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Pros and Cons of Running A Business

Updated on February 28, 2017

Make a Decision

Running a business cost a lot of money, patience and hard work. Perseverance pays off in the business world.
Running a business cost a lot of money, patience and hard work. Perseverance pays off in the business world. | Source
Their are many pros and cons to running a small  Business. Weigh out all options before making rash decisions.,
Their are many pros and cons to running a small Business. Weigh out all options before making rash decisions., | Source
With proper advertising and hard work anyone can start up a successful small business.
With proper advertising and hard work anyone can start up a successful small business. | Source

Have You Had One?

Have you ever had your own company?

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The Good and The Bad

Pros of Owning A Business:
1. Set your own hours-This is an advantage because, you can schedule your own off days and use those days to run errands. Of course, if you want your company to be successful, you might want to schedule yourself a lot of hours in the beginning. Setting up your store is a lot of work especially in the beginning. Getting everything just perfect for your customers will make them feel special. Pricing items and deciding which social media network site to use are all apart of the way to build your business and make it a lasting one.

2. You Are The Boss-It is nice to be your own boss because, you don't have the pressure of performing for a superior. On the other hand, the company's success or failure depends on your performance. You do have the pressure of making your company survive. So, in a way, you are in competition with yourself. Being friendly when patrons come in the store and having the best merchandise possible, are ways to be sure that you have repeat customers. Repeat customers are good for business and that in turn, makes you proud to be your own boss.

3. More control over income-This is a double edged sword. The money is not guaranteed like it is with a corporate job. At the same time, you can advertise among other things to skyrocket your income. It may be that you have to wait on advertising until you get a little bit more established. The good thing about working from home and having the items from your home, you can use your home site as the location of the store. Most media networks we go through, our items can be shipped through the mail so, we ship them as quickly as possible. This also has a direct impact on the income.

4. Creative control-You have control over the direction of the company such as the logos, shirt designs and business cards. Instead of decisions coming from the corporate office, you make all the final decisions. This would include the company logo. You can control the advertising as well such as billboards, television commercials, newspapers, business cards and don't forget the flyers.

5. A pro in my opinion of being your own boss, is that you have control over who gets hired and fired. You may want to hire family and friends, this can be good and bad. I would advise not to hire family. Then, if there becomes a situation that is not rectifiable, then one of the two employees are going to chose to leave. If someone does not work out, you have the power to remove that person from their position. I would avoid hiring family unless, it is to just get you started until you can hire someone.

6. Career Path-This is why many business owners like what they do because, they are able to direct their choice of career. There are all kinds of different business owners from, restaurant owners, privately owned deli's, fast food restaurants and many more in between. You have to find your niche.

7. Directing employees-Another pro in my opinion, is similar to being a manager. Like being a manager you have to delegate.different responsibilities, make sure employees are in the right place at the right time and make sure they have what they need to perform their jobs.

Cons of Owning A Business:

1. Expenses-Office supplies and equipment that are needed for the business and these are expenses that you do not need to forget when starting your business as well as filing your taxes.

2. Advertisement-When working for a company such as a retail outlet or grocery store, you do not have to worry about advertising. You have to pay for advertising with your own money. When cutting into your own money, advertising may be looked at a little differently.

3. Income is not guaranteed-This is self explanatory. If you do not get to work, you do not get paid. If you do not get paid neither do the bills. It is a trickle down effect. Although through word of mouth you can increase your company's income but, nothing is guaranteed.

4. Company Incentives-Some cons of owning a business are not getting the company bonuses, medical insurance (if your company has only a few employees), dental insurance, paid vacation time, 401K/retirement incentive. These are not necessarily bad but, may really need to be considered if you are thinking of starting a company of your own and leaving the "9-5" job.

5. Taxes-Always a sore subject among any American, is tax time. Taxes for a company are hard to keep up with especially if you do not keep up with them quarterly. You have to tax your employees and this leads to more taxes at the end of the year.

Successful Entrepreneurs:
1. P.T. Barnum: He created the Barnum and Bailey's Circus and he also helped create modern advertising. He called his circus, the greatest show on earth.

2. Ray Croc: He started the largest chain of fast food restaurants better known as McDonald's. It started out small and grew to great proportions.

3. Ross Perot: He invented (EDS) or electronic data systems. It is used by Medicaid and Medicare and it has made him a billionaire.

4. Steve Jobs: He made the first home computer with the Apple company. He started from nothing in his garage and became a billionaire.

5. Henry Ford: He made the first automobile for people to purchase.

If you like being the boss or being in control of things, then you should run your own business as long as you have the capital to start it. On the other hand, if you just want to work hard physically and have less mental stress, then owning your own business would be the route to take.

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© 2013 Buster Johnson


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    • wallflowereyes profile image

      wallflowereyes 4 years ago from New York

      Very informative! There are definitely many pros and cons to owning your own business. Although, I feel the pros outweigh the cons! It takes determination, but anything is possible.

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