So, many of you out there might be considering on opening up your own sole proprietorship type business. With any type of business you start out, there will be advantages and disadvantages. So let us go over the basic advantages of this particular business, sole proprietorship.
1. You are your own boss. Always and forever. What exactly does this mean? You call the shots when it comes to decision making in your business. If something succeeds, you can credit yourself and pat yourself on the back. At the same time though, if you fail at something, the blame is on no one else other than yourself. Also with you being your own boss, you get to choose your hours. That's particularly one of my favorite parts of being my own boss!
2. Sole proprietorship's are the least expensive business to set up. That's right! Not only are the least expensive type of business that you could start up, but it's also the easiest regarding things such as paper work and taxes.
Keep in mind, all profits you earn from a sole proprietorship business are yours. Therefore, you'll need to file those profits on your normal tax form every year.
3. Since you're the complete owner of your business in a sole proprietorship, all the money you earn goes directly to you. No one else! How great does that sound? It's like music to my ears at least. Keep in mind, however, if you have employees that you've hired then there will be a cut in your profits. The cool part however though is with the money you earn from your business, you can do what you please with it. My tip of advise would be to reinvest it into the business as long as sales/services are doing well for you.
4. Last but not least, another great advantage of a sole proprietorship business is the fact that you can pretty much quit the business when you please. There are certain things you'll need to do in order to completely disband your business all together. However, this type of business is the easiest to do so if things "just aren't working out for you."
The next post I'm going to spiel out the main disadvantages of owning a sole proprietorship business. As I've said earlier, all businesses have their advantages and disadvantages. You have to outweigh them yourselves to decide which is truly the best type of business for you and your needs!