Advantages of Starting Your Own Business
There are so many advantages associated with starting your own business as opposed to working for someone. I am one of those people who think that the best thing a man can do for himself is to start his or her own business so that he or she doesn’t wake up every morning to work for other people. You are your own boss when you run your own business. And when you run the business successfully, you do not have to share the profits with anybody. This means that you stand a higher chance of becoming richer as an entrepreneur than as an employee.
If you have a great business idea, you can easily start your own business with a very modest capital. While starting a business can be costly, you really don’t need to have millions of dollars before you can start a business. Start something small, and if it is viable, with time it will grow into a larger operation. Remember that the multibillion dollar company Apple Inc. was started by Steve Jobs and Steve Wozniak in Steve's garage. Today I guess we all know how much Apple Inc. is worth.
Personally I think that a person can become a very successful entrepreneur if he or she has a brilliant business idea, a good amount of determination and perseverance and last but not least – a decent amount of capital.
As a result of increases in technology, starting a business isn’t as expensive and complex as it used to be so many years ago. Technology has made it possible for people to run businesses without even needing offices. These types of businesses are called home-based businesses. And thanks to the internet, you can run an online home-based business from the comfort of your home. Today, millions of people all over the world (including myself) run online home-based business.
Reasons why you should start your own business
These are some of the biggest advantages of starting your own business:
- You are your own boss. There is nothing more rewarding than being the boss and not constantly saying “yes sir” to someone and being told what to do all the time. When the business you work in is yours, you not only work independently but you also do not have to report to anyone. We all know how superiors at work and bosses can sometimes be monsters. You avoid all that by starting your own business.
- You are the boss of other people. Besides being your own boss, you can be other people’s boss. If your business grows to the point where you need other people to help you in it, you are definitely going to start employing workers because you simply cannot do all the work by yourself. This automatically makes you the boss of the workers you employ to work for you. And instead of constantly saying “yes sir” to others and constantly being told what to do and what not to do, you are going to have people say “yes sir” or “yes madam” to you simply because you are their boss.
- You make all the decisions at work: Since starting your own business makes you not only the owner of the business but also the boss and manager of the business, you get the privilege and authority to make all the decisions at work. You decide how the business should operate. You can make a decision and immediately put it into effect without consulting anybody or asking permission from anyone. And because of how fast you can make decisions, you respond effectively to immediate situations. You can also take decisions that will be in the best interest of your business and implement those decisions immediately, thereby growing your business.
- You have very flexible working hours. This means that you can go to work whenever you deem appropriate. Some people even run their businesses from the comfort of their homes, which means they don’t even have to step out of their homes to work. You can also stay at work for as long as you like. But we all know this isn’t possible when you are an employee and working for someone. Your employers would expect you to report to work at a certain time and close at a certain time. If you report to work late, there are consequences to be faced. I have seen cases where people get fired from their workplaces just for reporting to work some minutes late.
- You enhance your financial position massively: Many people don’t know this, but a person’s chances of becoming wealthier are higher when he works for himself than when he works for others. You simply cannot become the richest man in the world by being an employee. It doesn’t work that way. Since time immemorial, all the richest people in the world have worked for themselves and for no one else. This is the great thing about starting your own business. Once the business is yours, you enjoy the profits accruing from the business alone. Your potential income is basically unlimited. You can make as much money as you want providing you are willing to work hard and take advantage of opportunities when they come your way.
- You have job security. Another great advantage of starting your own business is the fact that it can give you job security unlike when you work for someone else. When you work for someone else, you can easily lose your job as a result of getting fired or just being laid-off simply because your employer thinks there isn’t enough work for you to do. You avoid this if you own the business.
Besides all the advantages mentioned above, it is always enormously rewarding and fulfilling to start your own business and operate it successfully. The mere thought that the business is all yours and all the workers working in it are your employees, can leave you with a deep sense of fulfillment that makes life more worthwhile. And on top of all these you are going to be respected by your workers and community.
Starting your own business helps others too
Most times when we think of the advantages of starting a business, we tend to forget that these benefits are not enjoyed by ourselves alone and that other people and even the society that we live in can benefit from this. Here are some of the ways that starting your own business can help others, your community, and your country as a whole:
- Employment avenues: When you start a business, you don’t only give yourself employment but you also give others employment. Majority of sole trader businesses eventually grow to the point where the person who started the business employs other people to work for him or her. By giving people employment, you are not only improving their lives but also playing a major role in solving the unemployment problem in your community and country, thereby contributing towards the economic development of your country.
- You generate revenue for the government: Besides providing employment for other people, your business pays taxes to the government. And taxes are the biggest source of revenue for every government. These monies eventually end up being used by the government in financing developmental projects in the country such as the construction of roads and building of schools and hospitals. All these things help the economic development of your nation. This is the reason why governments encourage people to engage in entrepreneurial activities.
Readers should know that the more entrepreneurial activities (successful ones) go on in a country, the more the lives of the people in the country are changed positively (more people get jobs to do) and the more the country moves forward.
The most common type of business unit operated by people starting their own businesses
Sole trader or the one-person business is the type of business unit that majority of people who start their own businesses venture into. It is called the one-man or one-person business because it is normally owned and run by a single person. The sole trader is considered the most common type of business unit all over the world – especially in developing countries. And it is also the oldest of all business units. Many large and successful businesses all over the world started as one-person businesses before becoming the billion-dollar businesses that they are today. A good example of a one-man or one-person business is the convenience store in your neighborhood. Other examples include: home-based businesses, a doctor who operates his own clinic, a farmer who has his own farm, shop owners, etc.
One-person businesses or sole traders are not very difficult to form mainly because most of them do not require much paper work or legal procedures. For example, opening your own corner shop doesn’t require much paper work. In addition to this, one-man businesses can be started with very little capital as compared to other units of businesses such as partnerships and companies.
These are the reasons why the one-person business or the sole trader is the ideal business unit for most entrepreneurs.
I have just told you of the numerous advantages of starting your own business. But I think I also have the duty to inform you that despite all these advantages, starting your own business isn’t a walk in the park. There are certain drawbacks such as financial risks, stress and working for long hours. But of course you already knew that every good thing on Earth has disadvantages too, and entrepreneurship is no exception.
But I believe that if you mix a good business idea with sufficient capital, determination, perseverance and good management of both time and resources, you massively increase your chances of succeeding as an entrepreneur.