You may well have the Entrepreneurs DNA inside your genetic makeup – however, before rushing into your bosses office with a resignation letter and a few choice words, it’s worth ensuring you know all the perfect pro’s and cautious cons of SME ownership. While the rewards are self evident, you may have to risk and sacrifice more than you think to get them…
The Pro’s Of SME Ownership
The Satisfaction Of Being Your Own Boss & Building Your Own Empire – Those hailing from a big corporate background will be only too aware that they are but tiny cogs in a huge machine. Even as you rise through the ranks within a large corporation, your performance and decisions will rarely impact upon the destiny of the organization as a whole. In contrast, being the leader of your own empire offers you that very opportunity.
Assert Your Own Core Values Into Your Business – Every company has a culture, and core values that are often closely correlated to those of the founders. As the owner of your own small business, you can create a culture that better reflects your own core values.
Take A Bigger Share Of The Profits – Many talented employees bemoan the fact that they work incredibly hard and contribute lavishly to the company bottom line, but receive proportionally far less by way of financial rewards. As your own business owner, you have the power to siphon off more of the company profits, and enjoy a greater share of the rewards you helped create.
Convenience & Self Fulfilment – As an employee in someone else’s business, you can never create a working environment that fits you like a glove. While the startup process for any business can be stressful and time consuming, once a good business system is set-up and profits are coming in regularly, you can create a better work like balance for yourself. After all, no one can grant you more flexible working conditions than yourself. Additionally, there is far more self fulfilment in creating your own business than working to improve someone else’s.
Command Respect – As the head honcho of your own business, you’re bound to court much more respect than just another worker at just another company. People respect business owners.
The Cons Of SME Ownership
Burden Of Success On Your Shoulders – It’s a huge responsibility to lead your own company. Aside from being mandated to make the startup a success for your own sake, there will be several additional stakeholders that you are ethically responsible for. Such as your workers, suppliers, customers and investors.
Competitive – As an employee, you only have to focus on your own job spec. The wider performance and woes of the company are outside your pay grade. Not so as a business leader – you have to go toe to toe with intelligent competitors who are after your market share. This can be a continual source of stress and tension.
Continually Having To Reinvent Your Business – As an SME owner, you’re likely to find that trends change and your customers may well flip to competitors if you do not keep up. Coping with change can be difficult. It means continually evaluating trends, and more often than not stumping up investment to aid any changes you need to make to your products and services.
No Guarantee Of Success – Just as you can take more profits during the good times, you’ll take an aggressive haircut during bad times. There is often no set pay when you start up, and if your business stutters and fails it could be a whole load of time and money lost.
Master Of All Trades – As an SME owner, you’ll have to master a lot of disciplines very quickly. Familiarity with products, sales/marketing, accounting and more are all crucial.
If the pro’s exceed the cons in your eyes, and you believe you have the Entrepreneurs DNA – SME ownership should suit you down to a T.