disadvantages of a business plan to an entrepreneur

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14 Pros and Cons of a Business Plan

Should you create a business plan? Most people will say that you should have at least some sort of outline that helps you guide your business. Yet sometimes an opportunity is so great that you’ve just got to jump right in and grab it before it disappears. If you want funding or growth to be sustainable, however, there is a good chance that you’ll need to create a business plan of some sort in order to find success. Here are some of the pros and cons of a business plan to consider as you go about the process of creating and then running your business.

What Are the Pros of a Business Plan?

A business plan is a guide that you can use to make money. By understanding what your business is about and how it is likely to perform, you’ll be able to see how each result receive can impact your bottom line. With comprehensive plans in place, you’ll be prepared to take action no matter what happens over the course of any given day. Here are some more benefits to think about.

1. It gives you a glimpse of the future. A business plan helps you to forecast an idea to see if it has the potential to be successful. There’s no reason to proceed with the implementation of an idea if it is just going to cost you money, but that’s what you do if you go all-in without thinking about things. Even if the future seems uncertain, you’ll still get a glimpse of where your business should be.

2. You’ll know how to allocate your resources. How much inventory should you be holding right now? What kind of budget should you have? Some resources that your business needs to have are going to be scare. When you can see what your potential financial future is going to be, you can make adjustments to your journey so that you can avoid the obstacles that get in your way on the path toward success.

3. It is necessary to have a business plan for credit. In order for a financial institution to give you a line of credit, you’ll need to present them with your business plan. This plan gives the financial institution a chance to see how organized you happen to be so they can more accurately gauge their lending risks. Most institutions won’t even give you an appointment to discuss financing unless you have a formal business plan created and operational.

4. A business plan puts everyone onto the same page. When you’re working with multiple people, then you’re going to have multiple viewpoints as to what will bring about the most success. That’s not to say that the opinions of others are unimportant. If there isn’t any structure involved with a business, then people with a differing opinion tend to go rogue and just do their own thing. By making sure that everyone is on the same page with a business plan, you can funnel those creative energies into ideas that bring your company a greater chance of success.

5. It allows others to know that you’re taking this business seriously. It’s one thing to float an idea out to the internet to see if there is the potential of a business being formed from it. Creating a business plan for that idea means you’re taking the idea more seriously. It shows others that you have confidence in its value and that you’re willing to back it up. You are able to communicate your intentions more effectively, explain the value of your idea, and show how its growth can help others.

6. It’s an easy way to identify core demographics. No matter what business idea you have, you’re going to need customers in order for it to succeed. Whether you’re in the service industry or you’re selling products online, you’ll need to identify who your core prospects are going to be. Once that identification takes place, you can then clone those prospects in other demographics to continue a growth curve. Without plans in place that allow you to identify these people, you’re just guessing at who will want to do business with you and that’s about as reliable as throwing darts at a dartboard while blindfolded.

7. There is a marketing element included with a good business plan. This allows you to know how you’ll be able to reach future markets with your current products or services. You’ll also be able to hone your value proposition, giving your brand a more effective presence in each demographic.

What Are the Cons of a Business Plan?

A business plan takes time to create. Depending on the size of your business, it could be a time investment that takes away from your initial profits. Short-term losses might happen when you’re working on a plan, but the goal is to great long-term gains. For businesses operating on a shoestring budget, one short-term loss may be enough to cause that business to shut their doors. Here are some of the other disadvantages that should be considered.

1. A business plan can turn out to be inaccurate. It is important to involve the “right” people in the business planning process. These are the people who are going to be influencing the long-term vision of your business. Many small business owners feel like they can avoid this negative by just creating the business plan on their own, but that requires expertise in multiple fields for it to be successful. A broad range of opinions and input is usually necessary for the best possible business plan because otherwise the blind spots of inaccuracy can lead to many unintended consequences.

2. Too much time can be spent on analysis. Maybe you’ve heard the expression “paralysis by analysis.” It cute and catchy, but it also accurately describes the struggle that many have in the creation of a business plan. Focus on the essentials of your business and how it will grow. Sure – you’ll need to buy toilet paper for the bathroom and you’ll want a cleaning service twice per week, but is that more important than knowing how you can reach potential customers? Of course not.

3. There is often a lack of accountability. Because one person is generally responsible for the creation of a business plan, it is difficult to hold that person accountable to the process. The plans become their view of the company and the success they’d like to see. It also means the business plan gets created on their timetable instead of what is best for the business and since there isn’t anyone else involved, it can be difficult to hold their feet to the fire to get the job done.

4. A great business plan requires great implementation practices. Many businesses create a plan that just sits somewhere on a shelf or on a drive somewhere because it was made for one specific purpose: funding. When a solid business plan has assigned specific responsibilities to specific job positions and creates the foundation for information gathering and metric creation, it should become an integral part of the company. Unfortunately poor implementation has ruined many great business plans over the years.

5. It restricts the freedom you once had. Business plans dictate what you should do and how you should do it. A vibrant business sometimes needs its most creative people to have the freedom to develop innovative new ideas. Instead the average plan tends to create an environment where the executives of the company dictate the goals and the mission of everyone. The people who are on the front lines are often not given the chance to influence the implementation of the business plan, which ultimately puts a company at a disadvantage.

6. It creates an environment of false certainty. It is important to remember that a business plan is nothing more than a forecast based on plans and facts that are present today. We live in a changing world where nothing is 100% certain. If there is too much certainty in the business plan that has been created, then it can make a business be unable to adapt to the changes that the world is placing on it. Or worse – it can cause a business to miss an exciting new opportunity because they are so tunnel-visioned on what must be done to meet one specific goal.

7. There are no guarantees. Even with all of the best research, the best workers, and a comprehensive business plan all working on your behalf, failure is more likely to happen than success. In the next 5 years, 95 out of 100 companies that start-up today will be out of business and many of them will have created comprehensive business plans.

The pros and cons of a business plan show that it may be an essential component of good business, but a comprehensive plan may not be necessary in all circumstances. The goal of a business plan should be clear: to analyze the present so a best guess at future results can be obtained. You’re plotting out a journey for that company. If you can also plan for detours, then you’ll be able to increase your chances to experience success.

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The Disadvantages of a Business Plan

by Kenneth Black

Published on 26 Sep 2017

The advantages of a business plan are very clear: it provides direction and strategy for your business, is often necessary to get financing and is a way to keep employees on track. While these advantages are all valuable, there also are some disadvantages to a business plan. Understanding these and how to avoid or correct them is key in determining the overall success of any plan. Doing this takes time and energy, but not doing it can be risky in the long run.

Discouragement

In the world of business, there are so many unknowns that it is comforting to have something on paper that will help determine whether or not your business will be successful. Many people may get so discouraged by what is revealed in the business plan they give up before they even open the doors. If you see opportunities beyond what the business plan reveals, taking a risk may be the only way to find out if you're right.

Cutting Corners

Many business plans fail because those involved do not spend the time or energy, or have the expertise, necessary to make the plan comprehensive enough to have true value. Shortcuts are often taken, according to Belmont University. An incomplete business plan could lead you to invest resources unwisely and cause a financial collapse.

In business, time is money, and coming up with a business plan does nothing to directly sell a product or service. Therefore, many may consider the time it takes to develop a business plan as a big disadvantage, and it could be. Coming up with a comprehensive business plan could take 400 or 500 hours, according to Cayenne Consulting. If you work 40 hours per week, this process could take 10 straight weeks at a minimum.

Tunnel Vision

In some cases, a business plan may provide employees, or even the owner, with a case of tunnel vision. In this scenario, other avenues of business opportunity may not be explored. For example, if you are starting a chocolate shop in a tourist area, your business plan may focus strictly on the traditional retail side of the equation. You may ignore an entire Internet side business simply because it is not in your business plan. Having a plan that is too narrow in scope could be a big disadvantage.

Some service companies specialize in helping you write a business plan. In fact, a consultant will meet with you, get the details of what you hope to do and where you hope to do it, conduct all the rest of the research necessary and then write a plan. Depending on how comprehensive you want this plan to be, it can be a very expensive option.

In the end, choosing whether or not to write a business plan or have one written is a choice you, as the business owner, can make. While there are some disadvantages to a business plan, you may have no choice but to have one in the long run. If you can self-finance the business, this becomes less of a necessity, but very few people can do it.

