Running your own business can be a rewarding experience, with so many opportunities. A business can bring many opportunities, but it also has many responsibilities. Whether it’s successful or not, there will be a lot of unknowns. What are the benefits of owning your own business? You might want to consider a few benefits for your business that can improve it.
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What are some disadvantages of having a business?
Before we dive into the benefits, keep in mind that a business will always have downsides. Some of them include the following:
- There are no guarantees of success (get used to taking risks)
Whenever you launch a business, nothing is ever guaranteed what will happen. It can be a successful one, or it can fail miserably over time.
- No set amount of income (i.e. expecting a steady paycheck every other week or so)
Unlike being an employee, you don’t exchange your time in return for a regular paycheck. As someone who’s in charge, you may be the one distributing the paychecks to your employees. You’re likely the last person to get paid after everyone else.
- Following laws and regulations (i.e. taxes)
Depending on where you live, tax laws may vary based on your jurisdiction. If you run a brick-and-mortar business, you must check that you comply with laws and regulations.
What are some benefits of having a business?
There are many benefits to running your own business. The rewards and opportunities are endless depending on which direction you take them.
For the remainder of this article, I will discuss seven benefits you have being your own boss.
- You’re The One In Charge
- Work Hours Can Fluctuate
- Decide Who You Want To Work With
- Potential To Make Unlimited Income
- Pay Less In Taxes
- Sell Your Business Or Pass It On To The Next Generation
You’re the one in charge
When you’re running your business, you make the calls and determine how things should be structured. Technically, it’s not a “free fall” or let everything run wild, as you still bear most of the responsibilities.
It’s nice to not have a boss (someone you report to) tell you what to do, or how you should do a specific task. When you’re in charge, you have that freedom (but also great responsibility) to make big decisions for the business.
Working on your own allows you to create a schedule that fits best for you. You can set your own hours, or even switch it up some days.
There’s no set schedule when working on your own. You’re not subject to the traditional 9-5 work schedule, as it may change on a daily basis.
Work hours can fluctuate
As a business owner, you can work a full day sometimes. Or even at best, you may only need to work a half day (i.e. 4-5 hours). It may depend on the business you’re operating. If it’s unpredictable, your schedule may be different as each day goes by.
Decide who you want to work with
As a business owner, you’re able to choose who works for you. For example, you may be the one making the hiring decisions.
Another thing is you can choose your own clients. A lot of freelancers and business owners have the option to choose who they want to provide services. So it benefits to decide who you want to do business with, as they can be some of the best clients you work with.
Potential to make unlimited income
As mentioned earlier, there are no guarantees of how much revenue you’ll make. However, you can make as much as you desire (by making the right decisions).
It may not be easy, but it’s definitely possible. It may take a lot of effort and time, but the potential for a high amount of revenue is certainly achievable.
The employer vs. employee mindset
Going back to a point made earlier, this one is a key difference between an employer and an employee. The mindsets are very different when it comes to making money.
- Works for money
- Income is limited or set at a cap (i.e. hourly pay or annual salary)
- Likes being told what to do (takes orders from their boss)
- Works on a set schedule for someone else (i.e. business owner)
- Money works for them (think passive income)
- Income potential is high (can earn as much money as possible)
- Likes creating tasks that will help grow their business
- Works a schedule that fits their lifestyle and business needs
Basically, being an employer has more advantages than being an employee. Just breaking it down, the potential for better opportunities is higher when you’re your own boss.
For more information, I encourage you to check out an excellent book on money and mindset. Rich Dad Poor Dad is the best book on personal finance I’ve ever read.
Pay less in taxes
It may not make sense, but you can pay fewer taxes by owning a business. That idea sounded crazy when I first learned about it, but it makes more sense now.
Depending on where you live around the world, tax laws may vary based on your jurisdiction. How the tax laws are set today benefits businesses more than employees.
Let’s take tax laws in the United States: Taxes are set up to benefit businesses to make more money. The US government relies on businesses to create jobs and grow the economy.
So by abiding by the current tax laws, business owners can benefit if they are successful in building wealth and employment opportunities for more people.
You may not like how the system is set up, but unfortunately, it won’t change anytime soon. That’s why the best thing to do is learn how to play by the rules, and build your way up to success.
I won’t go over it in too much detail. But the point is, working for yourself comes with paying less in taxes than you would work for someone else.
Sell your business or pass it on to the next generation
If at some point you no longer want to be part of the business, you can sell it later on. Especially if it’s very successful, you can ask for a higher price when negotiating with a potential buyer for your business.
Or another option can be to pass on the business to your inheritance. If you have children who work in your business, you can pass on ownership to them. It’s very common for that to happen if your family is involved in a business.
My family situation
I have relatives who run a small business. It involved my grandparents, my parents, one aunt, and once uncle.
About a decade ago, my late grandfather decided to retire. When he retired, he decided to pass on ownership to my father and aunt. Considering that they were his children, he had trust in them to manage the business moving forward.
So that is one small example of how you can pass on the business to your inheritance. It’s very common, and sometimes, it can be the best decision to keep a business moving forward.
Achieve fulfillment and seek true passion
When you own a business, you’re potentially doing something that you enjoy doing. Of course, not all aspects will be fun in running a business. There will be some things you don’t like doing, but it has to get done.
But if you do something that’s fulfilling, that’s the beauty of working for yourself. Being able to do something that excites you day in and out can be a rewarding experience.
Unfortunately, not a lot of people seek those opportunities. They rather stick to the easy route of working for someone else. But what they don’t know is there’s much more potential by going down the opposite route.
Doing things that are personally fulfilling is what makes life worth living. Those who can do that are not only the most successful people but the happiest ones as well.
There are many benefits to running a business. In spite of the downsides, the benefits outweigh the costs.
The ones I went over can be starting points to growing your business. They’re things to consider as you think about business differently, along with the potential it carries.
If you’re interested in starting a business (or looking to expand on one), I’d like to get in touch about a program that can help with that. If interested, feel free to reach out via the contact page.
Your Turn: What do you find the most beneficial about running a business?
I would like to get your thoughts on this topic. Which one of the benefits do you think serves you the best?
Which one stood out the most to you? Was there something you were not aware of when it comes to business practices?
Feel free to share your thoughts by leaving a comment below. I look forward to reading your responses, and I’ll gladly respond promptly.
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Eric is the owner and chief editor of notimekillers.com. He takes great pride in helping people manage their time and grow their businesses. Eric is a firm believer in financial and time freedom, as he believes in financial independence and taking ownership of your time. “Time is your most important asset. It can be your best friend or worst enemy. How you use your time can shape the future you desire to have.” In his leisure time, Eric loves to write and read whenever possible. He enjoys going for long walks outdoors while doing in-home workout videos every week. You can also connect with Eric via LinkedIn.