Establishing a small business startup is now at the best time as the Internet capability for business transactions and promotions is also being maximized through connectivity. However, before you plan to jump into the bandwagon of micro venture, know the pros and cons of this type of business first so you know how if it is the best decision for you or not.

 

Small Business Startup Advantages

1. Low-risk venture

I couldn’t find any better reason to opt for a small business than this. The smaller the capital is, the smaller the chance of losing money. This is not always true, but it stays as it is most of the time for small businesses. As you are micromanaging your business, there is a smaller room for error and oversight. It is also easier to handle problems in this set-up should they arise because you have longer arm-reach due to tighter setting.

2. Low-capital venture

Capital for this type of business is very minimal if you are offering products. It is even lower if you are basing your business on services which mainly rely on human-capital. However, since this is a small venture, do not expect growth rate as fast as its bigger counterparts. You lack of resources may also take a toll should there be more clients willing to buy your product or avail your service more than what you can actually offer. In that case, it is already a lost transaction for your business.

3. High flexibility

Small businesses tend to have more flexibility in offering their products and services because they have a more lenient structure, both in finances and systems. While big companies have multilevel organization which makes flexible offering almost possible, small business ventures have more room for adjustment as you have the sole discretion to do. There is also not much documentation to problem so if you feel like giving extra service or freebie to a client, just go and take charge.

 

Small Business Startup Disadvantages

1. Short-term venture

The model of a small business startup is not meant to stand the test of time. This is more seasonal (which is in a way also an advantage) and may not have uptimes all year round. Partnership among businesses is important to stay relevant and extend their reach to more market segments, and because you do not have this (unless it is with another small business as well although it involves hefty sum), there is a high-risk of going out of business during non-peak seasons.

Nonetheless, this is evitable should you stay updated, expanding your services with consistent innovation – a tough job for a single person.

 

2. Time consuming

You probably thought of this already, but just to confirm – yes, you may have to say goodbye to nine-to-five work setting until your small venture picks up the pace. I assure you that.

Having your own business is a very time-consuming activity because you have very minimal support and hands to fulfill the job. The good thing is that you have all the fruits of your endeavor for yourself once this venture succeeds.

 

3. Multitasking job

Small Business StartupThe business itself is a multitasking job. You are burdened with all tasks – planning, delivery, inventory, marketing, selling – name it! This is not as big a problem for single individuals, but this may take a big toll on people with families to take care of aside from their small business startup.