Advantages and Disadvantages of Business Ownership and Starting a Business

There are several advantages that, generally speaking, come with success in business ownership:

1. Independence. As a business owner, you're your own boss.
2. Lifestyle. Because you're in charge, you decide when and where you want to work.
3. Financial rewards. In spite of high financial risk, running your own business gives you a chance to make more money than if you were employed by someone else.
4. Learning opportunities. As a business owner, you'll be involved in all aspects of your business.
5. Creative freedom and personal satisfaction. As a business owner, you'll be able to work in a field that you really enjoy, and you'll gain personal satisfaction from watching your business succeed.

There are also a number of potential disadvantages to consider in deciding whether to start a small business:

1. Financial risk. The financial resources needed to start and grow a business can be extensive, and if things don't go well, you may face substantial financial loss. In addition, you'll have no guaranteed income.
2. Stress. You'll have a bewildering array of things to worry about - competition, employees, bills, equipment breakdowns, customer problems.
3. Time commitment. Running a business is extremely time-consuming. In fact, you'll probably have less free time than you'd have working for someone else.
4. Undesirable duties. You'll be responsible for either doing or overseeing just about everything that needs to be done, and you'll probably have to perform some unpleasant tasks, like firing people.