a set period of time. There are lots of awesome reasons that can motivate one to start up a new business, and as well there are several great reasons not to start one. This is the reason you must consider the cons and pros of starting a new business. You must also note that everyone’s situation is unique; what works for another might not work for you. Mr. Yitz Grоѕѕmаn is Prеѕіdеnt and Chаіrmаn оf Tаrgеt Cаріtаl Cоrроrаtіоn, a financial соnѕultіng company ѕіnсе 1983. Bаѕеd іn Washington Strееt, Braintree, Massachusetts 02184, USA.
Let me fill you in on some cons and pros that you should consider before starting your own business:
Becoming your own boss
Cons:
There is a disadvantage on becoming your own boss. As a boss you should know that your employees would only run to you when there is issues way beyond them. Such issues can really be hard and very time consuming. Issues like having to deal with difficult clients. Being a leader is not so easy and can feel so lonely sometimes. It is always advisable to have a peer group or a mentor. Doing that can help you create some comfort and a forum that you can always rely on for ideas. Do not believe that your employees would ever tell you the bitter truth. You sure need to ask for and listen to honest feedbacks regularly.
Pros:
Becoming your own boss simply gives you the power to drive the company to the direction of you need for it to go. As a boss, you do not answer to anyone or have to meet deadlines of a boss. This aspect is one that anyone who had been in a bureaucratic business environment would enjoy.
Having control over your time
Con:
It is not easy to be disciplined with schedule and self motivated. As a boss who has control over his or her time, you would have to be well disciplined with schedules. There is never going to be anyone to boss you and monitor you, so achieving your set goals depends on your discipline. Well, it might not sound like a con to you right now, but it becomes one when you require a formal structure to run your business.
Pros:
It is no doubt a great thing to be flexible with your time. There is hardly anything you cannot do. You can go on vacation, pick up your kids from school, go golfing, or go fishing. You do not answer to anyone for not working or missing work during the day, so no worries about losing your job. There is nothing as awesome as controlling your own time.
You can choose to set up the business in your own style.
Cons:
As the boss and owner of the business, you are also responsible for finance, sales, marketing, human resources, and operations. If any of these is not working, it is your responsibility to fix it. Trust me you do not want to know how tiresome and time consuming that can be. At the very early stage of your new business as the boss, you could be working so hard and earning so little.
Pros:
You have the liberty to build your dream just the way you want to. You can come up with different and unique ways of running your business as well as a unique structure for your employees. You are free to carry out the ideas of other people and make it even better
You are responsible for Finances
Con:
You have the responsibility of procuring all the financial resources. The risk of borrowing money, seeking for an investor, getting an SBA loan, or even investing your own money is yours alone to bear. Securing funds would also require you to sign up a personal guarantee. This means that you will have to file for bankruptcy or pay them back if the business fails. Well, it is one of those risks you have to take as an entrepreneur. This is why most entrepreneurs seek for investors.
Managing of cash flow is also on you:
You have to find a way to take care of your bills as well as payrolls. If you do not have the funds to take care of bills and payrolls, it is your responsibility to find it. You can either up your loans, work harder to get more clients, or borrow more money. It is your choice to make on what you need to do to save your business.
Pros:
When and how you spend money, which market or product you put in your money is your sole decision to make. How you share the business profit is also your own decision. You could decide to share it with staff members who are important to your business growth, invest it back to the business or keep it to yourself. You can decide to retire early enough and leave your children with a great inheritance.
This is not the end of the list, but I would stop here for now. With a strong will, you can succeed with these little tips. Please note that the starting phase is never easy, but with time and patience, you can expand your capital.