Disadvantages of Owning Your Own Business

Owning your own business is an essential part of the American Dream. Set your own hours! Be your own boss! Make money for you, not your boss!

From Dream To Nightmare

But the reality of owning your own business can quickly go from dream to nightmare. Is there a bigger headache than calculating an employee’s FICA deduction? Don’t forget about compliance regulations and workplace safety guidelines.


Before long the disadvantages of owning your own business become obvious. It’s not all it’s cracked up to be.


How Big Is Small?

Most of the businesses start as a “small business”. A small business is defined as a company that has less than 500 employees.


Over 50 percent of the working people in the United States work for small businesses. Over half a million new businesses are started and registered each and every month.


Unfortunately, not all of them survive.

According to US Small Business Administration around 80 percent of small businesses last more than one year, but then this figure decreases to 50 percent by the five-year mark.


In simple words, after five years half of small businesses fail. That number speaks for itself.

Running your own business is hard!


Land of the Machines

When you own a business, you find yourself learning things you never knew before, and doing things you never thought possible. Whatever your profession — doctor, welder, landscaper — you’ll become a veritable jack-of-all-trades once you own your own business.


Business owners often feel like slaves to machines. Computers go offline. The copier is jammed. The fax machine needs paper. The printer craves a new toner cartridge which can be of different types and you need to make sure you get the right one.



Yes, when you run your own business you are the person who is responsible for everything mentioned above and hundreds of other things (even when you have employees who take care of some parts of your business, you still need to manage them and monitor their performance).


One way to save money, time and productivity around your office is by handling certain chores yourself. Learn the basics of computer networking. Figure out how to clear paper jams in the copier. You can certainly handle keeping your laser printer clean.


Desperately Seeking Customers

One of the most stressful aspects of owning your own business is attracting clients. Without customers and clients you won’t own your own business for long!


Do you need to hire an outside marketing firm, or will you become your company’s advertising manager too? (In addition to your roles as CEO, CFO, office manager, field technician, janitor, etc.)


Whatever you decide to do it must bring in sales in the volumes that are enough to keep your business afloat. So, as a business owner you always need to utilize the most effective sales and marketing channels that bring tangible results.


For example, digital advertising is an essential part of any modern marketing plan. You need Google and other search engines to find your business and recommend it to others. But it’s getting more crowded, competitive and costly with each coming day.


Verdict: you need to think outside the box.

Look at “old school” print ads! We’ve seen firsthand the importance of print advertising in the age of digital. Many business owners find a significant return on investment with a few well placed print ads.


Need to draw local customers? Consider an ad in the local weekly newspaper. Looking for a national niche audience? A full page ad in a specialty publication might be just what your business needs.


Print is not dead and the good news is that not everyone knows this.


Five Most Common Disadvantages Of Owning Your Own Business

A survey of business owners reveals the most common disadvantages of owning your own business.


  • Financial Risk — Financial risk scares away many new business owners. Most businesses have start-up costs and monthly bills. Many business owners take out a loan when starting a business, which means they are in debt from day one, while also trying to generate revenues.


  • Stress and Health Issues — Business owners tend to experience high levels of stress as well as health issues. Not having a consistent paycheck is stressful. And once your business grows, so do the headaches. Hiring employees means you’re responsible for the livelihood of others, which adds to personal stress.


  • Time Commitment — It’s great being your own boss and setting your own hours, but that doesn’t mean you’ll be working less. Just the opposite. Most new business owners find themselves putting in 60-90 hour work weeks, especially in the beginning.


  • Bad Business Plan — Having a solid business plan in place before launching your business will save you a lot of heartaches down the road. Research your market and make sure your plan is viable. Make realistic goals and stick to them! Develop an advertising plan that will spread your message without breaking the bank. Your digital presence is as important as your physical presence in today’s retail world. Stay on top of current trends so you can predict what’s coming in time to make marketing adjustments.



Obviously there are disadvantages to owning your own business. You have no one to blame but yourself. But with smart research, careful spending, and a do-it-yourself attitude, your business is bound for success!


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