Starting your own business places you squarely in the realm of being an entrepreneur. A common definition of entrepreneurship is the capacity and willingness to create, organize, and run a firm, including all of its risks, in order to make a profit. The most visible form of entrepreneurship is the establishment of new firms. An entrepreneur is therefore a person who takes an idea and an opportunity, and turns these into a profitable enterprise by harnessing the necessary skills and resources to manage the risks involved.
Along with starting your own business are a number of advantages and disadvantages which you need to be aware of as a budding entrepreneur.
Benefits
The majority of small business owners think that there are numerous reasons why they would rather manage their own company than work for someone else. The following are some of the most important reasons behind this:
- The ability to direct your own destiny. While there are always hazards, owning a business allows you to set your own course and set your own goals. This implies you won’t have to rely on a boss’s evaluation of your performance before being promoted, for example.
- The chance to realize your entire potential. Your business becomes a manifestation of your ability and creativity when you develop your own ideas and strategies. Many occupations are not like this, and people can become bored and uninspired..
- The opportunity to make a difference. Many entrepreneurs are driven by the results that their business’s products or services deliver. This can make your work very fulfilling, especially when the impact of your business is great enough to see a difference in the people and environment around you.
- The freedom to pursue your passions. Entrepreneurs frequently turn their hobbies or passions into businesses, giving them the opportunity to do what they love every day.
- The chance to make more money. Most salaried employees have a relatively low income ceiling, however owning a business allows you to make as much as you want. Of course, the success of your business is the most important factor, and it would be a mistake to assume that all business owners are financially well-off.
Disadvantages
Nobody can deny that owning your own business is difficult and dangerous, so you must be fully committed to it. These are the main drawbacks you will face:
- You may lose the money you invested in the company. For the vast majority of people, starting a business is a lifelong ambition, and they will invest nearly all of their resources in it. Many people will lose their hard-earned money as a result of the increasing incidence of small business failures.
- Your earnings will be unpredictable. There’s no guarantee that you’ll make enough money to make ends meet. Part of your planning should include strategies to ensure that beginning a business does not leave you destitute.
- Your workdays will be long and difficult. When your eight hours of work are done, you are not allowed to leave. Your business will only exist if you devote the time it requires, and the tasks you must complete each day can sometimes seem endless. Imagine the worst boss you can have. That will be you making sure that you do your work.
- You’ll have to deal with a lot of stress, especially when you’re just starting out. Entrepreneurs must cope with the fear of what might happen if their business fails while remaining focused on the task at hand. You must be able to cope with high amounts of stress without it affecting your work or personal life.
- You, as well as your staff, must be accountable for everything that occurs. You can’t not accept responsibility for things that aren’t part of your job description as a business owner, as you could as an employee. Everything goes under your job description in the workplace. This is a huge responsibility.
If you haven’t been put off by these disadvantages, read on…