Lots of people say that starting your own business is promising and rewarding. It is not wrong but it also doesn’t mean that once you decide to jump into entrepreneurship, you will become successful. Starting your own business has its challenges and obstacles you need to overcome strategically. As for advantages, it is true that there are many of them. For example, you are independent to take control over your business as well as making decision, financial reward can be excellent compared to when you work for someone, the prestige of the idea of being the boss is invaluable, and more opportunities to make a contribution such as help improving local economy.
Disadvantages of starting your own business
Alongside with many advantages, there are also some disadvantages of starting your own business you should know before truly dive into entrepreneurship world. Here are several disadvantages for consideration.
They are not things you can always avoid all the time. They exist in business no matter how insignificant they might appear. You must face risks with the right strategy. If you cannot remove the risks, at least you should find a way to minimize them. There are various risks you will face when you decide to run your own business. The most obvious one is financial risk. However, sometimes it can be worth it to take the risk. To decide whether to take the risks or not, you need to calculate every possibility.
This is something you should be willing to give if you decide to run your own business. In the beginning of your business especially, you may not be able to hire many employee due to financial limit. This results in more time you should spend to finish some works. Many entrepreneurs work more than eight hours a day in the beginning of their business. If you cannot overcome time issues, this may strain your personal matter such as relationship with family and friends.
This is inevitable thing when it comes to entrepreneurship. No matter how meticulous you are with business plan making and research, there will always be external factors or shifts that can turn your business go wrong. For example, market is not stagnant. It is dynamic aspect in business you cannot predict with 100% accuracy. Sometimes, business can experience crisis due to unexpected downturns. You have to be ready with the backup plan if you want to survive from the unexpected in business.
This is one of the most common factors that make entrepreneur fail to start their own business in the first two years. No matter how small you start your business, you need sufficient capital. You also need to make sure your business financial cash flow grow steadily.
Those are disadvantages of starting your own business. However, those are not things you cannot overcome. Those are challenges you should face if you want your business to grow successfully. By the right planning and strategic methods, it is possible to have a successful business in the long run.