What are the Pros and Cons of Starting Your Own Business?

Pros

  • You get to be your own boss.
  • You get to do something you really enjoy.
  • Hard work and long hours directly benefit you, rather than increase profits for someone else.
  • Earning and growth potential are far less limited.
  • A new venture is exciting.
  • Running a business will provide endless variety, challenges, and opportunities to learn.


Cons

  • Business ownership is demanding. The average entrepreneur may work 50 or more hours per week.
  • You need to wear many different hats and perform a wide variety of activities from sweeping the floors, to bookkeeping, to personnel matters.
  • You may encounter difficult customers and suppliers, personnel problems, and cash flow shortages.
  • A large number of new businesses fail in their first year. The financial risks may involve a personal guarantee for the second mortgage on your home.