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What are the advantages and disadvantages of a business plan?

Almost every business starts with a business plan. These documents are used to map out the steps you want to take to get your business off the ground. However, do these strategy documents work for all businesses?

Whether you’re an entrepreneur or an investor, business plans are considered an essential part of starting a new business . For business owners and other stakeholders, it acts as a manual that can be used to chart a business’ success. Similarly, business plans can generate confidence, helping to convince potential lenders that investment is a risk worth taking.

However, business plans can also be expensive and time-consuming to create. Additionally, there is also no guarantee that a business will succeed just because a sound plan has been put in place.

To help you decide if a business plan would benefit your new venture, this guide runs through the main advantages and disadvantages.

The advantages of a business plan

Although a business plan takes time and money to create, it can help save both in the future if done properly. Below we take a look at some of the key advantages of creating a business plan:

1. It helps you forecast future steps The primary purpose of a business plan is to give you (and investors) an idea of whether your business has the potential to be successful. By mapping out your next steps and setting milestones, you can spot strengths and weaknesses in your ideas and set targets. This is helpful as it may prevent you from proceeding with a business idea that may end up costing you money.

On the other hand, these initial forecasts may provide the positive projections you need to actually get started and even attract outside investment. Even if your business plan produces an uncertain forecast, it still provides a small glimpse of the direction your business wants to head in and how it may perform on the way. This is valuable information, both for business owners and third-party stakeholders.

2. It is required if you want to apply for credit In order to secure a business loan from an official lender, a business plan is essential. Most banks will not even meet with you to discuss financing unless you have a business plan to present. This is because financial institutions like banks and credit unions need a way to accurately gauge their lending risks.

A well-thought-out business plan gives you the opportunity to show lenders how organised and prepared you are. It should explain how your business will use any capital you are lent and how you intend to make repayments. This level of detail can help to instil confidence in your business by persuading lenders you are a good risk.

3. It helps you to identify future cash flow issues A business plan should contain detailed cash flow forecasts and analysis. This shows potential lenders how money is expected to travel in and out of your business. It can also be useful for owners to determine if/when the business is expected to have cash flow problems under certain strategies. Having this information at hand can make it easier to financially plan, ensuring the business is always properly funded.

4. It helps you to allocate resources One of the biggest challenges for new business owners is resource management. From how much inventory you should buy to setting initial budgets, these decisions can be difficult. A business plan encourages you to create a workable budget and allocate resources before you start spending. This ensures you can afford everything you need and you don’t overspend before your business can start making money.

5. It helps you better understand your competition Creating a business plan requires a great deal of industry research. While you may think you have a strong handle on what you want your business to achieve, only by analysing your competition will you be able to see the full picture. A business plan can help you produce highly valuable insights into competitor demographics. This includes existing consumer trends and preferences, as well as costing insights. These findings are not always viable without conducting business plan competitor analysis.

6. It can help to secure talent In order for a business to be successful, attracting talented workers is crucial. A business plan can help to secure this talent by setting out a clear vision for the business. From management to skilled entry level staff, by showing individuals the direction and potential of the business, you can start to build a strong and coherent team.

The disadvantages of a business plan

Business plans can be time-consuming and expensive to produce. On top of this, there is also no guarantee that they will be accurate or help you to achieve the investment you are looking for. With this in mind, below we outline a number of disadvantages when it comes to creating a business plan:

1. It may not be accurate Putting together credible business plans is a highly skilled process. For this reason, many businesses seek the help of experienced business advisors when creating one. However, even with the help of a broad range of expert opinions, there is no guarantee that what is produced will be accurate. Industries and even wider business climates can change very quickly. This means that even taking the time and money to create an in-depth business plan can be risky.

2. It can make you become ‘tunnel-visioned’ In a world where nothing is 100% certain, treating your business plan as an uncompromising manual is a bad idea. The fact is, they are nothing more than a set of forecasts. If followed religiously, these strategy documents can ultimately do more harm than good. This is especially true if you become tunnel-visioned by your business plan and fail to adapt when market forces and changing economic environments demand it.

3. It can waste precious time and money Creating a business plan can take a lot of time and money to produce. It may require the help of third-party experts, such as business advisors, lawyers and accountants, all of which will charge for their services. Additionally, it can also take you and other employees away from the day-to-day tasks involved with launching a new business. This can lead to precious resources being wasted on a task whose cost may exceed its benefits.

The above points show that although business plans represent an essential component for most new businesses, comprehensive plans may not be 100% necessary in all circumstances. Luckily, if you are looking to put one together but are struggling to know where to start, the Markel Law Hub can help. We have a simple, easy-to-follow business plan template for you to download. To learn how you can access the Markel Law Hub, click here .

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What Risks Does an Entrepreneur Face?

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Most entrepreneurs are risk-takers by nature, or at minimum calculated visionaries with a clear plan of action to launch a new product or service to fill a gap in the industry. On a personal level, many entrepreneurs take big risks to leave stable jobs to throw their efforts (and sometimes their own money) into launching a business.

For entrepreneurs, there is no guaranteed monthly income, no guarantee of success, and spending time with family and friends can be a challenge in the early days of launching a company. Here are some of the most common risks that every entrepreneur and investor should evaluate and minimize before starting a business.

Key Takeaways

• Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risks, reputational risks , and political and economic risks.
• Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risks by creating a realistic business plan.
• Entrepreneurs should also consider technology changes as a risk factor.
• Market demand is unpredictable as consumer trends can change rapidly, creating problems for entrepreneurs.

An entrepreneur will need funds to launch a business either in the form of loans from investors, their own savings, or funds from family. The founder will have to put their own "skin in the game." Any new business should have a financial plan within the overall business plan showing income projections, how much cash will be required to break even, and the expected return for investors in the first five-year timeframe. Failure to accurately plan could mean that the entrepreneur risks bankruptcy, and investors get nothing.

Entrepreneurs face many risks when they launch a venture, and they should take measures to insure against those that are most likely to affect them.

An impressive business plan will appeal to investors . However, we live in a dynamic and fast-paced world where strategies can become outdated quickly. Changes in the market or the business environment can mean that a chosen strategy is the wrong one, and a company might struggle to reach its benchmarks and key performance indicators (KPIs). 

Technology Risk 

New technologies are constantly emerging, particularly in the era of the Fourth Industrial Revolution. Some of these changes are characterized as "paradigm shifts" or "disruptive" technologies. To be competitive, a new company may have to invest heavily in new systems and processes, which could drastically affect the bottom line.

Many factors can affect the market for a product or service. The ups and downs of the economy and new market trends pose a risk to new businesses, and a certain product might be popular one year but not the next. For example, if the economy slumps, people are less inclined to buy luxury products or nonessentials. If a competitor launches a similar product at a lower price, the competitor might steal market share. Entrepreneurs should perform a market analysis that assesses market factors, the demand for a product or service, and customer behavior.

Competitive Risk 

An entrepreneur should always be aware of its competitors. If there are no competitors at all, this could indicate that there is no demand for a product. If there are a few larger competitors, the market might be saturated , or, the company might struggle to compete. Additionally, entrepreneurs with new ideas and innovations should protect intellectual property by seeking patents to protect themselves from competitors.

A business's reputation is everything, and this can be particularly so when a new business is launched and customers have preconceived expectations. If a new company disappoints consumers in the initial stages, it may never gain traction. Social media plays a huge role in business reputation and word-of-mouth marketing. One tweet or negative post from a disgruntled customer can lead to huge losses in revenue. Reputational risk can be managed with a strategy that communicates product information and builds relationships with consumers and other stakeholders.

Environmental, Political, and Economic Risk 

Some things cannot be controlled by a good business plan or the right insurance . Earthquakes, tornadoes, hurricanes, wars, and recessions are all risks that companies and new entrepreneurs may face. There may be a strong market for a product in an under-developed country, but these countries can be unstable and unsafe, or logistics, tax rates, or tariffs might make trade difficult depending on the political climate at any point in time.

Also, some business sectors have historically high failure rates, and entrepreneurs in these sectors may find it difficult to find investors. These sectors include food service, retail, and consulting.

The percentage of small businesses launched in 2018 that made it to their third year, according to the Bureau of Labor Statistics.

