If you’re here, it means you have a passionate idea to start a business. You want to set the market on fire by creating a new product or introducing the market with a unique invention. The process can be daunting, scary but can be comforting as well. So you must know the pros and cons of starting a business from scratch.
According to the president of Image One Facility Solutions, Mr. Tim Conn, The first formative years are the hardest for any business. But, unfortunately, the sad part is that half of these businesses end up failing.
It’s great to launch your business, but you have to consider some pros and cons of starting a business from scratch.
Let’s look at this example to get a better understanding of what you’ll be getting in.
If you wish to bake a cake, then you’ve got two options. One is to collect each ingredient, mix them, then bake them, or you can get an already baked cake.
It’s the same when starting a business. First, you have to know which option you are most comfortable choosing. If you end up choosing the first one, then be ready for a rollercoaster of a ride.
You will have to work for more than 18 hours a day, build things up from the ground level, cut off your costs ,etc. But, once your business takes off, it’ll bring you so many pros that you won’t even remember these cons.
Without any further ado, let’s jump to the pros and cons of starting a business from scratch.
List of Pros and Cons of starting a new business from scratch
Pros Of Starting a New Business:
- Reduced Costs:
It is the most talked-about advantage among all the pros and cons of starting a business from scratch. When you buy an already running business, you have to pay high costs. On the contrary, starting a business from scratch means you will work around your budget. So, there’s no extra pressure to bring in extra money to meet these costs. Also you can start some businesses truly from home so that you can save transportation expenses too. See some home based business ideas
- Be Your Boss:
I think this one of the pros that force people to start a business of their own. You may have gotten tired of saying yes, sir, a little often. With a business of your own, there won’t be anyone to boss you around. You will have complete freedom over every little aspect of your business.
- Gain Financial Independence
The initial developmental stages of a new business are no doubt very hard. But, if you succeed in getting your business off the ground, you can enjoy many benefits like financial independence.
You get free from depending on anyone to pay for your expenses and gain complete control over the amount of freedom over setting up your priorities. This point right here overcomes all the pros and cons of starting a business from scratch.
Cons of Starting a New Business:
- Getting Married With Your Business:
It’s a common phrase that young entrepreneurs often use to describe their relationship with their business. In reality, it’s not that easy. You have to be ready to put in hours of hard work every night and day.
Your business is with you always, when you’re at home or outside. So it requires constant attention and continuous work all the time.
- No Mentor or Guidance
When you become your boss, then naturally, you’re the highest reporting authority in your business. There’s no one above you, so must rely on whatever skills, knowledge, or information you have related to the business.
- The Toll on Mental Health:
When you start your business, you have to be ready to face the harsh market realities. You may lose your revenue. You may fail to get sponsors, or your proposals can get rejected. But when everything is at stake, including your finances and your family, these setbacks can be brutal for mental wellbeing.
We have discovered both the pros and cons of starting a new business from scratch. Now its completely up to you if you want to start your business from scratch or buying an existing business. Also you can read 7 mistakes to avoid when starting a business if you are a newbie in this business world.