Have you ever thought about starting your own business? Deciding whether to stay an employee or become a business owner is challenging. Starting a new business can be an exciting and inspirational endeavor. Like any new venture however, it is not without potential risk. If you are thinking about starting a new business, it is important to weigh all the potential advantages and disadvantages.
One of the greatest advantages of starting a new business is the freedom that comes with being your own boss. As a company employee, you are bound by company rules and regulations. When you own your own business, you get to make your own rules. There is no supervisor to look over your shoulder or to chastise you for coming in late. Being your own boss also means that you can enjoy greater job security knowing than no one can lay you off.
Some new business owners see self-employment as the door to financial freedom. As a company employee, your income is limited by a set salary. Raises and promotions are only at the discretion of your supervisor. When you own your own business, the fruits of you labor are yours to enjoy. Owning a successful business can give you the opportunity to finally achieve financial security and live the life you always dreamed of.
Where there is great opportunity, there is often great risk. While starting a new business can potentially pad your pocketbook, it also presents significant financial risk. Securing the required funding is the first step to starting a new business. Carefully calculate all of your associated costs to determine if you can afford to fund the initial investment or if you will need to apply for a loan. According to the U.S. Small Business Administration, common start-up costs for new businesses include business registration fees, utilities, insurance and inventory. Even once your new business is up and running, you face some financial risk. Businesses that ultimately take a turn for the worst can result in significant financial losses.
Starting a new business can provide you with an opportunity take the reins and to be in control of your own career. However, power also comes with responsibility. As an entrepreneur, you alone are responsible for the success or failure of your business. If a problem arises, you can no longer get help from your supervisor. Instead, you must figure out how to solve the problem yourself. Such responsibility is not for everyone. Entrepreneurs must have the ability to handle the immense responsibility associated with starting and maintaining a new business.