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The Pros and Cons Of Starting Your Own Business, Part 2

Part 2: Cons To Starting Your Own Business

Welcome back to the second in our two-part series on the pros and cons of starting your own business. While last time we detailed the ways that owning a business can be satisfying and fruitful as part of the pros of starting a new enterprise. In today’s post, we will take a step back to go into the reasons that give many pause before going into business for themselves. Here are some of the cons when it comes to starting a business.

Risk of failure

Unfortunately, new businesses are disproportionately more likely to struggle – and often fail – than existing enterprises. The first two years are typically the hardest, when profits can be slim to nil and expenses high. It can be difficult to watch your dream falter and see all your hard work go to waste – both emotionally and monetarily.

Significant investment

Getting a business off the ground requires a significant investment of time, resources and money. While bank loans and gifts from family and friends can help, the bulk of the hard work and investment will come from you as the business owner. This means long hours and few opportunities to take any meaningful time off in the early stages of your enterprise.

Inconsistency

New businesses are inconsistent and difficult to predict: revenue may be spotty, customers fickle and advertising confusingly ineffective. It may take time to get in a groove and discover what works best for your business – by which time, you may find yourself exhausted and in debt.

24/7 Commitment

Owning your own business does not mean taking off or taking a vacation whenever you want to, at least not until you have reached some level of success and profitability. And, reaching that level can take years of work and commitment. Owning a business can be like raising a child: It can be both extremely rewarding and extremely challenging. When a child cries you need to be there; the same is true for your business.

Lack of benefits

Unlike a traditional full-time job working for someone else, self-employment requires you to set up your own safety net. This means paying for your own health insurance, retirement and other benefit plans, as well as setting up these benefits for your staff.

Distraction from what you really want to be doing

Just because you got into business for yourself to make a particular product or provide a specific service doesn’t mean that the majority of your time will be spent actually doing that. Often, business owners find themselves preoccupied with the organization and administrative tasks, overwhelmed by the minutia rather than being able to focus on what brings them the most satisfaction.

Regulation and litigation

The biggest drawback to opening your own business is that the burden of compliance falls squarely on the business owner. There may be permits to obtain, training to receive and regulations to observe that, in the event of non-compliance, can result in expensive litigation. Furthermore, if your personal assets aren’t protected, any lawsuit or sanction against your business could result in losing the things you’ve worked so hard to get.

That’s where an experienced business attorney can help. The Law Offices of Donald W. Hudspeth, P.C. practices only business law. It does not do anything else. The firm has helped countless entrepreneurs set up and structure their new businesses. And, we have a “Start Up Packet” of helpful information, advice and articles on starting, buying and operating your business. Call us today to learn more.

Call 602-265-7997 or contact is available 24/7 through Chat Room on this website.

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Donald W. Hudspeth
Principal Attorney

Attorney Donald W. Hudspeth has more than twenty years’ experience practicing corporate and business law. Before attending law school, Mr. Hudspeth held a stock brokers license at the age of 21 and owned his own business at the age of 23. He was a business law professor at Arizona State University, West Campus, and has conducted classes and seminars for a number of higher institutions and organizations. Mr. Hudspeth has published two books on law and is the founder of the radio programs Law on the Edge and Law Talk.

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Brian K. Stanley
Of Counsel

Attorney Brian K. Stanley has more than thirty years' experience practicing corporate and business law. Brian also worked for Sandra Day O'Connor in 1976-1977; Formerly with the Phoenix firm of Jones, Hunter & Lerch as of the dissolution of that firm in 1979. (Also Member, Law Office of Brian K. Stanley, PLLC).

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Janae Ashley Perry-Meier
Associate

Janae Perry-Meier is a business and commercial law attorney focusing on international business. Janae handles both transactional and litigation matters, including: forming your business, drafting your contracts, franchising, business disputes, business divorce, mergers and acquisitions, private placements, securities compliance, and corporate governance. Janae also handles trademark registration, office action responses, and infringement cases.

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Michael David Malin
Associate

Michael Malin has been a practicing attorney in Arizona since 2013. He has represented clients through all stages of litigation. Prior to joining the firm, Michael litigated cases involving professional negligence, insurance bad faith, dram shop liability, personal injury and wrongful death, Indian law, probate, and criminal matters. Before attending law school, he worked for several startup companies in the then-nascent field of smartphone and tablet application development.

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Natalia Beard-Artemieva
Attorney

Natalia (Natasha) Beard-Artemieva has been a practicing attorney in Arizona since 2014.

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