What are the pros and cons of owning and operating a small business?
Answers:
Small business is a good thing but only depending on what the business is and where it's at. i live in a small town in Arkansas and keep a low profile but receive a good profit. one thing I'm careful not to do is get greedy. I'm doing well and that's all I need.
Pros:
A small business needs a small capital that the owner can easily put up without resorting to borrowing from banks/lending institutions. It is not labor intensive - a minimum of emplyees/workers will be needed thus less cost on wages and employee benefits. Being small, it will be manageable. There will be less tax burden.
Cons:
With a small busines, one can only cater to a limited market and have less opportunity to expand or diversify. Sales income will be smaller and so with profit. A small business will lack resources to be competitive.
There are far too many points to be considered to answer this question here. There are things such as how you wish to structure the business eg sole proprietor, partnership, or corporation. Do you intend to employ any staff? What licences or permits do you need. How do you plan to take a vacation? Financing the business. Pricing your products etc, etc.
This is only the tip of the iceberg. Other questions and answers are discussed at the site below where there are a number of articles on starting a business.
Agreed that the question is too broad. There are so many different "types" of small business and each would have pros and cons. For example - owning a small retail shop, totally different pros and cons than the type of business my husband and I own - exotic car rental.
Either way, one big con is it can be extremely stressful, it's hard to get away when you are the only ones running it, etc.
Pro - it's YOUR business and you aren't answering to someone else!
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