Search Site
Menu
Office Location :  3200 North Central Avenue, Suite 2500, Phoenix, Arizona 85012
We are open and ready to serve you.
We offer video, phone and email consultations. Litigation and transactions work can be done remotely. You never need to come to the office.
Click Here to Learn More on Covid-19, Contracts and Defenses
Free Case Intake and Evaluation 866-696-2033
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.

Leave a Reply

Your email address will not be published. Required fields are marked *

What others are saying about us
  • "I would recommend Mr. Hudspeth unequivocally. Not only is he an outstanding business attorney, he also provided me with access to a divorce attorney. Thanks to his skill, and resources available outside the Phoenix law family, I was successful in challenging a “family law” mediation that was particularly and grossly unfair." - Chandler, Arizona Private Individual

  • "Thank you for the work you have done in creating these documents. It is always a pleasure dealing with this firm!" - J. P.

  • "An excellent response. Masterfully prepared. Thank you." - El Paso, Texas Real Estate Investor

  • "Glad about meeting with Don. Felt so much better, better than in 15 years. Really appreciated the conversation." - RH, Phoenix Manufacturing Company

Donald W. Hudspeth Attorney Photo
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.

Robert J. McGee Attorney Photo
Robert J. McGee
Associate Attorney

Robert J. McGee is an Arizona native who has been practicing law since 2014. Robert’s primary experience is with all aspects of intellectual property – trademarks, copyrights, trade secrets, and patents. Robert has substantial additional experience with cyberlaw. He is an avid collector of esoteric knowledge and always takes an interest in the details of how each client’s business works.

Mark S. Hamilton Attorney Photo
Mark S. Hamilton
Attorney

About Attorney Mark S. Hamilton has experience handling all aspects of civil and commercial litigation in federal, state, and tribal courts at the trial and appellate levels. Practice Areas Business litigation Commercial litigation Education University Of Hawaii Wm. S. Richardson School Of Law, Juris Doctor - 2002 University Of Hawaii, Master Of Arts In Asian…

  • Preeminent AV Rated
    Client Distinction Award
    Bar Register
    AV Rating
    The Arizona Republic
  • Newsweek
    Arizona Sate University
    Top Rated Lawyers
    Client Champion
    McAfee Secure
  • Lawyers Of Distinction
    2020 issue of AZ Business Leaders

Our firm now offers a scholarship program for ASU first and second year law students.

The scholarship is awarded to students for academic merit with an interest in business and business law. Candidates may have majored in fields other than business, have taken a break between college and law school, or have had exceptional life experiences.

Pay Your Bill Online

Use our easy-to-use and secure online payment feature to pay your bill. We accept all major credit cards.

Pay Your Bill

Contact us

Quick Contact Form