What are the pros and cons of running a business?
I have had thoughts of starting a business, I know of a place where I can get an office space, but how would I begin, who in my town would I go to and start this business. How would running my business go, what plans should I have for the present and future, and most of all what should I do, what should my business be about?
- You answer to yourself as boss, setting your own hours, work, etc.
- If profitable, you own the bulk of the cut of any profits and how to divvy it up
- If it's an area you're passionate about, you will be energetic working "for yourself and something you love"
- There may be tax benefits (tbd), as you invest in your business, with potential industry or other grants (city, state, federal) you'd need to investigate
- You will be the center of responsibility
- Heavy on risk. If expenses are higher than cost, you foot the bill and lose money. If liability or litigation occurs, you could lose the entire business (worse, if you're acting only as an individual, and not as a limited liability corporation or something else that separates you from the liability)
- Expect long hours, heavy work, and having to roll up your sleeves to do multiple roles
- As you grow, you'll need to think about how to balance, and hire (potentially managing others, which has its own challenges - and rewards)
- Think about how you will make people aware of your product or business; marketing is a big part of small businesses getting actual business
1. Before you do anything else make sure you have a passion for the business you are starting. This is key for a successful business and will enable you to grow your business exponentially. If you have no idea that is ok! I would encourage you to think/read about your passions. An excellent book to help you "kick start" the thought process is Dream Big by Bob Goff. This will not only help with ideas but the book will open your mind with possibilities you may of never thought about.
2. Decide how you want your business to be structured. Do you want to set your business up as an Inc, LLC, LTD, Corp etc.? This is key in protecting you and legally setting your business up with the state. Go to Google and type in the state you want to register your business in and look up the Secretary of State (SOS) for that state. Registering your business with the state is one of the first steps you should take in starting your own business.
3. Don't worry about office space for now. Many companies are now working from home. Working from home would save you money on rent/utilities. You can always set up a P.O. Box for receiving your mail. If you need to meet with potential customers/clients you could rent a shared office space to conduct those meetings. One of the best pieces of advice I can give is always have a business plan/proposal ready. This way if ever needed you are not scrambling to make/edit documents.
The great thing about business is there are so many possibilities! Good luck to you on the journey!
Daniel recommends the following next steps:
To start a business, think about what you're good at that gives you the most satisfaction. Doing what you love is ideal.
Next, write down what you'd like to help other people with, based on your knowledge and experience. Education can help if you want to pursue a business from your education, but it's not necessary.
What's your "Why"? Knowing why you want to start this particular business will keep you grounded in such business when things get challenging along the way.
Once you decide why you want to start a business in a particular niche, search online for others who are currently doing that business. Follow them to see what life is like in that business. Even reach out to them with questions.
If you want to move forward in that business, find out if you will need more training or certifications for that business.
Learn as much as you can about that particular niche of interest.
Begin the business at home first to build a clientele before investing in office space to save money and time.
Make a list of how you can help people with your business, then read daily posts from people you follow who are living that business to inspire you to take the next step.
I hope this helps.
Anthony Kofi Hene-Amoah
1. Consideration of the type of business.
2. Consideration of the goal and objectives.
1. Job security.
2. Improvement in your finances.
3. You are your own "boss".
1. Unfavourable marketing conditions.
2. Unfavourable government policies.
3. Competition with other organizations.
4. Thinking of failure.
5. Inadequate knowledge in the business.
6. Inadequate capital/finances.
Best regards in your vision.
Below are my suggestions :
1. Think about what industries you would like to start on. E.g. anything you have interest on or strength
2. Analyze the business, e.g. any entry barrier, competition status, substitute, etc.
3. Take the relevant course in the college
4. Try to work in the industry to understand the business model and establish people network
5. Establish the business online first if possible
To run a business, you may not have a stable income. You may need to have sufficient fund at the startup. This is different from being an employee.
Hope this helps! Good Luck!