The U.S. Bureau of Labor Statistics found that of the small businesses that were started in 2018, 81.3% made it to their second year (2019), and 65.4% made it to the third year (2020). Entrepreneurs should expect to make some mistakes, some of which will be costly. However, with the right planning, funding, and flexibility, businesses have a better chance of succeeding.

Bureau of Labor Statistics. " Table 7. Survival of Private Sector Establishments by Opening Year ."

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Advantages and Disadvantages of Entrepreneurship

Entrepreneurship refers to the process of starting and managing a business venture in order to create value and achieve financial success. Entrepreneurs take on the risks of business ownership and are responsible for developing new products or services, identifying and reaching customers, managing employees, and handling all aspects of the business.

This article explores the advantages and disadvantages of entrepreneurship and why someone would want to become an entrepreneur.

What is entrepreneurship?

Entrepreneurship refers to the process of starting and running a new business venture. It involves taking on the risks and responsibilities of business ownership, such as developing a business plan, securing funding, managing cash flow, hiring employees, and marketing products or services. Entrepreneurs often bring innovative ideas and solutions to the marketplace, and are motivated by a desire to create something new or solve a problem in a unique way.

Entrepreneurship can take many different forms, from starting a small business, such as a private limited company, opening a franchise and becoming a franchisee, to launching a new product or service within an established business (as an employee). It requires a combination of creativity, passion, innovative ideas and business acumen, as well as the ability to adapt to changing market conditions and navigate the challenges of the business world.

Why would someone want to become an entrepreneur?

There are many reasons why someone might want to become an entrepreneur. For some, entrepreneurship offers the opportunity to pursue a passion or bring a new idea to life. Others are motivated by the potential financial rewards of business ownership, such as the ability to earn a higher income or build wealth over time. Still others are drawn to the independence and autonomy that comes with being their own boss, as well as the flexibility to set their own schedule and work from anywhere.

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Entrepreneurship can also offer a sense of personal fulfillment and growth. By taking on the challenges and responsibilities of business ownership, individuals can develop leadership skills, gain valuable experience in a variety of areas, and build confidence in their abilities. Many entrepreneurs find that the journey of building a business, and becoming a small business owner, is as rewarding as the end result, and that the lessons they learn along the way can be applied to other areas of their lives.

In addition to these personal motivations, entrepreneurship can also have a positive impact on society as a whole. By bringing new products and services to market, entrepreneurs can create jobs, stimulate economic growth, and contribute to the overall well-being of their communities. Many entrepreneurs are driven by a desire to make a difference in the world, and see business ownership as a way to do so.

Overall, entrepreneurship offers a wide range of potential benefits and rewards for those who are willing to take on the challenges and risks of business ownership. Whether motivated by passion, financial gain, or a desire for personal growth, individuals who choose to become entrepreneurs have the opportunity to create something new and make a lasting impact on the world around them.

It should be noted that starting your own business does not come without it's pros and cons, which we'll discuss in the next section.

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What are the advantages and disadvantages of entrepreneurship?

Entrepreneurship, and creating a startup can offer many benefits, but it also comes with significant challenges, risks and drawbacks.

Let's take a closer look at the advantages and disadvantages of entrepreneurship.

Advantages of entrepreneurship - Advantages of being an entrepreneur

Below are some of the key advantages of being an entrepreneur in 2024:

Financial rewards : One of the primary benefits of entrepreneurship is the potential for financial success. Entrepreneurs have the ability to create their own income streams and build a successful business that can generate significant profits.

Independence : Entrepreneurship offers the opportunity to be your own boss and work on your own terms. This freedom and flexibility can be incredibly appealing to individuals who are tired of the constraints of traditional employment.

Personal growth : Starting and running a business can be a significant personal growth opportunity. Entrepreneurs must develop leadership skills, problem-solving abilities, and the ability to adapt to changing circumstances.

Creativity : Entrepreneurs have the ability to pursue innovative ideas and create new products or services that can make a significant impact in the marketplace.

Job satisfaction : One of the key benefits of becoming an entrepreneur is the fact that you're the boss, and ultimately can decide exactly what you do, your working hours and other factors. You may also feel a highest sense of purpose and fulfillment working on your own business.

Disadvantages of entrepreneurship - Disadvantages of being an entrepreneur

Below are some of the key disadvantages of being an entrepreneur in 2024:

Risk : Starting a new business involves a significant amount of risk, in terms of both personal and financial risk. There is no guarantee of success, and entrepreneurs may face significant financial losses if their business venture fails. Entrepreneurs have to take risks, and knowing which risks to take relies on the experience, skills and knowledge of the entrepreneur.

Long hours : Starting and running a business requires a significant time commitment. Entrepreneurs often work long hours and may have to sacrifice their personal time in order to make their business venture successful, we refer to this as a poor work-life balance.

Cash flow : Cash flow can be a significant challenge for entrepreneurs, especially in the initial stages of starting a new business. It may take time for a business to generate consistent revenue streams, and entrepreneurs may need to rely on personal savings or loans to fund their business venture.

Adaptability : Entrepreneurship requires a good level of adaptability and proactiveness, since the business owner will need to create a business idea, business model and growth forecast. All of this then needs to be executed, despite the many challenges that will be faced along the way. Usually someone with a business administration degree has an advantage here, due to their skillset.

Stress : Although entrepreneurs have the freedom to work when they want, they are 100% responsible on the success of their business, and this ultimately causes stress. It is the role of an entrepreneur to deal with this stress, and find wats to negate it's impact. After-all, this is one of the largest disadvantages associated with entrepreneurship, as it can negatively affect a person's health. 

Importance of entrepreneurship for the economy

Entrepreneurship plays a crucial role in the economy for several reasons:

Job Creation : Entrepreneurs create new businesses, which in turn generate new jobs. This not only provides income for the entrepreneur but also for those they employ. This is particularly important in times of economic downturn or high unemployment.

Innovation : Entrepreneurs often bring new ideas, products, and services to the market. This innovation can lead to increased productivity and economic growth.

Competition : By entering the market with new products or services, entrepreneurs can challenge existing firms to become more competitive. This can lead to increased efficiency and productivity within the market.

Wealth Creation and Income Generation : Entrepreneurship contributes to the creation of wealth and increases national income. Successful entrepreneurs often become high-income earners who pay substantial taxes, contributing to national revenue.

Social Change : Entrepreneurs can contribute to social change by developing products or services that reduce people's dependence on outdated technologies. They can also improve the standard of living by creating affordable, safe, and valuable products and services.

Economic Independence : Entrepreneurship can lead to economic independence for both the country and the entrepreneur. It reduces a nation's dependence on imported goods and services and promotes self-reliance. Entrepreneurs also gain control over their financial future.

Resource Utilization : Entrepreneurship leads to the effective usage of a country's resources. As the number of entrepreneurs in a country increases, it becomes one of the most effective ways to use the resources of the country to the maximum.

Creation of New Markets : Entrepreneurs can create new markets, especially in response to changing trends and demands. This can lead to the development of new industries and sectors within the economy.

However, it's important to note that the impact of entrepreneurship can vary depending on the level of economic development of a country. In highly developed economies, entrepreneurs can accelerate growth, while in less-developed ones they may have less of a positive effect.

Entrepreneurship offers many potential benefits, but if one does decide to become an entrepreneur, you've got to realize that it comes with significant challenges and risks.

Starting and running a business requires hard work, dedication, and a willingness to take on the responsibilities of business ownership. From the initial stage, business owners must make key decisions which will either lead to success of failure of the business.

However, for individuals who are willing to take on these challenges, entrepreneurship can offer a path to financial success, personal growth, and creative fulfillment.

What are the major advantages of entrepreneurship? 

The major advantages of entrepreneurship include the potential for financial success, independence, personal growth, and the ability to pursue innovative ideas.

What are the major disadvantages of entrepreneurship?

The major disadvantages of entrepreneurship include risk, long hours, and cash flow challenges. It must be emphasised that risk is a disadvantage that can be minimised, with the help of a good business plan.

Who is an entrepreneur?

An entrepreneur is an individual who starts and manages a new business venture in order to create value and achieve financial success.

Is entrepreneurship a good idea?

Entrepreneurship can be a good idea for individuals who are willing to take on the challenges and risks associated with starting and running a business. It offers the opportunity to pursue a passion, achieve financial success, and experience personal growth.

