PROS AND CONS OF STARTUP BUSINESS
After having sufficient understanding of startup definition through this link, let’s move on the pros and cons of having startup.
Many students, teenagers, young people start thinking to start their own business. Starting own business can be exciting, challenging and terrifying at the same time. A modern business model can be considered is startup. For those who love to take risk, may consider entrepreneurial venture such as a startup. Some of them, will join in a startup to get some experiences and feel the excitement of this entrepreneurial venture. We better to consider carefully on the risk, the disadvantage, and the future of the business because there are dark spots which are unclear to be seen. Therefore, it is important to know and understand the pros and cons of startup business, before you dive in the pool.
Some pros can be:
- You own the idea
- You’re the Creative Director
- You retain all of the equity
- You can run your business as you please
- There are no rules
- You keep 100% of the profits
- It lets your innovative and creativity thrive.
- Highest satisfaction
Yes, we can say that you will be the boss that take control of every aspect of your startup. You have full control of your business and the sky is your limit. Whatever you do in your startup business, it will give you benefits at some point. Moreover, some potential high income may be achieveable, more than to those who work in the office. On top of that, you won’t be worry of losing your job because of company cut, doing mistakes, or any other serious issues.
By building your startup, you have power to develop creativity and innovation to make dream into real. You innovation will take you to new higher limit that you never knew you could reach. Finally, you can attain a truly satisfaction.
On the other hand, some cons can be:
- Your total upfront investment is unpredictable
- Competitive business environment
- You don’t have a clue as when you reach break-even
- You can’t get a good handle on your expenses at first
- Your risk is big, because you don’t know if your idea will work
- You’ll be under tremendous pressure to make your business profitable
- You have no one behind you to fall back on
Beside many pros, we need to understand and consider some cons that come together with the pros. When you decided to begin your startup, you need to be ready not only with the idea but also with the initial investment. This investment mostly discourages people since they need to take out personal savings, a loan from friends or borrowing from investors, or anywhere else. You need to have capability to manage your business finance, to do budgeting and bookkeeping.
Even though you believe that you are ready financially, you need to be ready with any risk that might be happen. You need to have willingness to sacrifices a long the way to make it work. Because of uncertainty and the risk, there is no guarantee that you can get salary right after you begin the startup business. I can say, when you have startup, you are on you own. There is no one who can help you to get out of the bad situation. You have big responsibility on your shoulder and have to handle everything. You might be stress out at the beginning stage of startup in a very competitive environment.
References:
- Libaya, Joel. 2020. Pros and Cons: Startups and Franchises. https://www.sba.gov/blog/pros-cons-startups-franchises
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