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Starting a business is the best feeling in the world…but it can also be very nerve-wracking and stressful. I’m not here to sugar code anything. Today, I’m going to tell you the good, the bad, and the ugly side of starting a business.
The Pros of Starting a Business
Here are the pros and cons of starting a business. Let’s take it from the top with the Ups.
We’re going to discuss the pros and cons of starting a business. One of the main pros of starting a business is that it is yours and you can say you made it happen. Starting a business is such a rewarding experience. If you’ve never really owned anything then starting a business will be a different experience.
The best thing to me about owning your own business is that it’s yours. It doesn’t have to be perfect. Doesn’t have to be making a lot of money or any money at all…because starting a business from scratch is a full-time job.
The money doesn’t start rolling in just because you started the business. It takes a lot of time and effort, which we’ll discuss in the cons section.
Having something that you can call your own like a business is a huge achievement and accomplishment, regardless of how much you’re making with that business.
Not everyone can say they have started a business. I own several businesses and no I’m not rich yet but guess, all those businesses are mine. They have my name on them, they are legalized, and I do make money.
I am a first-generation business owner in my family so for me, being a business owner means so much to me. I plan to grow my business and set it up so that it can be passed down to my brother and my kids. This is how you build generational wealth.
Can Replace Your 9-5
I love the fact that I don’t have to work a 9-5. Rather than working a 9-5 or a regular job, I try to stay focused on my business. I want to be able to work when I want and how I want.
Being my own boss is amazing. I’m not going to lie. The 9-5 life is not for me. I’ve always wanted to be my own boss and live my life on flexible terms.
Maybe you are working a 9-5 but you are sick and tired of the grind that comes with 9-5. Let me tell you, you gotta grind with your own business even more so than you do a 9-5 but it is a different kind of grind and we’ll discuss that a little later.
If you are tired of not having control of your working hours, not getting enough off days, and being underpaid then it may be time to start your own business.
Unless you love your 9-5, starting a business may be the change you need.
Makes Good Money
Depending on the business you start, you can make really good money by starting your own business. You will be amazed at how much money these businesses are out here pulling in.
I mean it is truly something amazing. People are always talking about different markets that are too saturated to make money but I beg to differ.
There is so much money to be made when you start a business. Of course, it is not going to just come easily or overnight. You actually have to work for it.
This goes hand in hand with quitting your 9-5. You may be scared to quit your job because you don’t have any other income.
Or you may have side hustles but the money is not enough or steady enough to rely on. If you want to quit your day job, you should definitely work on starting a business.
Get to Do What You Love
Starting a business is not great just because of the money you stand to make. No, it is also a really good thing because you are doing something you love.
I wish more people would take the big step of starting their own business. There would be a lot fewer unhappy people in the workplace. It is actually becoming a norm to startup a business.
Getting to do what you love is so special. This is not something that everyone experiences. We all have some sort of hobbies and in a room full of people if I were to ask how many would rather be running a business that they love than working a job that they hate, I’m positive over 99% would raise their hands.
Why? Because so many people are unhappy at their current jobs. They are stressed, tired, and burnt out just to name a few. Most jobs require so much of you without really compensating you for your time and hard work.
Even if you are working a high-paid job that you hate, you are still going to feel stressed, burnt out, and tired among other things.
Getting to do what you love is definitely a big deal. Looking back on the time when I started my first business and every business I’ve started since then just does something to me.
It is something so satisfying about working for yourself and getting paid to do the things you enjoy.
Doesn’t Take A Lot of Money to Start
Some businesses cost thousands of dollars just to get things up and off the ground. On the other hand, not every business is this way.
There are a lot of businesses you can start for a few hundred dollars or even less. A service-based business is still a business but it has a lower startup cost than let’s say a product-based business.
The most you’ll have to purchase for a service-based business is software and tools. With a product-based business, you have to purchase inventory, website, tools, software, etc.
If you started something like a dropshipping business you could likely do this for no more than $300. The same is true of Amazon Arbitrage or reselling items on eBay. All you need to do is buy the products and list them on the website and maybe run a few ads for these products to start generating an income.
Have Complete Control
When you start your own business, you have complete control when you own 100% of the business as I do. There is no boss to tell you how to run things and what you can and cannot do. Businesses are regulated by the city and state in which you live but ultimately you still call the shots.
