There are many challenges to running your own business. The rewards of owning a small business are often greater than the challenges. According to a survey by the Small Business Trends Alliance of Guidant Financial, 76% are “somewhat” or “very” happy with their decision to start a small business.
It’s not just for those with an entrepreneurial spirit. Many people find running a business exciting and this can be for different reasons. There are many advantages to owning your own business, whether you want a flexible life, to be innovative, or to have more control over the work and earnings potential. Here are a few.
Independence and Control
You may have worked in a situation where you thought you could improve your performance if you were able to control the way work was performed. Face it: jobs can be restrictive and don’t always allow you to maximize knowledge and skills.
You can build your business the way you want and when you want. You can develop your product or service at the level that you think is most appropriate. You know what works best for you. You can also take a powernap to boost your creativity and productivity in the afternoon or late morning.
Note:
The Small Business Trends Alliance found that 55% of small-business owners began their business because they “wanted to be their boss”. “1
Financial Rewards
Statistics on business success may seem bleak. As a result, only 50% of businesses last five years. 2 Despite this, you can take steps to increase your chances of success.
You’re more likely, especially as a woman, to get paid what you are worth with a small business. You can increase your income by setting prices for the business and growing it. You could make more money in a business if you add in the tax benefits for businesses.
Flexibility
Many lifestyles can benefit from running a business. Owning your own company can allow you to have the flexibility needed to balance a career and a family. Women-owned business have increased at a higher rate than other new businesses, with 21% per annum compared to 9% from 2014 to 2019.
People who want to travel or live a particular a data-component=”link” data-ordinal=”1″ data-source=”inlineLink” and/or lifestyle can benefit from entrepreneurship. Entrepreneurship is a great option for people who wish to travel, or have a lifestyle. You may also be able to work from home.
Directly helping people
Many small business owners start their own companies to have a positive influence on their local community. It can be through their products and services or the causes they support. The U.S. private sector is made up of nearly half small businesses. Starting your own business can provide employment for many people in the community.
Innovation Opportunity
Established organizations are capable of creating great innovation and change. Small business owners who are unable to get their ideas off the ground in their workplace often come up with the most innovative ideas.
Business icons have all started with a simple idea that changed the world. Disney, Bezos and Gates all had small ideas which turned into big successes. These entrepreneurs started their companies in their garage.
Note:
It may be an indication that you need to start your own business if your employer doesn’t seem interested in your idea.
What to Look Out for
It’s not for everyone. Owning your own business comes with many risks.
- Financial Risk If 50% of businesses fail in five years, you have a 50% risk of losing money with your business. It’s important to create a clear, thorough business strategy in order to ensure you have a good chance of success.
- Personal Liability : You could lose more than just the money that you invested in your business if you do not structure the business so as to protect your assets. This includes your home, your car and your other personal possessions.
- Time commitmentThe feeling of being always on the go can be draining for many small business owners. This is according to the 2016 Bank of the West Bank Small Business Growth Survey. Most business owners put in more than 40 hours per week. 8
- Stress The West Bank Survey also found that many small business owners were concerned about burnout. This is especially true given the current economic and public health crisis that has seen daily stress among small business owners increase significantly. 9
The Bottom Line
- Many entrepreneurs find that owning their own business has many benefits.
- To be their own boss is the most common reason for starting a business.
- Flexibility, financial rewards and the chance to innovate are all benefits.
- There are still serious risks involved in starting your own business. You should plan and carefully think before taking the plunge.
