You’ve been thinking about it. “Should I open my own business?” you ask yourself. It sounds like a great idea and it can be the best decision you will ever make. However, there are many factors to consider before setting out on this adventure. As with everything in life, there are pros and cons to consider before making what could be one of the biggest decisions of your life.
According to the U.S. Small Business Administration, half of all new established businesses survive 5 years or more and a third survive 10 years or more. They also state that in 2013, there were 33,212 businesses that went bankrupt. However, that was 7,000 less than in 2012.
If starting a business is high on your list of consideration, research is key. Consider below some pros and cons associated with this major decision.
- Be your own boss – this is a concept that can be appealing especially if you are self-motivated, creative, organized, and enjoy flexibility. This can be attractive if you desire more autonomy in your business decision rather than being told by someone else what to do.
- Sense of ownership – it’s yours! You are the one responsible for success of this exciting adventure. You hear how others may refer to their business as “their baby.” You will nurture, train and grow this business as you would your own child.
- Personal gains by doing something you enjoy – You may have been in a very unsatisfying career and have always had visions of doing something you love. You can choose a hobby or something you are truly passionate about and make a business out of it. How fun it must be to go into work every day doing something that you truly love.
- The fruits of your labor are yours – Generally, when you work for someone else, they will be the ones getting the bigger piece of the pie. When you work for yourself as opposed to someone else, your chances of keeping a bigger share of your earnings is much higher
- May not get paid for long periods of time – A friend of mine has had a small store business for two years and has yet to pay herself. That is not always the case with everyone but putting money back into your business as opposed to in your pocket is generally what can help keep it going.
- Lots of hours – When you own your own business, there is no punching a clock or just working 9 to 5. You do what it takes to get the job done and sometimes that mean extremely long hours.
- No guarantees of success – It is a very high risk opening a business and with a lot of research, you can decide if it is right for you. Just make sure you do your homework before setting out on this journey and hopefully it will be more successful because of your knowledge.
- Expensive – To start up a business requires a significant amount of cash. Keep in mind legal fees, business taxes, marketing, payroll, material costs and benefits.
- Everything falls on your lap – if things aren’t going well, it is up to you. The owner will generally take the brunt and heat when times are tough.
There is so much to ponder and consider when deciding if opening your own business is right for you. Check out our knowledge center and blog at Maxfilings to help you make important decisions such as deciding whether or not to become an LLC.
We can help you with incorporating your business, and have partner firms that can help with marketing.
If you do decide to embark on the business owning adventure, whether you choose to use our services or not, we wish you nothing but the very best!