New businesses have their own benefits as well as risks that the owner has to meet. There is a huge challenge in starting businesses. Examples of some of the leading businesses include Coca-Cola, Microsoft, and apple among others. Business starts out with a goal. There are also risks that the owner has to face and solve. The core objective of a business is to make profit and minimize risks (Bradley, 2010). In order to withstand the immense drawbacks that come with the business environment, the business people are supposed to be steadfast in order to maintain the focus required to achieve the desired goal since businesses come with many challenges. Firstly, all what is required to start up a business is just an idea and money.
One of the major benefits that one accrues from starting up a business is independence. This means that one can be able to do what one wants when he/she wants to do it. In such a case, an individual is not limited to the expectations of the employer. Human beings have to be treated with regard especially because of their rationality. However, when their personal spaces are violated, they tend to under deliver. Many people try to struggle with independence at their workplace without a break through. Other people consider being able to make their own decisions and pursue their own destiny to be an impressive accomplishment. If an individual starts a successful business, he/she becomes his/her own boss(Bates,2010). This means that you decide on what to do in the business, the items that you want to sell and how you are to carry out the activities of the business. In addition, there is high flexibility as individuals can change from one method or product to another. Making decisions in such a set up becomes easy; as he/she does not waste time, trying to look for consensus as it happens in an employee-employer setup.
In addition, one develops more skills and experience. For example, there are instances where one is likely to lose money, resources, or possessions. However, there is no way that an individual is likely to lose the experience and skills that one acquires over the period that one will be in his/her own business. Once an individual learns and knows that he/she has a business venture that is making a profit for them, then they will certainly make to develop it. Furthermore, a business can be used when one wants to earn an extra-income. At times, there are instances where the individual is likely to use the business for their livelihood. In addition, people also use businesses in order to exploit other available opportunities in the environment. In other instances, a business can be started when one aims at selling a new idea to other people. In such a case, an individual can use the business to market new ideas. When you start a business venture, it gives you the capability to manage your time the way you want. In this case, the businessperson will be able to balance between his work and life better(Weltman,2007). This will lead to work/life balance. Most of the times, individual use many hours bringing a lot of profit to other people’s companies. However, when one starts up his/her business, it creates a path through which he/she can be able to enjoy maximum profits that will be accrued from prolonged working hours. Businesses lead to financial independence. This happens if the person ventures into business for a long time and gains more profits through being able to deal with the existing challenges. It gives you freedom to be creative. From this perspective, when one starts his/her business, they are likely to do things in their own way. Sometimes an individual will take the risk of starting up their own ways of dealing with their own businesses. In the end therefore, they are likely to improve the way they deal with their business, thus encouraging diversification (Bradley, 2010). Diversification ultimately leads to more profit.
On the other hand, there are different aspects that one has to deal with before they stabilize in the business environment. Firstly, is the issue of cash flow. Businesspeople need to deal with the issue of cash flow since it is one of the greatest facets required to achieve success. For instance, if the business lacks cash flow for a specific period, the owner is likely to face many difficulties in maintaining it. Furthermore, the business is likely to face stiff competition from the other businesses especially when it is a new venture (Warda, 2007). Starting a business will consequently mean that one will engage in the business for long hours trying to get more customers. Moreover, there are other sacrifices such as family matters that one will tend to neglect while at the same time there is no guarantee of succeeding in business. There is delayed profitability, where it takes more time to create the business market, which may not be well established.
There is the risk of getting into disputes especially from suppliers and customers. Starting up a new business ultimately means that one has to develop a strong rapport between the two groups; the suppliers and customers. This will ensure the stability of the business. Given the fact that different people react differently to situations, one needs to keep warm relation with the potential customers as well as the suppliers (Warda, 2007). However, failure to achieve this, the business stands the risk of collapsing. Other risks involved are losing your business to natural catastrophes such as earthquake, fire, or flood.
Some of the benefits accrued from a business include independence, gaining more experience and skills among others. Some of the risks include natural disasters, lacking work/life balance, maintaining cash flow and others (Bates, 2010). Business people are not able to eliminate all the possible risks associated with businesses. Success is determined by the level of planning and preparedness that an individual has concerning the business that he/she wants to engage in.