Let us know the pros and cons of starting a business. Do you have an idea? Do you want to start a business? Now, are you weighing the pros and cons of business? Excellent!
Starting a business is a roller coaster, we all know that. In this article, we will give you real-time insights based on real experience noted from the person who has faced highs and lows of business.
Let’s first face the cons of starting a business
You will have to work harder:
People who jump into business are able to free themselves from 9-5 hustle only to work day and night. You will be responsible to drive your business hence you will have to work for longer hours. Entrepreneurs enjoy doing this because they get to work on their passion.
You can wrap your work within 5 hours as well but this amount of time is not enough in the initial stage for your business. In the beginning, many works for 14-18 hours to make the venture successful. According to CNBC, Gary Vaynerchuk- self-made millionaire- founder and CEO of a digital marketing company, VaynerMedia says, “you have made a decision that does not allow you, in year one, anytime to do anything but to build your business. Ever-minute – call it 18 hours a day out of 24 – if you want this to be successful, needs to be allocated for your business”.
You will have to take risky decisions:
No matter how calculative you are, you will have to take risky decisions at times. Business owners tend to have structured business models that minimize the risk but cannot eliminate risk. Risk-taking is part and parcel of running a small business
Since everything depends on you so the decisions might impact you severely. If the decision does not work in the startup owner favour sometimes it leads to mental issues and causes problems in the relationship.
You might not get good returns for a while:
Depending on your venture, you might not get a penny in the first year of your business. If you want to kickstart a product-based business you will have to use your savings. The initial investment in a service-based business can be less, but you will need capital.
Once you start getting returns, you will be the last person to get the paycheck. In the initials stage, what you earn get invested into building the business. This might lead to not being able to spend money on family needs. Make sure your family is prepared for upcoming challenges.
No one to guide you:
You will not have a boss to tell you what to do. This seems liberating but at times sucks when you are not able to figure out steps on your own. If you have funds, you can turn to a business coach for advice and feedback. Puvanesvarar Mailvaganam gives first business coaching for free. Book your call here Now.
Figuring things on their own can sometimes lead to critical mistakes. You can look up to your mentors and colleagues to help you in taking decisions and feedback.
Few things are not in your hands such as the economy of your country, natural disasters, sudden decisions of your employee and so on. Hence, you cannot be certain about the success of business in future. Embrace yourself for uncertainty.
Failure sucks unbelievably more:
A business fails due to many reasons such as lack of planning, overestimation, unrealistic goals, bad decisions, inability to properly guide employees, unwillingness to embrace changes, inability to delegate tasks at right time. However, more than 50% of the business fails during the first five years due to a lack of regular cash flow.
It sucks to have nothing once the business collapses. You might lose your time and money if you are not taking the right steps. It can stress you a lot and impact your health. From day 1 make sure your cash flow, planning and execution are on point.
Here are the pros of starting a business:
You get to work on your passion:
Most people jump into business because it makes them happy to work on their passion and bring change. This pushes business owners to work for longer hours and overcome hurdles.
You have the freedom to work at your will:
Running a business gives you the freedom to work at your will. You can work whenever you want and if possible can operate your business from wherever you want. You can take leaves at your will.
You have the freedom to take your own decision:
You get to decide with whom to work. Starting a business gives you the freedom to decide the next step for your business. It allows you to take control of every aspect of your business. You get to decide how many figures to hit and you can make a roadmap accordingly.
Your finances can grow a lot:
If your venture gets successful, your life gets easier and happier. You do not have to worry about time and money anymore. You can quickly get to ensure financial stability.
If interested you can pass the business to your lineage. This ensures the financial stability of your next generation as well. You get the opportunity to create equity that you can keep or sell or pass to your next generation.
One of the best advantages of running a business is you get the opportunity to help the world. Your idea can help to bridge the gap in the market. You get the privilege to create opportunities for others. You can help people by employing them in your business. Your innovations help the world to be a better place.
Starting a business is a fulfilling endeavour. However, it is embedded with pros and cons. Today, you have the opportunity to start a business with zero investments and in the process, you can invest to expand. Before jumping in make sure you have the ability to face the advantages as well as disadvantages of running a business. If you need your industry-specific insight you can talk to Puvanesvarar Mailvaganam.