What are some tips for aspiring entrepreneurs?

Some tips for aspiring entrepreneurs include developing a solid business plan, conducting market research, seeking out mentors and advisors, and focusing on building a strong brand and customer base.

Can entrepreneurship lead to business success?

Yes, entrepreneurship can lead to business success if the entrepreneur is willing to put in the hard work and dedication required to build a successful business. However, success is never guaranteed and there are always risks involved with starting a new business venture.

What are some examples of successful entrepreneurs? 

There are many examples of successful entrepreneurs, including Steve Jobs (co-founder of Apple), Bill Gates (co-founder of Microsoft), and Richard Branson (founder of Virgin Group).

What are some common business models for entrepreneurial ventures? 

Some common business models for entrepreneurial ventures include e-commerce, software as a service (SaaS), franchising, and brick-and-mortar retail.

How can entrepreneurs overcome the challenges of starting and running a business? 

Entrepreneurs can overcome the challenges of starting and running a business by seeking out support from mentors and advisors, developing a solid business plan, conducting thorough market research, and staying focused on building a strong brand and customer base.

What are some of the major advantages and disadvantages of small business ownership? 

Some of the major advantages of small business ownership include the ability to be your own boss, flexibility, and potential financial rewards. Some of the major disadvantages include risk, long hours, and cash flow challenges.

What are some of the competitive advantages of entrepreneurship? 

Some of the competitive advantages of entrepreneurship include the ability to pursue innovative ideas, adapt quickly to changing market conditions, and build strong relationships with customers.

What are some of the legal and regulatory requirements of starting a new business? 

Some of the legal and regulatory requirements of starting a new business may include obtaining business licenses and permits, registering with government agencies, and complying with tax laws and regulations.

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10 Biggest Disadvantages of Entrepreneurship (+Advantages)

• By Luisa Zhou
• Entrepreneurship
• Updated: June 4, 2024

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Being an entrepreneur has its perks, like freedom, flexibility, and fulfillment.

However, there are disadvantages of entrepreneurship, too.

And today you’ll learn about the biggest ones.

But I’ll also share how you can overcome them. (These are the same steps I’ve taught 1,000s of new entrepreneurs.)

Ready to get started? Let’s go.

The top 5 disadvantages of becoming an entrepreneur are…

• No fixed income 
• More stress  
• Risk of failure 
• More responsibility 
• Longer working hours

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10 risks and disadvantages of becoming an entrepreneur 

As with anything, there are risks to becoming an entrepreneur.

But don’t let the disadvantages of entrepreneurship scare you off.

Because there are ways to deal with and overcome them.

Let’s begin with one of the scariest disadvantages of entrepreneurship – the financial risk involved.

Financial risks 

I know that financial risks are among the most intimidating disadvantages of entrepreneurship. I mean, a whopping 82% of businesses either run into or fail because of money problems:

But if you do it right, your business can provide financial security.

The solution: Build a solid foundation by staying risk-averse and focusing on sales.

Any way you slice it, entrepreneurship is risky – but you can minimize that risk.

Get comfortable with things like budgeting, financial planning, and creating a consistent income .

And, above all else, focus on sales.

The best way to make sales is to focus on the low-hanging fruit – the people ready to buy from you right now .

I’ll walk you through making sales in this video:

Uncertain income

One of the biggest disadvantages of entrepreneurship is that income is never guaranteed. 

But what if I told you there’s a way to guarantee a steady stream of income while you grow your business?

The solution: Instead of quitting your job , start a side hustle.

I’m a risk-averse person. And there’s nothing riskier than giving up your full-time salary to launch a business.

So I didn’t.

Instead, I started my business as a side hustle and worked on it during my free time. 

I only quit my job when I’d earned enough to replace my salary.

The best part? I did it using skills I already had.

That’s right. A successful side hustle doesn’t need to be revolutionary. It just needs the skills and tools you already have.

And that’s why businesses like coaching, consulting, and freelancing are great side hustles. (Here’s my guide on how to start a coaching business. )

And here are some other side hustle ideas :

• Productized service
• Online courses
• Digital products

More responsibilities  

As a business owner, you don’t just wear a few hats – you wear them all . 

You’re responsible for marketing, sales, and management, to name a few. And while you can outsource most tasks, you’ll still have to step outside your comfort zone and learn new skills.

For some people, that’s one of the biggest disadvantages of entrepreneurship.

The solution: Getting into and growing your entrepreneurial mindset.

Successful entrepreneurs have a different approach to their beliefs, resilience, and motivation.

You have to have one, too.

It doesn’t always come naturally, and that’s okay! Start with the basics:

• Stop comparing yourself to others
• Set achievable goals
• Focus on what you can control

Here’s a full guide to growing an entrepreneurial mindset .

Long working hours 

Unfortunately, a lot of entrepreneurs don’t have great work-life balance. 

In fact, 1 in 5 entrepreneurs work 60+ hours each week .

That lack of work-life balance is one of the hardest disadvantages of entrepreneurship because you probably want to start a business to be able to enjoy your life more.  

But you can have a business and a life.

The solution: Build what I like to call a Freedom Business.

A Freedom Business leverages your existing skills and maximizes your profit per hour of work.

What does that look like? You can either increase your pricing based on your skill or create profitable digital products to be sold repeatedly.

First, choose a business model that turns the skills you already have into profit.

Then, streamline your time by building systems.

You’ll need two: A lead generation system and an automated sales process.

And finally, don’t be afraid to outsource! I know it’s your Freedom Business, but you can’t grow it without a team behind you.

I talk more about avoiding common disadvantages of entrepreneurship by building a Freedom Business in this guide .

Business failures  

The hard truth is that 90% of startups fail .

Why? Typically because they run out of money or there’s no market for the product.

But entrepreneurs don’t let failure hold them back.

They embrace it.

The solution: Overcome your fear of failure by looking at it as part of the process.

Yes, failure is one of the most painful disadvantages of entrepreneurship.

In fact, I failed a lot when I was first starting out. Dozens of people turned me down.

But if I’d seen that as an endpoint, I wouldn’t have gotten my first paying client.

The truth is, you have to fail to be successful. How else will you learn and grow?

For three tips to conquer your fear of failure, watch this video:

Stress and burnout

More than 2 in 5 entrepreneurs experience burnout – it’s one of the most common disadvantages of entrepreneurship.

But it is possible to build a business that doesn’t feel like a grind.

The solution: Overcome stress and burnout by doing what works best for you . In other words, throw out the rule book!

Your business decisions should all be fueled by excitement, which starts with building a business around something you love.

That means finding a niche.

And when you do, ignore what everyone else is doing and figure out what you enjoy. That’s the key to success.

For example, I used to hate social media.

But when I stepped back, I realized I didn’t have to use it even if everyone else was. I was already making great sales from things I actually enjoyed doing!

I talk more about avoiding business burnout in this video:

Confrontation with uncomfortable situations

Most of us go out of our way to avoid uncomfortable situations. It’s only natural.

But uncomfortable situations are just unavoidable disadvantages of entrepreneurship.

The solution: Get comfortable with being uncomfortable. 

Often, we’re so afraid of messing up or failing – of being uncomfortable – that we never even try.

The truth is there’s no tip or story I can share to ease that fear.

You just have to take that leap.

Remember: 

Almost everyone is uncomfortable with some aspect of entrepreneurship.

Hitting publish on my first few Facebook business posts was excruciating . I was uncomfortable with the idea that I could look stupid or that nobody would respond.

But I knew I had to do it if I wanted to be successful.

I talk more about being uncomfortable in this video:

Loneliness 

Over half of entrepreneurs feel lonely .

But reframing loneliness helped me to stop seeing it as one of the disadvantages of entrepreneurship.

The solution: Start thinking of your loneliness as a rite of passage to becoming an entrepreneur.

Loneliness isn’t a bad thing.

It gives you space to build your skills, resilience, and confidence. 

And once you do, people will start flocking to you. After all, successful people want to hang out with other successful people.

When I threw myself into my work, I realized the loneliness didn’t actually bother me. In fact, I found my work more enjoyable because of it.

The more I worked, the better my skills became. And I started seeing better results!

I talk more about loneliness in this video:

Difficult to start

I see it all the time.

People don’t start businesses because they don’t believe they have the time, talent, or right idea.

