ESCOLA SECUNDÁRIA LOURENÇO DO ROSÁRIO

ADVANTAGES AND DISADVANTAGES OF HAVING OWN BUSINESS

12ª Classe, Grupo A

Docente :
Discentes:
Shaheema Afzal nº

Quelimane

2020
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Index

Introduction..................................................................................................................................3

1.Advantages and Disadvantages of Having Own Business.........................................................4

1.1. Explanation about Having Own Business.........................................................................4

1.2.Advantages of having Own Business.....................................................................................4

1.3. Disadvantages of Having Own Business...............................................................................6

Conclusion...................................................................................................................................8

References....................................................................................................................................9
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Introduction

In the world many young people want or decide to start doing own business, either
being employed. So, knowing that we are young it would be very important to know
more about own business, especially describing what are the advantage and
disadvantages of doing own business.

Therefore, in the present work we are going to talk about Advantages and disadvantages
of doing own business, were we are going to describe almost all aspects related
advantages and disadvantages of having own business.
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1.Advantages and Disadvantages of Having Own Business

1.1. Explanation about Having Own Business

In fact, many young people have turned to have their own business. So founding your
own business is unlike any other job you may take on. It’s a pathway to a totally
different lifestyle – so much so that you’ll have to ask yourself whether you’re ready for
a complete commitment to the success of your business. If you’re in a relationship, it’s
just as important that you ask your partner whether he or she is completely committed,
(Small Business Development Center, 2006).

As the CoE – Chief of Everything – of your business, you’ll have less time for your
personal life. You may put yourself in the position of using much of what you own as
collateral to raise money for the business. If those sacrifices don’t sound too harrowing,
consider these advantages and disadvantages of owning your own business.

1.2.Advantages of having Own Business

According to (Cicco and Associates Inc) having own business has the following
advantages:

 Being your own boss. When you run your own company, you can create a
schedule and work environment that's right for you. This often involves
choosing a business model that makes sense for your skills and personality. If
you're a gregarious night owl, it makes sense to open a bar and if you love to
travel and shop, you can start an importing company.

 Creative expression. Your business reflects who you are and what you care
about. If you care about fashion and reducing your carbon footprint, you can
open a second-hand boutique and if you're handy and like to help people, you
can start a business doing home repairs. In the end, you're limited only by your
imagination and, of course, your ability to actually earn a living doing what you
love.

 Earning potential. When you work for someone else, your income is limited to
what your employer is willing and able to pay. When you own your own
business, you have the potential for virtually unlimited earnings if you have a
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good idea and excellent business sense. Of course, most small business owners
don't strike it rich, but the chances of unbridled success are greater in a venture
where you're first in line to reap the rewards.

 Job security. You can never be laid off from your own business. As an
entrepreneur, you can change your business model if you're doing something
that doesn't work or if market conditions shift. You may incur debt in the
process, but you're personally responsible for charting a path and taking
measures to preserve your livelihood if you have the conviction that it will
ultimately succeed.

Summarizing the advantages of having an own business, we can have:

 Windfall: You could make much more money that working for someone else.
 Autonomy: Be your own boss, and make all the decisions crucial to your own
success.
 Influence: Hire other people to help – chip in to the local economy.
 Security: No one can fire you.
 Discovery: Put your own ideas into practice, and see what works and what
doesn’t.
 Oversight: Control every aspect of the business.
 Experience: Learn about every aspect of a business and gain knowledge in a
variety of disciplines.
 Contact: Work directly with your customers, and see what they need first-hand.
 Self-Belief: Take personal satisfaction of creating and running a successful
business on your own.
 Interest: Work in a field or area that you really enjoy, or that compels you to
continue working.
 Long-term: Build real retirement value – for example, by selling the business
when you retire.
 Establishment: Put down roots in a community; provide a sense of belonging
and stability.
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Thus, generally many small businesses can be started at a low cost and on a part-time
basis, while a person continues a regular job with an employer or provides care for
family members in the home. In developing countries, many small businesses are sole-
proprietor operations such as selling products at a market stall or preparing hot food to
sell on the street, that provide a small income. In the 2000s, a small business is also well
suited to Internet marketing; because, it can easily serve specialized niches, something
that would have been more difficult prior to the Internet revolution which began in the
late 1990s. Internet marketing gives small businesses the ability to market with smaller
budgets. 

