Pros and Cons of Starting your own Business





Factors
Employment
Business Ownership
Risk
Pros: Stable income; often includes benefits; standard career progression
Cons: Layoffs a constant pos­sibility, as long-term employment is less of a given today
Pros: Offers more career control and opportunity for advancement
Cons: If business fails, you have more to lose financially; can require significant initial investment of time and money
Rewards
Pros: Well- defined with potential for incremental increases
Cons: Little chance for major increase in the short term
Pros: Financial reward significantly greater in the long term
Cons: Short-term financial rewards—even salary—may be nonexistent
Intellectual stimulation/professional challenge
Pros: Established businesses often have a training budget to keep your skills well-honed
Cons: Some jobs offer little mental stimulation or challenge
Pros: Business owners are constantly learning on the job
Cons: Sometimes difficult to carve out time to receive official training and development
Time and effort required
Pros: Typically well-established pattern of hours; opportunity for additional compensation or recognition spelled out
Cons: Extra effort may not yield any kind of reward
Pros: Time spent on business is often within your control—you create a schedule that meets your needs
Cons: Near- constant commitment required during startup; greater than average time investment required thereafter
Control over schedule
Pros: Schedule is well-defined, and expectations are communicated at outset
Cons: Schedule is defined entirely by employer
Pros: When and where you work is frequently within your control
Cons: Your business may require more time than you’d anticipated or wanted to invest
Vacation
Pros: Well- defined and available
Cons: Limited to a certain number of days per year
Pros: Available anytime
Cons: Sometimes hard to schedule due to business commitments or workload
Taxes
Pros: Withholding covered in part by employer
Cons: Employees are generally not entitled to all the tax deductions that businesses are afforded
Pros: With your accountant’s help, it may be possible to reduce your total tax obligation
Cons: All taxes—company’s portion and yours—are paid by business, making proportion higher

source: http://quamut.com/quamut/starting_a_business


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1 comments:

  1. Grace Formeels Says:

    Choosing a franchise business is very useful because of it's like a ready made business for you. So, you have a brand name and product, so you can make money with a big name.

    pros and cons of franchising

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