The 3 Advantages & 3 Drawbacks of Owning a “Personal Business”

The Advantages of Small Personal Business Ownership

It can be very rewarding to own a business. The American dream is about being able to take risks and personal business launch a business. There are many benefits to success:

  • Independence. You are your boss as a business owner. You can’t get fired. You have the freedom and control to make the business decisions that will ensure your success.
  • Lifestyle. A small business can give you many lifestyle benefits. You are in control of your work hours and can choose where you want it to be done. You don’t need to ask for time off if you want to spend more quality time with your family or other activities. You might consider running your business from home if you feel it is important Craigslist Lexington to be with your family every day. It’s easy with today’s technology. It also eliminates commute time.
  • Financial rewards. Even though there is a high level of financial risk, owning your business can give you more opportunities to make money than if it were run by someone else. Your hard work is rewarded.
  • Opportunities for learning. You will be involved in every aspect of your business as a business owner. This gives you many opportunities to learn about the business functions.
  • You will find creative freedom and business satisfaction. You’ll have the opportunity to be an entrepreneur in a field you love. Your skills and knowledge will be put to good use. You’ll also gain personal business satisfaction by implementing your ideas and working with customers to make your business successful.

Drawbacks of Small Business Ownership

The little boy who was on his first roller-coaster ride said, “I like both the ups and the downs!”

  • Financial risk. It is possible to have limited financial resources in order to start or grow a personal business. To get started, you may have to spend most of your savings and even take out debt. You could be in serious financial trouble if things do not go your way. There is no guarantee of income. In the initial years of the business, there might be times when it isn’t producing enough income to support your daily living expenses.
  • Stress. You are the business owner. There are many things to worry about: competition, employees, bills and equipment breakdowns, customers, and so on. You, as the owner, are responsible for your employees’ well-being.
  • Time commitment. Many business asset disposal relief people start personal business to have more time with their families. Running a business can be very time-consuming. Although you might think you can take your time, the reality is that you might not be able. You’ll likely have less time to yourself than you would if you were church business meeting working for someone else. Many entrepreneurs and small business owners believe that a 40-hour workweek is a myth. See Figure 5.6, “The Entrepreneur’s Workweek”.