1.3. Disadvantages of Having Own Business

In the same way, (The Next Galaxy) affirms that having own business has the following
disadvantages:

 Risk. Owning a business almost always requires you to take personal financial

risks. You will most likely finance your venture at least in part using your own
resources, even if this is just a matter of pledging collateral for a bank loan.  
 Long hours. As a business owner, you are ultimately responsible for
everything from fulfilling customer orders to writing payroll checks. Even if
you are fortunate enough to be able to delegate many of these duties to your
staff, you must still make sure that everything happens as it should and you
may end up doing much of the work yourself. Be prepared to put in a more
grueling schedule than you would if you worked a conventional job.
 Startup struggles. Few businesses make enough to support their founders
right off the bat. It is far more likely that there will be a period when you will
work without making any money even if you do everything right. If you have
some savings you may be well positioned to ride out this startup period but if
you have a family to feed and no safety net, business ownership may not be
right for you.

Summarizing the disadvantages of having an own business, we can have:

 Investment: You may have to take a large financial risk.

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 Devotion: You’ll likely have to work long hours and may have fewer
opportunities to take vacations.
 Minutiae: Much time could be eaten by the details of running a business, not
those things you enjoy.
 Inconsistency: Your income may not be steady; there may be times when very
little is coming in at all.
 Strain: You may have to undertake unpleasant tasks, like firing someone or
refusing to hire a friend.
 Learning: You may need to learn new disciplines, like filing and bookkeeping,
inventory control, production planning, advertising and promotion, market
research and general management.

But there is other idea about, considering doing all this from your home office? This
comes with distinct pros and cons as well (A Step-by-Step Guide):

Pros:

 Your startup and operating costs will be lower than if you were renting space
and paying utilities.
 No commute; live anywhere unless your business hinges on your location.
 Your schedule can be more flexible if business can be conducted outside
weekday business hours.

Cons:

 You’re vulnerable to interruptions from family members, neighbors and door-to-

door salespeople.
 You may have trouble attracting qualified employees, and may be less accessible
to suppliers.
 You may run out of space at home if your business grows.

With all these ideas in mind, make an informed decision on whether or not you’re ready
to take the plunge into business ownership, (SCORE).
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Conclusion
After doing this work, I understood that the advantages and disadvantages of running
your own business often come down to different sides of the same coin. On the one
hand, you have the autonomy to run your company just as you like.
On the other hand, you're responsible for critical decisions with far-reaching
consequences that can hurt you badly financially if you make the wrong calls. Running
your own business isn't for everyone, but if it's right for you, it can be personally and
financially transformative.
However, the differences between the advantages and disadvantages of starting a
business from scratch often come down to how well you research and plan before
starting your venture. Invest the time and energy in creating a thoughtful and thorough
business plan. This process will force you to think through everything from what you
will make, to how you will market it, to how you will pay for your business launch.
It's quite likely that almost nothing that happens in your business will unfold quite the
way you lay it out in your business plan. However, the process of compiling this
information and thinking through different scenarios will greatly enhance your odds of
success.
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References
The Next Galaxy: Owning Your Own Business Advantages and Disadvantages
Linked In: The Advantages and Disadvantages of Starting Your Own Business
Entrepreneur: Business Plans: A Step-by-Step Guide
SCORE: Business Plan Template for a Startup Business
Cicco and Associates Inc., “Type E Personality—Happy Days—Entrepreneurs Top
Satisfaction Survey,” Entrepreneur.com, http://entrepreneur-
online.com/mag/article/0,1539,226838–-3-,00.html (accessed May 28th, 2020).
Small Business Development Center, “Pros and Cons of Owning a
Business,” (http://72.14.203.104/u/siu?
q=cache:DFSPVtmg7j0J:http://www.siu.edu/sbdc/bus
heck.htm+pros+and+cons+of+owning+a+business&hl=en&gl=us&ct=clnk&cd
=1&ie=UTF 8) (accessed May 28th, 2020).