Startup businesses have flourished in the recent years. Especially in a capitalistic economy, coming up with a startup business idea is always encouraged. Startups can help someone to pursue his own personal interests and passions and can also contribute to the economy at large.
Hence, they have both micro and macro prospects. Be it a jewellery startup or an education startup, there is a wide range of ideas that can be performed and executed through a startup business. A startup solidifies one’s financial independence and also provides job opportunities for many candidates. All it takes is just an idea.
Now let us explore the various advantages and disadvantages of owning a startup.
|Financial independence||Working for longer hours|
|Job opportunities||No guidance|
|Fuels one’s passion||Payment issues|
|Contribution to the economy||Uncertainty|
|Increases engagement of the customers||Financial risk|
|Controlling one’s own destiny|
Advantages of owning a startup:
- Financial independence:
A novel startup idea can guarantee financial independence and autonomy. You are obligated to share your profit or your success with anybody else unless it is a partnership. You are in charge of all the decisions that you find important for your business to grow.
There is no external influence or interference that can affect or hinder your decisions. Often a five to nine desk job becomes tedious and one may not enjoy working under somebody. That is when one chooses to embark on a new venture and own a startup where one can exercise his own authoritative power.
- Job opportunities:
A startup welcomes fresh and skilled candidates from various fields. Since it is a new business venture, young and even inexperienced candidates are hired in large numbers. Hence, a startup offers numerous job opportunities for graduates and inexperienced interns. Since the initial phase of any startup is a bit uncertain and involves limited resources, these young employees find an opportunity to learn, take bigger responsibilities and gather a lot of experiences.
- Fuels one’s passion:
A business idea is afterall a manifestation of one’s own passion. If you are extremely interested in making jewelleries and think of owning a jewellery startup, then in a way, you are monetising your hobby or passion. Many people who got exhausted working in a big company, thought of following their passions and monetising them. Hence, a startup, undoubtedly, fuels one’s passion for doing something on his own.
- Contribution to the economy:
Even if it is a small startup, it does contribute to the economy no matter how little the contribution is. Every industry that has bloomed and flourished has some way or the other helped an economy grow. Hence, in order to indulge in economic development and prosperity, running any form of startup business is not only desirable but also essential.
- Increases engagement of the customers:
A startup business is generally more customer-friendly. They often become successful in establishing a safe and friendly space for their clients. Customers can share their personal reviews based on which the business can grow further. The startup business owners, mostly, engage in one-on-one interactions with their customers and encourage them to share their suggestions and advice.
- Controlling one’s own destiny:
Since a startup business is completely an autonomous venture, one can control his own professional destiny. He owns up to every single decision that he takes to help his business grow. Although this has its negative consequences, this actually makes a startup business owner more responsible and accountable to his actions.
- Innovative ideas:
Once you come up with a business idea you can always keep improvising and improving it. That is how an idea grows and transforms into something greater and more creative. If you own a startup business, you will always have the freedom to shape and mould your innovative ideas. You can keep learning and growing as an entrepreneur.
Disadvantages of owning a startup:
- Working for longer hours:
Beginnings are always harder than one can imagine. If you own your startup business, the initial phase is always going to be difficult. You will have to begin with limited resources and employees and you will have to work for longer hours. This may affect your mental and physical health drastically.
- No guidance:
Since startups are mostly personal and independent ventures, one may not receive much guidance from those who are experienced. Autonomy has its pros and cons. A startup entrepreneur may have to learn and gather new experiences on his own since there is no one above him to supervise his actions.
Lack of guidance from an external source may affect one’s business prospects to a huge extent.
- Payment issues:
Since beginnings are difficult, a startup owner may find it extremely difficult to pay his employees well. If the payment criteria are not met, many employees may resign from their posts if they receive better job opportunities.
The owner has to invest a lot in the beginning and this financial crisis may make him suffer a huge loss.
No startup business venture can guarantee success. One has to go through the process of trial and error repeatedly before he starts earning profit. Everything is uncertain and in a precarious state in the beginning.
Failure is an obvious setback and a startup owner has to go through all these difficult phases to make his idea work. Therefore, owning a startup has its own perks and challenges.
- Financial risk:
When one invests a huge sum of money in his business, he obviously risks his professional and even personal lives. Financial security in any startup is never guaranteed. One may have to suffer a huge loss and his proposal may get rejected or disapproved by his clients repeatedly. A startup owner undergoes myriads of challenges.
However, despite these drawbacks, owning a startup is always a blessing. The challenges are obviously detrimental, but what is life without a little risk? Owning a startup also broadens one’s perspective and fuels creativity. You own up to the decisions solely taken by you and you experience failures as well.