Strengths and Weaknesses of a Small Business

Staring your own small business can be a dream come true. The ability to be your own boss can give you more flexibility in your work schedule and the opportunity to reach your fullest potential. Your talents, skills and creativity can be maximized without worrying that you are stepping on toes of your superiors.

There are many positive sides to running your own small business. Of course, there are also some potential pitfalls if you are self employed. The advantages to running small business can be quickly identified. If your goal is to become your own boss, you do not need to achieve success overnight. Starting a small business, especially one based out of your own home, allows you to slowly build a business while maintaining your full time job. You can work a few hours each day to develop and grow your business rather than quitting your day job all at once. When your business becomes successful enough to support you and your family entirely, you can resign from your other job. If your business is not a success, you are not out of a job.

Most small businesses require very little start-up money. This is a big advantage for anyone who does not have much money to invest in a business but who does have the work ethic and talents to create a lucrative business. There are many online business opportunities that require little more than a home computer and Internet access. Small businesses generally have low operational costs. A larger percentage of revenue from a small business can be converted into profit as opposed to revenue from a big business.

Many small businesses are based right out of your home. You can provide freelance services (such as web design, programming or freelance writing) online. There are affiliate programs and multi-level marketing programs available to people who have good sales and/or people skills. Individuals with training in Medical transcription, coding or billing can work from their home computer. There are endless opportunities for individuals who want to work from home. The ability to work at home and spend more quality time with your family is another big advantage to running a small business.

Small business owners typically have less money to invest on advertising. This can correlate into an advantage. Small businesses need to find creative ways to reach their customers. They usually offer a more personalized approach to interacting with clients. Customers who are treated like family are more likely to return to that business in the future. Small business owners and people who are self employed can take the time to get to know each customer and provide a higher level of customer service.

Of course, in some cases having limited funds for advertising can be a disadvantage. As a small business owner it can be difficult to reach enough potential customers to establish a successful base of customers. Potential customers might be less likely to do business with a small business that does not offer a well known brand of products or services. Some clients will give their business to the “bigger guy” with the name they recognize.

One of the largest disadvantages for small business owners is the potential misuse of money. Many business owners invest their own money at the start of a business or if the business falls upon hard times. If money is not used wisely, the business owner can take a hit to their own personal wallet if they have floated the business cash from their personal accounts.

Small businesses and work from home opportunities are becoming more prevalent with so many advantages. It was once common for large numbers of small businesses to fail, however, times are changing as people are learning how to make their small business a success.


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