The Benefits of Owning Your Own Business
There are thousands of articles cautioning people who would like to be self-employed about the pitfalls of starting their own businesses. While certainly there are challenges to owning your own business, there are many benefits to being your own boss, as well.
Here is a summary of the benefits of owning your own business.
You're in Control
Have you ever worked a job in which you felt you could do better if you had control over how the work was done? Let's face it. Jobs can be constricting, and sometimes don't allow you to maximize your knowledge and skill.
When you build your own business, you do what you want, how you want, when you want. You develop the product or service to the level you think is best. You have systems and routines that work best for you. And if you need a powernap late morning or afternoon to boost creativity and productivity, you can take one.
As a business owner, you have choices, you get to make the decisions, and you're less likely to get fired.
Owning your business gives you the freedom to do what you want, when you want, how you want!
You Get to Build Something
Owning your own business allows you to turn your skills, interests, and passions into income. Whether you love cooking, gardening, helping people reach their fitness goals, finding deals to sell online, or doing math, you can create a business out of nothing that taps into your interests. When you own your own business, you get to shape and flesh out your dreams.
You Get to Help People
In a TD Canada Trust Small Business Survey 96% of small business owners said that being able to help their customers and clients was one of the top benefits of owning a small business. Small businesses also help people by creating jobs in their communities and being good community citizens.
You May Have the Option of a More Flexible Lifestyle
For women, especially, owning your own business can give the lifestyle flexibility necessary to raise a family and still have a successful career. There are more than 11.6 million businesses owned by women generating over $1.7 trillion in sales.
Millennials who grew up with technology have turned to entrepreneurship due to low employment opportunities and increased interest in lifestyle over money. Even so, millennials are quite successful in this endeavor with 80% reporting profits, which is 3% higher than the national average for business.
It's not just moms and Millenials who can benefit from the flexibility of owning a business can offer. People who are close to retirement or already retired may find owning their own businesses gives them both the chance to keep their hands in and to do something satisfying. People who want to travel or live a particular lifestyle can benefit from entrepreneurship.
You Might Change the World
Many business icons started with an idea that has changed the world. From Disney to Zuckerberg, and Bezos to Gates, all of them had ideas they built an empire around. Many of these companies were started from their garage.
With that said, your business doesn't have to become the next Facebook or Microsoft to be the agent of powerful change. For the last four decades, for instance, Torben Vestergaard Frandsen has been creating products such as blankets for the Red Cross, tsetse fly traps, and LifeStraw, a personal, low-cost water purification tool that is being used to provide safe drinking water to millions of people.
While you may not change the world, even helping one person with your product or service is significant.
You Might Make More Money
Granted, statistics on business success can seem grim. There is approximately a 50% success rate to five years. With that said, there is much you can do to improve your chances of success, and in fact, depending on your goals, opening a business might be a better financial option. For one, with a business, you're more likely to earn what you're worth, especially if you're a woman. Instead of earning 79% of what a man earns, a woman can charge her value in a business.
As the business owner, you can set prices, and along with business tax perks, you could end up making more than you would in a job.
Earn What You're Worth
With a business, you're more likely to earn what you're worth because you set the prices.
Other Benefits of Owning Your Own Business
The benefits of owning your own business listed above apply to all businesses with the caveat that those who choose to run retail businesses will find it more difficult to create a flexible lifestyle because of the demands of retail trade.
But people who are self-employed rather than employed by someone else also have other potential advantages. They may be able to enjoy income tax breaks not available to employees, such as hiring other family members and income-splitting. They might be able to work from home. Best of all, owning your own business can have you waking up with a smile on Mondays eager to start work rather than dragging yourself into someone else's business.
Bureaur of Labor Statistics. "Self-Employment: What to Know to Be Your Own Boss." Jan. 18, 2020.
University of Minnesota. "5.4 Advantages and Disadvantages of Business Ownership." Accessed Jan. 18, 2020.
SBA. "Startup Business Ideas: 4 Steps to Identify the Right One." Accessed Jan. 18, 2020.
TD Canada Trust. "Canadian Small Business Owners Keep Smiling, Despite Working Longer Hours." Accessed Jan. 18, 2020.
National Association of Women Business Owners. "Women Business Owner Statistics." Accessed Jan. 18, 2020.
U.S. Small Business Administration. "Millennial Entrepreneurs Are a Force for Change." Accessed Jan. 18, 2020.
Eventbrite. "Millenials Fueling the Experience Economy," Page 2. Accessed Jan. 18, 2020.
Guidant Financial. "Current Trends and Statistics for Millennials in Business." Accessed Jan. 18, 2020.
Vestergaard. "Making an Impact Since 1957." Accessed Jan. 18, 2020.
Bureau of Labor Statistics. "Entrepreneurship and the U.S. Economy." Accessed Jan. 18, 2020.
U.S. Department of Labor. "Breaking Down the Gender Wage Gap." Accessed Jan. 18, 2020.