That belief is among the most damaging disadvantages of entrepreneurship because it derails your entire journey.

You do have what it takes – you just have to look at it differently.  The solution: Overcome your fear of starting a business by thinking of it as an extension of your skills rather than a new or revolutionary idea.

You just have to choose a business that uses your skills and takes little time to start.

For me, it was paid ads consulting. I already used those skills in my day job, and it only required a few hours every week.

You’ll notice I don’t offer that service anymore.

That’s because I always knew I wanted to help people build their businesses – but I didn’t have those skills yet. 

That didn’t stop me from launching a business, though.

Instead, I looked at my skills, chose one that was good enough, and boom! I’d launched my first business.

I used this as a stepping stone to the business I wanted to create.

At the end of the day, a “good enough” business idea is the single best way to start your entrepreneurial journey.

Regulatory limitations   

Regulatory limitations are disadvantages of entrepreneurship, and they are stressful. But they don’t have to be impossible to navigate.

The solution: You just need the right resources and professionals to help you understand them.

Those include:

• Accountants for big financial tasks like taxes and financial planning
• Bookkeepers for everyday financial tasks like payroll and invoicing
• Marketing and sales consultants for developing new strategies
• Business mentors for guidance and support

Fortunately, there are tons of free resources available, too.

Take the US Small Business Administration (SBA) . It has dozens of programs and services and is good for business plans and loans.

And SCORE offers mentors, workshops, webinars, and online courses to help you start and grow your business.

Nobody likes rejection, but it’s an inevitable part of entrepreneurship.

You get rejected all the time. 

By potential clients, people in your audience, people you pitch…

Solution: Figure out how to overcome the fear of rejection by getting used to it.

In other words, pitch yourself to as many people as possible and risk rejection.

I know this seems counterintuitive. But as someone who hated rejection, I can’t recommend doing this enough.

When you pitch yourself over and over again, you’ll get used to hearing the word “no.”

Eventually, it won’t matter.

Don’t believe me?

I got told “no” 30 times! But I continued to try, got used to hearing the word “no,” and kept going because it didn’t faze me anymore.

You now know about the disadvantages of entrepreneurship, but there are some important advantages, too.

I’ll tell you about them in the next section, so keep reading!

What are the advantages of entrepreneurship?

Even though there are some disadvantages of entrepreneurship, the advantages make it all worth it.

When you’re running a business, you don’t have to answer to anyone else . You’re your own boss.

Who hasn’t dreamed of that?

And I’d be lying if I said the money wasn’t an advantage.

Higher income

When you transition from employee to entrepreneur, you break free of a capped salary and experience unlimited earning potential. 

But it’s not just about the money or working for yourself.

Entrepreneurship allows you to create the kind of lifestyle that suits you . 

Want to take the afternoon off, work for a week in a new state, or sign off and go on vacation?

You can do it because a business allows you to have real freedom. Your life is on your terms.

Fulfillment

Entrepreneurs also have a greater sense of fulfillment in their careers – which is something that a majority of employees say they’re missing in their jobs . 

That’s because, as an entrepreneur, you get to focus on finding solutions to problems that matter to you and positively impact society. 

Personal growth 

But above all else, becoming an entrepreneur is like a crash course in personal growth.

You’ll constantly face new challenges, learn new skills, and work to make yourself better.

Most importantly, you’ll learn to shift your thinking and better overcome stress, barriers, and mental blocks.

So, yes, you’ll find risks and disadvantages of entrepreneurship if you look hard enough. 

But the rewards outweigh them all.

Next steps 

There you have it! 

A breakdown of the most common disadvantages of entrepreneurship and ways to overcome them.

And today, I’ll show you how to go from employee to entrepreneur with your own successful business.

You’ll find the exact steps I took in this FREE PDF:

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What is an Entrepreneur?

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About Luisa Zhou

Luisa Zhou has helped thousands of students build and scale their own profitable online Freedom Business. Fun Fact: She used to work as an engineer for the Space Station and holds a B.S.E. from Princeton. Click here to learn more about Luisa.

Hope you enjoy this blog post.

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Entrepreneurship vs. Employment: The Pros & Cons That 200+ Owners & I Weighed [Data]

Published: August 01, 2024

So you have a brand new business idea, and you’re considering venturing out on your own.

Before taking the leap, it’s important to consider entrepreneurship vs. employment and decide which path works best for you.

This piece dives into the pros and cons of entrepreneurship I uncovered from the 2024 State of Entrepreneurship Survey I ran, giving you all the information you need to decide between entrepreneurship and standard employment.

Table of Contents

Entrepreneurship vs. Employment

Entrepreneurship: the pros and cons, employment: the pros and cons.

Entrepreneurship and employment involve two very different lifestyles. Before we discuss the differences, I’ll start with definitions.

• Entrepreneurship involves establishing and running your own business or service. Your earnings will be the business’s profits.
• Employment includes hourly-rate or salary jobs. Here, you complete specific tasks and services assigned by an employer.

Entrepreneurs run their businesses and take on financial responsibilities. Meanwhile, employees work for a company and get a set pay rate.

Entrepreneurs handle expenses and business decisions, while employees focus on doing their best and helping the company succeed. Unless they work in accounting, employees rarely have to deal with any of the financial aspects of the business.

Now, let’s review the pros and cons of entrepreneurship and employment.

Becoming an entrepreneur has plenty of benefits that make it an appealing choice. Still, you should understand the drawbacks before taking the plunge. Review the pros and cons below to make an informed choice.

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Entrepreneurship Cons

1. maintaining a work-life balance..

I mentioned before that setting your schedule is one of the top reasons people became entrepreneurs, but maintaining a work-life balance is also the number one pain point that survey respondents said they struggle with.

This makes sense because both can be true at once. People who have mastered balance that works for them likely feel significant freedom. But, if you’re making sacrifices in your work or personal life, it can feel stressful and disheartening, especially since pushing yourself and not taking time for yourself can lead to burnout.

Evan McCarthy , President and CEO of SportingSmiles told me he faced this challenge when he started. He said, “I launched my company 15 years ago, and as a business owner, there's always a mountain of tasks to tackle. The main challenge I faced was finding a balance between my work and personal life…Looking back, I realize I should have paid more attention to my personal life. Taking better care of myself would have reduced stress and probably helped me focus more on growing the business.”

Pro Tip: A work-life balance looks different to everyone, but to me, the main idea is that you don’t have to sacrifice work or personal life to make room for the other. Setting boundaries, taking breaks, and setting realistic expectations are strategies I use to keep a healthy balance in my life.

2. Potential financial challenges.

Starting a business can be financially challenging.

In fact, 54% of our survey respondents struggle with earning and maintaining finances/money, primarily with accessing funding, budgeting challenges, and earning recurring revenue.

Entrepreneurship can also be risky. For example, if sales drop, you may have to pull from your savings to cover the difference, especially if you have employees to pay.

I know that any fluctuations can be anxiety-inducing, but there are things to do to stay on the right foot financially, like:

• Creating a budget (I strongly recommend our budgeting templates )
• Crowdfunding resources like Kickstarter to get financial backing
• Small business loans from local small business organizations and development centers
• Pitching to Angel investors

Pro Tip: Remember, entrepreneurship doesn’t have to be your only stream of income. If you're weighing the financial sacrifices of starting a business, consider keeping your full-time role. You can always dabble in entrepreneurship on the side. If profits skyrocket, you can make your side project a full-time job.

3. Initial costs.

Starting a business requires capital, and the average small business owner spends $40,000 in their first year of business. You also have to pay employee salaries, pay for needed supplies, and, most importantly, find funding.

If you have the savings or the means, you can cover upfront costs yourself; otherwise, you might have to take out loans that may come with high interest rates.

You’re responsible for securing the capital you need to start your business, which can prove stressful.

4. Covering salaries, insurance, and other expenses.

If you don’t have an HR department, you’re entirely in charge of people operations.

This includes paying employees, offering benefits, and ensuring contracts abide by state and local laws. If these are new responsibilities, you’ll have to learn how to get them done as you’re getting them done.

But you can also hire experts to take over specific duties; you’d just have to pay.

5. Added responsibilities can cause stress.

Employees have many people to reach out to with questions or to get support. As an entrepreneur, the future of your business is in your hands.

