Just over 99 percent of US businesses are small businesses. While not all are considered startups, approximately 50 percent of small businesses will fail within their first five years. The reasons for failure vary from things that are out of business owners’ control, such as economic uncertainty and decline in customer spending, to company issues, such as the cost of employee salaries and technology. When it comes to starting a business, there’s no guarantee that things will work out as expected, or at all, yet entrepreneurs everywhere still put in the money and effort to start a business and run it every day.
Despite the risk of failure, there are plenty of things that can be done to help your business grow and encourage its longevity. From working on marketing to get more Instagram followers fast, establish a presence, and build credibility to conserving cash and being careful about cash flow, there are ways to safeguard your startup company. Even with those safeguards in place, though, running a business takes a lot of work, and depending on your situation, the pros may not outweigh the cons.
The Cons of Starting Your Own Business
There’s always a risk. When you start your own business, there’s a lot of risk that comes with it. You lose a steady paycheck, you give up a lot of time and energy to something that may not work out, you sacrifice your own money to get things started, and in some cases, you may take on some serious debt. The risks go beyond financial too—there are legal and economic risks, as well as other factors that may be enough to deter you from starting a business of your own.
You may not profit right away. Earning potential is a big reason that people choose to start their own business; however, not everyone realizes that you may not earn a profit right away. Sometimes it takes years before a business will turn a profit which means that you may not be able to pay yourself a salary and will have to rely on your savings and any loans that you can get to sustain yourself and your business until things turn around.
It takes a lot of time and energy. While some entrepreneurs may have a realistic idea of the time and energy that goes into starting a business, others may not realize just how much a business demands from you. Too often, people will dream of quitting their day jobs and running a business of their own so that they can make money on their terms and have the flexibility that they want. In reality, though, you’ll likely spend more time operating and growing your own business than you ever spent in the office at your day job.
The Pros of Starting Your Own Business
You have unlimited earning potential. Although your business may not be profitable right away and although there is financial risk involved in starting a business of your own, the earning potential that you have when you launch your own company is virtually unlimited. Because you are the owner/operator, there’s no one to tell you that you’re only worth so much, there’s no one to limit how much you can sell, and there’s no one to hold you or your company back. You can earn as much as possible, giving you an unlimited earning potential to work toward.
You are your own boss. Although running your own company may require a lot of your time and energy, there’s nothing that compares to being your own boss. Even if you do have to work extra hours, you get to decide when those hours are put in and where you put them in. That means that you can work while on vacation without limitation, or you can stay up late and get things done at night to spend your morning at the gym or sleeping in.
You are in control. It can be frustrating to be part of a company but not have the opportunity to give input that you know can make a difference and add value to where you are working. When you own your own company, though, you are in complete control and get to make all of the executive decisions. You get to decide when and how your company moves forward, and you get to decide what’s best for you and your business.
Is it Worth it Overall?
Whether or not starting your own business is worth it will depend on your personal opinion, personal situation, and how motivated and driven you are. While the cons may outweigh the pros now, you might find that later down the road, the risk of starting your own business is well worth it. Or, perhaps, now is the perfect time for you to get started and, despite the cons, the pros are more than worth the risk. In your opinion, is it worth starting your own business—why or why not?