Opening your own business may be one of the best decisions that you can make for yourself and your family. However, it can also be one of the riskiest decisions that you can make. Let’s take a look at some specific pros and cons of starting a business and how you can account for them before getting your company off of the ground.
You Create Your Own Schedule
Perhaps the greatest part about starting your own company is that there is flexibility when creating your schedule. If you prefer to work at night, you can have an employee cover the store during the day. If you can’t work on weekends, someone can work those hours for you without anyone saying anything about it. Of course, it is important that you make yourself available in emergency situations or when customers want to provide feedback.
There Is No Guaranteed Paycheck
The biggest risk that you take when starting a business is not knowing if you will make money or not. Prior to becoming an entrepreneur, be sure that you have enough money in the bank to pay bills for at least the next six months. It may also be possible to plan on your spouse working until the company makes a profit. Credit cards, personal loans and other sources of temporary funding could also be available to make ends meet on a short-term basis.
You Benefit Directly from Your Company’s Success
When working for an employer, you generally earn a predetermined wage no matter how successful the company is. However, when you work for yourself, you get a larger share of the profits. While your people will appreciate receiving a bonus or some other reward for their work, it will still likely pale in comparison to how much you receive.
You’re Responsible for Everything That Happens
As a business owner, it is imperative that you are ready to cover the cost of an employee or customer injury on your premises. It is also imperative to factor in the cost of up keeping that may need to be made to a building or equipment. Trailer repairs for example may need to be done immediately to avoid losing contracts and professional relationships. Insurance policies and corporate lines of credit may help pay for these and other expenses.
If you are thinking about starting a company, the first step should be to create a business plan. Doing so can help you decide why you are creating the business and consider any pitfalls that could hamper your ability to be successful.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.