Wearing many hats can be stressful, especially if you’re balancing growing your business and, say, learning about compliance rules and payroll for your employees.

The good thing is that, with practice and dedication, some of the new tasks you have to account for as you start your journey can become second nature. And, as you scale, you can always hire specialists.

6. Dealing with taxes.

Taxes become more complicated when you run a business. Instead of receiving a form from your employer, you are responsible for calculating your expenses and sending them to your employees.

7. Business success isn’t guaranteed.

Even though you have hands-on control over anything that contributes to your business's success, it doesn’t mean it will succeed. The market might not be ready for or interested in your product, and economic changes that you have no control over can impact the success of your venture.

Standard employment may check all your boxes if you’re looking for greater stability and consistency.

However, every role has its challenges. To paint a better picture, I’ve created a list of pros and cons.

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Disadvantages Of A Business Plan

• by Nmesoma Emmanuel
• August 3, 2023

Table of Contents Hide

#1. false confidence, #2. lack of liberty, #4. time and resources, who should write a business plan, how to write a business plan, advantages of a business plan, disadvantages of a business plan faq, what is the disadvantages of a business plan, what are the advantages of a business plan.

Effective business planning is comprehensive yet adaptable, cognizant of its constraints. By contrast, poor business planning is sloppy and overreaching, putting a small business on the wrong track. In this article, we will talk about both the advantages and disadvantages of a business plan.

A business plan is a strategic document that outlines the business’s or startup’s strategic objectives and how it intends to accomplish them. 

In other words, a business plan is a written expression of a business idea. It will detail your business model, your product or service, how it will be priced, who your target market will be, and the strategies you intend to employ to achieve commercial success. 

When done properly and effectively, business planning is a priceless tool for charting overall direction and anticipating changes. However, business planning is not a panacea and can occasionally result in the emergence of new problems such as:

Creating a detailed plan for business operations has the potential to instill an unwarranted sense of security. Plans and projections are based on a planner’s or manager’s best guess about how a business will evolve; however, unforeseen circumstances, such as the overall economic climate and the entry of new competitors, will always exist. A business that is rigidly committed to a plan runs the risk of being unable to adapt to new threats or opportunities.

Businesses that are vibrant thrive in part because employees have the freedom and opportunity to be creative. Business planning is typically a top-down process; managers articulate missions and objectives, and employees are tasked with achieving them. This process may not provide employees with sufficient freedom to influence the company’s long- or short-term objectives. This lack of freedom is detrimental to the business, as it deprives itself of exciting new ideas. It is also detrimental to employees, as they miss out on opportunities for engagement.

While effective business planning strives for objectivity in order to produce honest and accurate results, it is nearly impossible to be completely objective and dispassionate when envisioning your business’s future course. Even the most well-intentioned planners’ results may be skewed by wishful thinking. Additionally, a manager or owner with a vested interest in securing financing from a bank or investor may inflate projections intentionally or even subconsciously in order to portray future potential that is likely to attract capital.

Planning a business can be time-consuming and costly. It may necessitate the assistance of outside professionals, such as accountants, lawyers, and marketing experts, and it may divert time away from more immediate benefits, such as short-term problem-solving. Businesses that lack additional funds to spend on professional services or additional time to devote to collecting and interpreting data risk squandering valuable resources on an endeavor whose costs may outweigh its benefits.

Establishing a business is not a precise science. Some businesses grow organically through trial and error, while others are meticulously planned from start to finish. 

Therefore, if you’re wondering whether your business requires a lengthy business plan, the answer is ‘no.’ That said, there are a few instances in which writing a plan makes sense and can help increase a business’s chances of success: 

• A business plan can be an invaluable tool for securing long-term funding for technology startups with no trading history, such as SaaS companies. 
• When entering a new and untested market — or when the market is simply volatile — it can be extremely beneficial to have a business plan to refer to when the road ahead is unclear. 
• For those who have an exciting business idea but have not yet refined it to a black-and-white proposition. Writing a business plan is an excellent way to examine a concept holistically and identify potential pitfalls. 

The first and most critical step in writing a business plan is determining its purpose. What audience are you attempting to reach with it, and why? The following are some critical points to remember when writing a business plan: 

• Are you looking to obtain a bank loan, private investor funding, or to recruit skilled professionals? 
• Include a synopsis of your business’s history, concept, and products or services. Maintain a professional and transparent demeanor. 
• Exaggerate your experience or abilities, but most importantly, do not omit information that investors require. They’ll discover it eventually, and if they discover you lied, they may withdraw their involvement. It is critical to establish trust. 
• Simplify how your business’s product or service works. 
• Keep an eye out for convoluted language and do everything possible to keep readers from becoming confused. 
• Concentrate on the benefits the business provides, how it solves the core audience’s problem(s), and the evidence you have to demonstrate that your idea has a market opportunity. It’s critical to discuss the market in which your business will operate and who your primary competitors are.
• Another critical component of writing an effective business plan is keeping it succinct. Concentrate solely on delivering the critical information that the reader requires in order to make a decision. They can always contact you later to clarify certain points.

Now let us take a look at the advantages and disadvantages of a business plan.

Advantages & Disadvantages Of A Business Plan

The advantages and disadvantages of a business plan demonstrate that while it is an essential component of a sound business, a comprehensive plan is not always necessary. The purpose of a business plan should be obvious: to analyze the present in order to make an educated guess about the future. You’re charting a course for that business.

A business plan is a road map for generating revenue. By gaining a thorough understanding of your business and its likely performance, you’ll be able to assess the impact of each result received on your bottom line. With comprehensive plans in place, you’ll be prepared to act regardless of what occurs during any given day. Consider the following additional benefits.

• #1. It provides a glimpse into the future.

A business plan enables you to forecast the potential success of an idea. There is no reason to proceed with the implementation of an idea if it is going to cost you money, but that is precisely what happens when you go all-in without considering the consequences. Even if the future appears uncertain, you’ll gain insight into the direction your business should take.

• #2. You’ll have a better idea of how to allocate your resources.

How much inventory should you have on hand at the moment? What budget should you set aside? Certain resources that your business requires will be scarce. When you have a clear picture of your potential financial future, you can adjust your journey to avoid the roadblocks that obstruct your path to success.

• #3. It is necessary to have a business plan for credit.

To obtain a line of credit from a financial institution, you must present them with your business plan. This plan enables the financial institution to assess your organization, allowing them to assess their lending risks. Most institutions will not even schedule an appointment to discuss financing unless you have developed and implemented a formal business plan.

• #4. A business plan brings all stakeholders together.

When you collaborate with multiple people, you’re going to have a variety of perspectives on what will result in the greatest success. That is not to say that others’ perspectives are irrelevant. When a business lacks structure, individuals with divergent viewpoints tend to go rogue and do their own thing. By ensuring that everyone understands the business plan, you can direct those creative energies toward ideas that increase your company’s chances of success.

• #5. It demonstrates to others that you are serious about this business.

It’s one thing to throw an idea out on the internet to see if it has the potential to become a business. By developing a business plan for that idea, you demonstrate that you are serious about it. It demonstrates to others that you believe in its worth and are willing to defend it. You can more effectively communicate your intentions, explain the value of your idea, and demonstrate how its growth can benefit others.

• #6. It’s a simple method for determining core populations.

Whatever business idea you have, it will require customers to succeed. Regardless of whether you’re in the service industry or selling products online, you’ll need to determine who your primary prospects are. After identifying those prospects, you can clone them in other demographics to maintain a growth curve. Without plans in place to identify these individuals, you’re left guessing about who will want to do business with you, which is about as reliable as blindfolded dart-throwing at a dartboard.

• #7. A sound business plan includes a marketing component.

This enables you to determine how your current products or services will be able to penetrate new markets. Additionally, you’ll be able to fine-tune your value proposition, ensuring that your brand has a stronger presence in each demographic.

A business plan is a lengthy process. Depending on the size of your business, this may require an investment of time that reduces your initial profits. While short-term losses may occur while developing a strategy, the ultimate goal is to achieve tremendous long-term gains. For small businesses operating on a shoestring budget, a single short-term loss may be sufficient to force them to close their doors. Here are a few additional disadvantages to consider.

#1. A business plan may prove to be unreliable.

