Today’s economy requires us to have more than one source of income. Some of us never land formal employment, hence forced to start a business as the only source of income. Whichever the case, you should start a business of things you are passionate about. Do not go into a business because a friend suggested it or they are doing it, and it is successful. A business should be something you enjoy doing. This is the only way to get the best out of it. Read on to understand some of the pros and cons of starting a small business.
Advantages
Own boss
This is one of the advantages of a small business. You will be the boss. No one is above you. If you have ever been in formal employment, you understand how it is to work under someone. You will be commanded around, and at times, you do not have the right to do what you think is right. Personal business is the only thing that gives you the freedom to apply your thoughts as you want.
Enjoy all the profits alone
This is another great benefit of owning a business. You will enjoy all the earnings from your business alone. Who doesn’t like that? You will be the one deciding what to do with all the profits earned. This is not the case in formal employment because you will spend all your time and energy working for someone and get a fraction of the profits made.
Flexibility
You can decide what to do when. You will not be needed to explain to anyone when you want to attend something important as your child’s school parent’s day. You will have freedom, compared to when you are formally employed.
Disadvantages
Suffer all the losses alone
Yes, if anything happens and the business makes losses, you will suffer them alone. The blow might not be easy especially if the initial capital was borrowed. Your debtors, will not understand what happened, all they will need from you is their money back. I advise small business operators to either use their savings or cash from family members or close friends so that in case of anything, they will understand.
Bad decisions
With a sole business, the owner might make bad or poor decisions. Yes, at times you need help making business decisions, but since you are alone, poor decisions might be made which result in the losses. If you are not sure of a certain decision, I advise you seek help from business professionals.