Advantages and Disadvantages of Starting Up Your Own Business

In this article we are addressing the advantages and disadvantages of starting up your own business. People have different motivations for wanting to start out on their own - for example, to fulfill a lifelong dream of becoming their own boss or because they have been made redundant.

Whatever the reasons you may have it is really important to consider carefully the pros and cons involved in making this decision because this is a really big step. Take some time to consider a few of them below so you can make an informed decision as to whether it is right step for you to take.

Advantages:

1. You will be your own boss and as such you will be able to set your own working hours.

2. There is the potential for higher income if things go according to plan - you get to essentially write your own pay check and enjoy the perks of life.

3. Your direct involvement in all aspects of the business decisions including input in the creative aspects of your business means a greater sense of fulfillment and achievement.

4. You are in the driver's seat providing direction for the business regarding its growth and future.

Disadvantages:

1. Starting up your own business means you will need to raise some capital or seed money to get the business off the ground. Where will this money come from - your lifelong savings or a bank loan? You will also have to consider how you will fend for yourself and your family if you have one until the business can produce for you.

2. With this investment comes a greater financial risk as there is the possibility of losing all your capital if things go pear shaped and turn sour. If you have had to borrow money to fund your business you will certainly need a backup plan for making the repayments.

3. Even though part of the attraction in running your own business is the fact that you can set your own working hours you may find that at the start that you will have to work very long hours. Are you prepared to make the commitment and give your business what it takes to get the business off the ground and attain a level of success?

4. The business, as with all businesses, is vulnerable to economic changes. You must be prepared to be dynamic and make changes to your business to accommodate changes in the economy whether favourable or otherwise.

Whatever business you decide to embark upon, as you can see there are clearly advantages and disadvantages to consider. Starting up a venture is not for the faint hearted, however, if after careful consideration you choose to go ahead, the good news is there is always help out there.

When you do encounter challenges, as we all do in business, do not be afraid or embarrassed to seek help because as the saying goes "if it's going to be (successful), it is up to me". So it is entirely up to you to bring about your own success. Once you have overcome a certain challenge you will be better able to handle it the next time around. A good support network will go a long way to leverage your chances of success, especially if you lack experience and it is wise to look for that help and take advantage of it.