It is critical to involve the “appropriate” individuals in the business planning process. These are the individuals who will have a long-term impact on your business’s vision. Many small business owners believe they can avoid this negative by developing the business plan independently, but this requires expertise in multiple fields. A diverse range of perspectives and input is typically required to create the best possible business plan, as blind spots of inaccuracy can result in a slew of unintended consequences.

#2. An excessive amount of time can be spent on analysis.

Perhaps you’ve heard the phrase “analysis paralysis.” It’s adorable and catchy, but it also accurately describes the struggle many entrepreneurs face when creating a business plan. Concentrate on the fundamentals of your business and how it will expand. True, you’ll need toilet paper for the bathroom and cleaning service twice a week, but isn’t knowing how to reach potential customers more important? Obviously not.

#3. Frequently, there is a lack of transparency.

Because a business plan is typically created by a single individual, it is difficult to hold that individual accountable for the process. The plans become their vision for the company and the level of success they desire. Additionally, it means the business plan is created on their schedule rather than the business’s, and because no one else is involved, it can be difficult to hold their feet to the fire to get the job done.

#4. A strong business plan necessitates strong execution practices.

Many businesses create a plan that sits on a shelf or in the trunk of a car for the sole purpose of funding. When a sound business plan assigns specific responsibilities to specific job positions and lays the groundwork for data collection and metric development, it should become an integral part of the business. Unfortunately, over the years, poor implementation has ruined numerous excellent business plans.

#5. It prevents the freedom you once possessed.

Business plans specify what should be done and how it should be done. A thriving business occasionally requires its most innovative employees to be given the freedom to develop novel ideas. Rather than that, the typical plan creates an environment in which the company’s executives dictate the company’s goals and mission to everyone. The people on the front lines are frequently denied the opportunity to influence the implementation of the business plan, which ultimately disadvantages the company.

#6. It fosters an atmosphere of incorrect certainty.

It is critical to remember that a business plan is nothing more than a forecast based on current plans and facts. We live in an ever-changing world in which nothing is certain. If a business’s business plan contains an excessive amount of certainty, it may render it incapable of adapting to the changes imposed by the outside world. Or, worse, it can cause a business to miss an exciting new opportunity because it is so focused on completing a specific task.

#7. No guarantees are made.

Even with the best research, best employees, and a comprehensive business plan on your side, failure is more likely than success. 95 out of 100 businesses that start today will fail within five years, and many of them will have developed comprehensive business plans.

From the above article, we can now understand what a business plan is all about, which includes both the advantages and the disadvantages. Now from both side, we can see that a business plan has some things in it that proves its advantages and also disadvantages to the persons writing it.

However, business planning is not a panacea and can occasionally result in the emergence of new problems such as:

• Lack of confidence…
• Lack of liberty

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Nmesoma Emmanuel

Emmanuel Nmesoma Praise is a Content Writer with an experience of 2years. Also, she is a business consultant having deep knowledge of business-related matters; Organised, and competent in her writing skills. A BSc holder in Education Biology in one of the most renowned schools, Nnamdi Azikiwe University, in Nigeria.

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18 Advantages and Disadvantages of Entrepreneurship

Starting your own business as an entrepreneur can be one of the most rewarding experiences that life offers. It is also important to keep a certain level of perspective about this process. Although a rare few can experience immediate success with their efforts, it is more accurate to describe entrepreneurship as the planting of an acorn.

You must first place the acorn in the ground to get the journey started. You will need to invest time and money into the resources which are necessary to help that seed grow. There are no guarantees that you will get results, but nothing will come your way if you don’t pay attention to this tree that you want to grow one day.

If the tree begins to rise from the soil, then all of the hard work and patience you put into that process will feel like it was worthwhile.

Some acorns refuse to turn into trees. Squirrels might dig up your idea and steal it for themselves. Most entrepreneurs find themselves trying something new within 1-3 years because their business doesn’t turn into a successful enterprise.

The advantages and disadvantages of entrepreneurship attempt to balance the risk of a new idea with the rewards that happen if it takes off. “Starting a company extracts so much energy and conviction that not having a clear-cut goal and meaningful mission can hamper your success,” said Sami Inkinen, co-founder of Virta Health.

Do you have what it takes to become an entrepreneur?

List of the Advantages of Entrepreneurship

1. Being an entrepreneur means you get to be your own boss. When you decide to follow the life of an entrepreneur, then you are giving yourself permission to pursue what you are passionate about in life. You get to be the person who is making every decision, pulling all of the strings as you push forward with this opportunity. You get to use your strengths and skills to make a real difference in your life and those in your community.

Some people stay in a bad job because they need to “pay their bills.” Some might “work for the weekend” as a way to justify their decision to stay in a place where they are miserable. It isn’t always easy to be an entrepreneur, and you might not ever get rich, but there is a better chance that you will be happy.

2. Entrepreneurs get to discover who they really are. Most entrepreneurs break out of the 9-5 daily grind because they become dissatisfied with office politics, the barriers to promotion, or an uninspiring workplace environment. You might be encountering all three of those issues right now. When you decide to follow a path toward your own business, then the only obstacles that get in the way are the ones that you allow to remain.

“Don’t assume that borrowing lots of money can make your startup fly,” advises Barnaby Lashbrooke, founder of Time Etc. “There are many things to the business other than investors, and it’s possible to succeed with your startup without breaking the bank.

3. Entrepreneurs get to dictate their own schedule (to a certain extent). If you like the idea of putting in 40 hours per week and then coming home to relax nights, weekends, and holidays, then being an entrepreneur is probably not the best choice to make. You are going to be working 20-40 extra hours each week if your goal is to be successful with your startup venture. “If you’re starting something on your own,” said Sallie Krawcheck, co-founder of Ellevest, “you better have a passion for it, because this is hard work.”

Where you gain an advantage is in the flexibility of your time commitments. You are not stuck trying to manage a 9-5 schedule. If you need to take a day off, then you get to do so. Want to take a vacation? Then make the time to go. You don’t report through a chain of command any more.

4. Every day is different when you’re working as an entrepreneur. Embracing entrepreneurship means that you are going to have a schedule that is different every day. There are no consistent routines in this world. Some experts would even say that if you experience two similar days in a row, then you should re-evaluate your business model. You have to stay hungry for every opportunity that comes your way. If you become complacent for any reason, then someone will take your place. This advantage can ensure your creativity.

“Do not focus on the numbers,” advises Cassey Ho, who is the founder of Blogilates. “Focus on doing what you do best. It’s about building a community who wants to visit your site every day because you create value and offer expertise.”

5. There are fewer restrictions to worry about in the world of entrepreneurship. When you begin to work for yourself instead of for someone else, then the independence that this experience creates is something that cannot be duplicated by any other professional opportunity. You are in total control of your destiny. You might earn more than some entrepreneurs, but less than others. Some people might work more than you, but others could be working less.

There are numerous structural options to consider too. You might choose to work from a home office. A shared office space might be a better solution for you to use. Entrepreneurs can work from a coffee shop, at the beach, or while taking a road trip with their family. “If we tried to think of a good idea, we wouldn’t have been able to think of a good idea,” said Brian Chesky, co-founder of Airbnb. “You just have to find the solution for a problem in your own life.”

6. You can still earn what you are worth as an entrepreneur in your early days. Many entrepreneurs like to bootstrap their ideas to help get them off of the ground. You might struggle to find investors for your idea, so any profits you earn go back into the company instead of your checking account. The reality of entrepreneurship is that a rational salary is always possible if you are willing to structure your finances around your basic needs. Your discipline in selling will lead you closer to the Promised Land.

“Selling is not a pushy, winner-takes all, macho act,” advises Subroto Bagchi, co-founder of Mindtree. “It is an empathy-led, process-driven, knowledge-intensive discipline. Because, in the end, people buy from people.”

7. Entrepreneurs can choose to pursue any idea they want. The only thing that limits your pursuit of a dream as an entrepreneur is your imagination. If you think there is an idea that you can follow, then go after it with everything that you have. Build that app which you believe could change the world. Tell your story by writing an autobiography. Sell your artwork online, even if everyone tells you that artists don’t succeed. Follow your instincts, and there is an excellent chance that a good idea will seem like a great one to all of your future customers.

