Did you know that small businesses account for 99.9% of all U.S. businesses: that’s 33.2 million small businesses in America? And small businesses are credited with just under two-thirds (63%) of the new jobs created from 1995 to 2021. The US Small Business Administration generally defines a small business as having fewer than 500 employees.
If you want to be in business for yourself, be aware that there are great rewards and high risks. Success brings with it many advantages:
- Independence. As a business owner, you’re your own boss. You can’t get fired. More importantly, you have the freedom to make the decisions that are crucial to your own business success.
- Lifestyle. Owning a small business gives you certain lifestyle advantages. Because you’re in charge, you decide when and where you want to work.
- Financial rewards. In spite of high financial risk, running your own business gives you a chance to make more money than if you were employed by someone else. You benefit from your own hard work.
- Learning opportunities. As a business owner, you’ll be involved in all aspects of your business. This situation creates numerous opportunities to gain a thorough understanding of the various business functions.
- Creative freedom and personal satisfaction. As a business owner, you’ll be able to work in a field that you really enjoy. You’ll be able to put your skills and knowledge to use, and you’ll gain personal satisfaction from implementing your ideas, working directly with customers, and watching your business succeed.
Some of the risks you run if you want to start a small business include:
- Financial risk. The financial resources needed to start and grow a business can be extensive. You may need to commit most of your savings or even go into debt to get started. If things don’t go well, you may face substantial financial loss and there’s no guaranteed income.
- Stress. As a business owner, you are the business. There’s a bewildering array of things to worry about—competition, employees, bills, equipment breakdowns, customer problems. As the owner, you’re also responsible for the well-being of your employees.
- Time commitment. Running a business is extremely time-consuming. Because you are the business, it’s hard to get away for vacations or taking a few hours off to be with family. And even if you can, modern technology means that you are always “on” and reachable.
- Doing it all. When you first get your business going, you’ll be responsible for everything! That list can be exhaustive, from learning new technology, ordering inventory, product placement, marketing, hiring and firing, and much more.
Whether you already have your own small business or are thinking about starting one, West Center has experienced advisors who can help you with every aspect of your business operations. Just give us a call or make an appointment on our website. We are here to help you!
