Pros and cons of opening your own business

Running your own business is a big decision in your professional career no matter what you do for a living. But if it pays off, it could be the most rewarding experience of your life. You will need to have a passion for what you did and put in the hard yards. But at the end of the day, you can look back and say with great satisfaction, ‘that business in mine’. If you are on the fence, this blog could help you understand the pros and cons of business and touch on what you need to run a business.

Pro: Being your own boss

Being your own boss will be perhaps the biggest change to your working environment and habits. No longer will you have someone looking over you impacting your decisions and you’ll finally be able to make the big calls and follow your own initiative. This will make the wins that much sweeter as your success will stem from your own skills and choices.

Con: Everything falls back on you

The con of being your own boss is that you will be the last line of defense when a problem arises. If something comes up that’s urgent, you may need to drop what you’re doing and fix it yourself no matter if it’s six in the morning or a Friday night. But while your role comes with a new level of accountability as all decisions ultimately fall back on you, it will also give you the opportunity to learn from your mistakes making you a wiser and more seasoned business owner.

Pro: Building your customer base

One of the advantages of doing business is building up a regular customer base. This will likely be one of the most rewarding aspects of starting up your own business. If you have an idea that you want to share with the world, you will feel vindicated that other people want to share in that experience with you. Humans crave connection no matter what industry you’re in and finding people who connect with your ideas is a wonderful feeling.

Con: Your pay may be inconsistent

One thing that will initially make you miss your regular 9-5 job is the inconsistent salary that comes with owning your own business. Especially at the start of your small business journey, your paycheck can be extremely inconsistent. You will be entirely dependent on your ability to get the job done and bring in the dough, and this can be tough if your business and its customer base are still in their infancy. But if you develop a business plan and stick to your goals your paycheck will likely get more consistent over time.

Pro: You get to work towards your passion

One reason to start a business is because you are passionate about what you do. They say if you love what you do for work then you’ll never have to work a day in your life, and you could be on that journey towards career satisfaction by starting your own business.  If you know your skillset inside and out and have the drive and vision to succeed, you could push your business and yourself to be considered by your peers as a leader in your field.

Con: You have to wear many hats

One of the things that you’ll quickly learn when starting a business is that you’ll have to learn many new skills outside of your area of expertise. While you could view this as a con, broadening your skillset will make you a more effective business owner in the long run. From learning how to navigate accounting software to ensure you and your employees get paid to learning the benefits of social media and building a website, there are countless skills for you to sharpen up.

Another hat you may need to put on as a small business owner is figuring out your business insurance. Small business insurance is an important consideration for many businesses as it offers protection against risks you may encounter. And while you don’t need to know the ins and outs of the intricacies between Professional Indemnity insurance and Public Liability insurance, it’s good to consider analysing what risks you could get covered by. Thankfully, sorting out your business insurance is easy through the comparison website BizCover.

The Bottom Line

From building your customer base and working towards your passion to the freedom you’ll feel from being your own boss, there are many advantages to starting up your own business. And while there will always be aspects of your career that you may not like as much, these perks far outweigh the negatives for many Australian small business owners. Small business owners are the lifeblood of the Australian economy, with thousands starting out every year. There are countless examples of Aussie success stories and if you start now, you could be one of them.

* This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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