Setting up your own trading business is a tempting idea. Just picture this: you, managing your own business where you’re the boss, maybe even hiring some employees of your own someday – simply imagining it can make anyone who wants to be an entrepreneur smile.
However, no matter how enticing the thought of managing your own business sounds, just like everything else – managing your own enterprise isn’t as easy as it seems; starting up your own trade business also has its cons.
If you’re planning on establishing your own business, it’s best to analyse the advantages and disadvantages you may come across so you can make up your mind and be truly prepared for what’s to come.
Let’s start with the pros of starting your own business:
- Being your own boss – ‘Being your own boss’ doesn’t mean feeling power or importance over your employees, but rather being free from anyone ordering you to do anything. It means being independent in implementing your ideas and doing your work without anyone telling you what to do.
- Being able to make changes to your business quickly – Another advantage of having your own business is the ability to swiftly adjust your business if needed. For an example, if you just found out that you have to change your working hours (maybe lengthen it) because of business needs, you can do as you please in an instant. There’s no need for you to get approvals or permissions from anyone.
- Being able to adjust to your needs – If you can make necessary adjustments when your business calls for it, of course you can adjust your business according to your needs, too. If you need more time for resting everyday because of an illness, then you can simply adjust your business hours without the need to produce an official medical recommendation from a physician.
- Being able to enhance and widen your skills – If you will start a business alone, then you’ll get an opportunity to enhance your skills on many fields. You can improve on your management skills since you’ll handle your own business. You can work on your marketing skills since you’ll be the one to promote your business. You can enhance your recruitment skills as you will carefully screen, choose, and hire people who will work for you.
Now that we’ve established some of the pros of having your own business, let’s discuss the cons.
- Being your own boss – Yes, being your own boss can be an advantage as well as a disadvantage. Being the boss means all the responsibilities of decision making fall into your hands.
- Playing different roles at the same time – Although running your own business by yourself means a chance to utilise and enhance your marketing, advertising, management, and hiring skills, all of these roles may mean a lot of work. Excellent time management will be critical. Performing a lot of different work can also be stressful, so you need to be able to handle stress well.
- Absence of benefits – Once you run your own business you won’t have the free company benefits you once enjoyed as a regular employee such as free dental and health benefits. You would have to start paying for your own health insurance. Another downside is having minimal time for vacations or days off. Running a business requires a lot of time and effort that you may not have enough time to take long vacations, especially when your business is new and you have no one to entrust its management to.
Running an enterprise is not an easy job. Having knowledge of what to expect, as well as getting familiar with business management’s up and down sides can aid you in making an informed decision. If you believe that the benefits outweigh the disadvantages, then operating your own business may just be for you.