Being in control is not appealing to some people but when you have dealt with horrible management in past jobs, being able to have some say-so over the business makes a world of difference.
I was motivated to start one of my current businesses for the simple fact that I wanted to be better than the last company. I didn’t like how they dealt with me or how they dealt with others. There were just so many red flags with this company and I saw a need to correct these issues by starting a business that would be better than the business with poor management.
The Cons of Starting a Business
Now, let’s explore some of the downs or cons of starting your own business.
It’s A Lot
Starting your own business can be a lot. It can get very overwhelming.
If you are not truly prepared to start a business it is really going to seem like a lot.
You’ll waste so much money trying to get the business going only to fail.
Most people who start businesses on a whim without sitting down and thinking through each and every step, often fail.
Starting a business is not as easy as 123 as some make it seem.
I’m sure you’ve come across the Facebook posts, YouTube videos, and Pinterest pins that say you can make $30k in 30 days with a brand new business.
While I believe this is certainly possible, the issue I have with people putting out this kind of information is that it is not typical.
A lot of the people who make crazy amounts of money in such a short amount of time, they already have money. They can afford to pay thousands a month to run ads, hire a team and purchase large amounts of inventory.
A Bill Before Anything
When you start a business, your business will be a bill before it becomes anything else. You are not going to come on the scene and the money starts falling into your lap unless you are already well known, have a huge following or fan base, and can afford to pay for what you want and need.
When I first started my business, I had no idea what I was doing. And while I put a lot of thought into it, I had no idea about the things that I was failing to think about. I didn’t know that I wasn’t considering things that could truly make or break my business.
You will have to purchase inventory and pay for advertising, storage, software, tools, website design, and website hosting.
I’m telling you all this because I don’t want anyone making the same mistakes I did if they don’t have to. I started each of my businesses without a regular 9-5 job or steady income even. I’ve always worked hard and did freelancing-type work to earn my money.
Money is money but it is definitely harder to fund a business from your own pockets, especially when you don’t have a regular income yourself or you are living off of one income or are on a fixed income.
You are going to find yourself having to put more money into the business before you start to get anything out of it.
When you first start a business, you should be taking at least half of the money you are profiting from and putting it back into your business in some way. Whether you use it to purchase inventory, pay for ads, or buy new equipment, it really doesn’t matter.
You should definitely not be going on a shopping spree every month and spending all of your profits. The business comes first. Why? This is the only way you will start to see results in your business. It takes a lot of sacrifices to run a business and help it to grow at a fast rate.
Getting Business Funding is Difficult
Difficult is not the word. Getting funding for your brand new business is straight-up hard. I’m not going to sugarcoat it because you need to hear this.
I have 3+ businesses and every single one of them has been funded out of my own pockets. No one gave me a loan, business credit card, or even a business line of credit. I had to penny-pinch, scrape and scrap together my coins to buy things that I needed for my business.
And if you don’t have a good personal credit score, a good business credit score, and aren’t making sales in your business every month, you will not qualify for business funding. I’ve even done so much as look for investors to help me but even that comes with a steep price that most new business owners cannot afford.
I’ve applied for financing with equipment such as one of my shirt machines and I couldn’t even get approved for that. So don’t believe people who tell you you don’t need personal credit or good personal credit to get approved for a loan or line of credit.
You need to have all your duckies in a row to get approved for a business loan or line of credit.
Dealing with Difficult Customers
This may not seem like a big deal but I can tell you that customers make all the difference to a business.
Every business has that set of customers that just love to be difficult. They complain about your prices. Order the wrong items and then blame you. These kinds of customers are so hard to satisfy. And when things don’t go their way, they want to drag your name through the mud with bad reviews. Do your best to be fair and accommodating to your customers and don’t worry yourself about those who leave bad reviews for no good reason.
Always remember that we can’t please everyone. I have yet to get a bad review but I know if I stay in business long enough it most likely will happen. This does make your business look bad but it won’t last.
People will continue to buy from you as long as you are doing your best to run an ethical business and keep your customers happy.
Some customers are just difficult and there is nothing you can really do about it but move on.
Starting a business can be so rewarding but it can also take a lot out of you. These are the pros and cons of starting a business. Actually, these are just a handful of the pros and cons.
If you aren’t sure whether you should start a business, read through these pros and cons so you can make an informed decision.
I wish everyone could start a business but starting a business is not for everyone. I’m just being honest. Don’t start a business without thinking it over.