You sit at your desk every single day and you just are not satisfied. Also, you do the same repetitive tasks. And you hate your boss. You just want to live your dream. A small business may be the opportunity you are seeking to free yourself from the 9-to-5. Small business ownership is very rewarding, but it is not without its challenges. Consider the needs of small business owners and what running a business entails.
Consider the Gains as a Small Business Owner
As a small business owner, you can gain a lot personally and professionally. Also, you must give up a lot. Does the cost of small business ownership outweigh the benefits? You decide. Here are several things you can gain or give up as a small business owner.
You Pay Yourself
One of the best parts of being a small business owner is you can pay yourself on your schedule. Having greater access to your income stream is a significant benefit and can help motivate you to work harder.
You Do What You Want
Working for “the man” is difficult. It is tough to do work that you are not passionate about. However, small business owners often pursue businesses that they love. You make your product or service, and complete it on your own time.
You Set Your Schedule
Part of doing what you want is that you can set your schedule as you wish. Take a late lunch, leave early for a doctor’s appointment – no negotiation required, just go!
You Can Create Passive Income
Passive income allows you to generate money without actively having to work for it. And one of the best ways to do that is to outsource services that can help you build your business like blog writing.
You Gain New Skills
As a business owner, you have the opportunity to hone your skills in your craft. You can develop yourself into an expert in your field of work. And you would not have this opportunity working a regular day job.
Your Days Are Never Boring
Tired of the same old routine every day at work. As a small business owner, you gain the ability to constantly change your day-to-day routine. And this regular change will keep you energized as you work towards your business goals.
What You Give Up As a Small Business Owner
Now that we’ve explored all the potential gains of owning a small business. Hence, it is time to think about what you might give up.
Your Valuable Time
When you own a small business, you spend a lot of time working towards it – a lot of unpaid time. You must consider the value of your evenings and weekends when you are a small business owner.
Your Precious Resources
Unless you have an endless funnel to a venture capitalist or a great inheritance, you likely do not have unlimited financial resources. Getting capital or getting loans can be a challenge. And you may find you are supporting your business with your own dollars.
You Lose Employer Benefits
As an employee of a large company, you will often receive retirement matching, health insurance, and other group insurance benefits. Those opportunities are more difficult to come by as a small business owner. And you will have to pay both the employer and employee share of the cost.
You Have No Safety Net
When you own a small business, there’s no guarantee that your product or service will sell. And if your business’ success depends upon large industries, your profits can be affected by activities that occur outside of your control.
You Have to Work Hard
You cannot spend hours a day reviewing the top five new stories of the day or checking out the latest viral video when you own a business. Also, you have to stay focused on the task at hand. So, as a small business owner you give up the time you wasted at work, but that’s probably a gain after all.
Your Taxes Are No Longer Simple
Owning a business includes a myriad of laws, regulations and tax obligations. And you must consider business taxes, your personal income taxes, sales tax, employee taxes, and even local taxes. It is best to get a tax accountant at this point. Although you have more complicated taxes, it also includes some benefit. Also, there are advantages to being a small business owner in that you gain income tax breaks. You can deduct cell phone service, the internet, a home office. And you can even deduct your expenses toward the web and hosting services.
Regardless of the costs and benefits, owning a small business requires some planning. One of the first things you should do is to determine what type of business is right for you. Then, you should prepare an analysis to determine if you can profit from your idea. Also, you should research financing for business (or whether self-financing is feasible). Lastly, you should develop a marketing and business plan. And this will help you get off to a great start as you pursue your small business dream.
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