Starting Your Own Business - The Pros and Cons of Ownership

Before embarking on any life altering decision, it can bethere are more. Tailor your list to the business you plan
in your best interest to list out the pros and conson starting as well as your current lifestyle (budget,
associated with the change. It is a simple strategy, butfamily, expenses). Some of the points listed under "pro"
one that is invaluable in helping you make that finalcould easily be switched into the "con" section, if you
decision. Teenagers and parents do it when decidinggive enough thought to what they truly mean.
on which college the kids want to attend. As you areFor example, the joy of being your own boss can
at your own crossroads in life, utilizing this methodquickly lose its luster once you realize all that entails.
should help you decide if you are ready to take on theYou will be your own boss, but that does not equate
responsibility of owning and managing your ownto you sitting in a corner office enjoying a lush life on
business.the top floor. When you are starting a business you
Upon first thought, you might have an idea of which listmust become the "go to guy" or Renaissance man of
is likely to be longer, but actually sitting down and takingbusiness. You may have excelled in one particular
the time to think it through might cause your previousarea in your previous job, but you must now take on
assumption to change. You want to be honest withmany new roles. They may not be an area you have
the analysis, sugarcoating a con is not going to make itany particular interest in, but you must develop an
any easier an obstacle to overcome. You are lookinginterest in it. This is your business, and with that comes
at a complete change in lifestyle and this kind ofa great deal of responsibility.
change demands reasonable thought and time to askFor those starting their own home-based business,
the right questions. Going through this process will givethere are a number of other pros and cons unique to
you a good sense of the challenges - and the rewardsthat decision. Some of the pros associated with a
- of owning your own business.home-based business are as follows:
Some of the more popular reasons for owning yourLower startup costs
own business are as follows:Costs associated with renting office space and utility
-Being your own bossbills are a non-issue
-The chance to make more money than you canShorter commute, which equates to less money spent
make working for someone elseon gas
-A different kind of job securityMore flexible schedule (depending on type of business
-Working in a field you enjoy - greater job satisfactionyou are conducting)
-Expanding your knowledge of businessThe cons include:
-The personal satisfaction of creating and running aLegitimizing your business with vendors or employees
successful businesscan be difficult
Sounds promising, doesn't it? The list of pros isAccessibility to suppliers can be difficult
extremely attractive, but you cannot allow yourself toSpace can become an issue as the business expands
be so easily swayed by the list. In life, there are alwaysIn home interruptions (family, friends, children).
two sides of the coin, and looking at that other side isOnce you have given a great deal of thought to the
something that some choose to overlook. Starting aparticular items listed above, you will have a better idea
business cannot be a cavalier decision, that will likelyif you are ready to start your own business. It is
end in your ruin. Take a look at some of the mostestimated that of all U.S. startup companies, only 30
common challenges in owning your own business:percent are still in business after five years, so plan
-Financial and personal risk factors are greatahead to ensure that you are in that group. Once you
-Overseeing all aspects of your business can be timereach the point of making a final decision, and if that
consuming and tediousdecision involves you enthusiastically deciding to start
-Unpleasant tasks such as demotions, firing employees,your own business, congratulations! It will be a difficult
or bookkeeping are part of your job descriptiontask, but with the right attitude and certain qualities, you
-Unsteady income, especially when starting outcan tackle the obstacles and start building a successful
Those are just a few examples of some commonbusiness.
issues encountered when creating the pro/con list, but