“In the age of transparency, honesty, and generosity, even in the form of an apology, generate goodwill,” advises Alexander Asseily, founder of Jawbone. It’s okay to be embarrassed by the first iteration of your product. Entrepreneurship succeeds more often if you’re willing to launch early instead of waiting until it is too late.

8. You get to be more involved with your community as an entrepreneur. The flexibility in your schedule that you can have as an entrepreneur is an excellent way to become more involved in your community in a variety of ways. You can serve at your local food back, coach youth sports, or find other ways to tie your volunteer work to your efforts with a new business. These opportunities will help you to network with others, promote your personality and brand, and build your business while you are helping others at the same time.

“My advice is to focus on the importance of forging a long-term relationship, whether with colleagues, partners, or customers,” said Sheila Lirio Marcelo, founder of Care.com. “It is often easy to get caught up in short-term decisions.”

9. Entrepreneurs get to be the innovators of their industry. Entrepreneurship succeeds when you get to put an idea out to your targeted demographics before anyone else. Bringing something first to the market is an exciting adventure. It may not always be a story that ends in wealth, but it is one of the absolute joys of this process. You get to be on the forefront of problem solving for your community. You’re turning your passions into revenues. It doesn’t take a lot of money to get started either. As long as you have the drive to be an entrepreneur, then you can innovate.

“If you tune it so that you have zero chance of failure, then you usually have zero chance of success,” advises Reid Hoffman, co-founder of LinkedIn. “The key is to look at ways for when you get to your failure checkpoint, you know to stop.”

10. Every day is exciting in the world of entrepreneurship. No one can say it enough times. You are going to be working your butt off when you decide to become an entrepreneur. There will be 18 hour days that you’ll need to endure. The work will be harder and longer than anything you can remember doing in your life. Holidays are just another working day. Want to have a weekend free? Then you’ll be working from 3am to 11am so that you can spend the afternoon with your family.

The amount of excitement that you will experience during these long days is fuel that keeps you going. You never really know what to expect when you wake up in the morning. There are new problems to solve, customers to meet, and ideas to pursue.

List of the Disadvantages of Entrepreneurship

1. The world of entrepreneurship is going to dominate your life. Your productivity as an entrepreneurs is what will direct you toward success or guarantee your failure. There are no off days when you embrace this journey. You might have had fun playing Farm Town or Mafia Wars back in the day on Facebook, but that option disappears here. If you’re not working, then you’re not earning. There are no paid lunches, no weekends off, no holiday pay, and no benefits. It is you vs. the rest of the world.

You don’t need to be engaged 24/7 to have a chance at success in the world of entrepreneurship, but you will be working a lot more often. “My day starts with a yoga class, then I typically work from 8am to 5pm,” said Antonia Townsend, founder of Enclosed. “Then I take a break to play with my pup outdoors. Somewhere between 6-10pm, I usually put in another hour or two.”

2. Entrepreneurs do not have a guaranteed paycheck waiting for them. If you want to earn money as an entrepreneur, then it is up to you to make that happen. You don’t have a guaranteed paycheck waiting for you after every pay period like you would with a traditional employer. It is up to you to chase your money. That means you need to send out the invoices, find the people who don’t want to pay, and avoid the clients who think you should work for free because they can give you “exposure.”

Don’t fall for the trap of “free marketing.” Exposure doesn’t pay for your groceries. It won’t make your car payment. If you went to your mortgage company or landlord and said, “I have exposure to pay you this month,” what do you think would happen? Find your perfect client, then find more of them to start bringing in some profits.

3. The world of entrepreneurship requires leaders if you want to be successful. There are entire books written by industry experts on this specific disadvantage of entrepreneurship. You can boil down all of their advice to one basic observation: if you don’t have an internal drive that can push you forward every day and inspire others to follow your lead, then this isn’t the project for you to pursue.

Procrastination cannot live in this world. You must staple your pants to the chair, knuckle down on your work, and stay there until it gets done. “Some days you’re smiling and thinking you’re going to make this thing rock,” advises Hamdi Ulukaya, founder and Chief Executive Officer of Chobani. “Then the next day, a pipe breaks, and your costs look too high. You have to learn to keep your eyes on an ultimate goal. If you lose sight of it, then you need to get out.”

4. You must be patient with the process when you become an entrepreneur. People can claim anything on the Internet and pretend that it is true. It won’t take you long to find bloggers claiming to make millions of dollars each year. How about those affiliate marketers who earn $60,000 per month? If it seems too good to be true, then it probably is when you’re looking at the potential return you could earn one day.

Most entrepreneurs fail to earn $10,000 in their first year of operations. Earning nothing is more common than earning more than $50,000 in your first twelve months. If you can stay in business for five years, then an average salary is in the $75,000 range if you’re working at things full time.

5. Stress levels are high in the world of entrepreneurship. Meditation is the most common habit that people have when they pursue an idea as an entrepreneur. They make time for it because the stress levels are so high when you are scratching and clawing for a successful opportunity with everything that you’ve got. 1 in 3 people say that they worry all of the time about something when they’re working for themselves instead of someone else. Loneliness is a problem for a similar number of people in this field.

Exercise is another great option to consider if you need to limit this disadvantage. If you burn calories every day with a workout routine, then you are less likely to take out your irritation on others or yourself. Then try to greet each new day with an extra helping of gratitude.

6. There are taxation consequences to consider as an entrepreneur. If you decide to become an entrepreneur in the United States, then there is a good chance that you’ll start as a sole proprietor. It’s the cheapest and easiest way to begin a business when you’re bootstrapping. That means you’ll be paying the employer share of Medicaid and Social Security withholdings out of your earnings because you serve as both. Although there are new pass-through rules for the 2019 tax season that can lower your income tax responsibilities, most entrepreneurs find a higher tax bill waiting for them if their idea is profitable.

“Most first-time business owners forget to make quarterly estimated tax payments the first time they have self-employment income,” says Mike Piper, a CPA who writes about investing on sites like Oblivious Investor. “They’re used to have taxes withheld from their paychecks.”

7. Funding can be a significant problem for entrepreneurs. There are investors who might be willing to take a chance on your idea, but that is not a guarantee. You might find angels or venture capitalists who want to take a risk, although the odds of that are usually slim-to-none. You might attempt to do some crowdfunding, even though you might not get any money from this work.

Most entrepreneurs are self-funded. If you don’t have any money in the bank right now, then start small. “Start as small as you can,” advises Gretta Rose van Riel, founder of Hey Influencers. “When I started SkinnyMe Tea, I had $24 in the bank and I was entirely self-funded.”

8. Entrepreneurs still have a boss that they must manage. You might be free of the 9-5 grind and the workplace politics when you start working as an entrepreneur, but that doesn’t mean you get rid of the boss. Your investors are going to expect regular reports about your progress – especially if you have angels or VCs in the picture. Your customers will give your consistent feedback about the quality of your goods and services that you will need to hear. If there are returns, service issues, or problems with your supply chain, then you get to manage those issues too. You still have more freedom than the traditional employment relationship, but you must continue operating within a specific set of guidelines.

Verdict on the Advantages and Disadvantages of Entrepreneurship

Entrepreneurship can put you on a rollercoaster of emotions every day. It is an exciting world where your imagination is free to run wild. Every idea becomes a potential opportunity to find success. For many people who decide to embrace this lifestyle, the promise of more independence is worth the extra financial risks that are possible.

You will be working more hours than ever before if you decide to take on this journey. There will be days when you need to drag yourself out of bed. Your family might wonder what happened to you since you’re always in the office doing something. It is a challenging lifestyle to balance when you have family responsibilities too.

The advantages and disadvantages of entrepreneurship create the potential for you to live the life that you want. Even if it takes several years to start earning the profits you want, it can be a very happy life waiting for you.

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The Advantages and Disadvantages of Entrepreneurship

Are you thinking of starting your own  business ? Well, you're in good company. According to a recent study, 1 in every 3 Americans dreams of starting their own business. But before you take the plunge, it's important to understand the advantages and disadvantages of entrepreneurship.

In this blog post, let's explore some pros and cons of owning your own business. So, whether you're on the fence about entrepreneurship or want to learn more about it, keep reading!

What Are The Pros Of Entrepreneurship

There are many advantages to starting your own business. For starters, you'll have the opportunity to be your boss and call the shots. Here is a list of other pros:

You Can Be Your Boss

When you're ready to take the next step and become your boss, this is a great opportunity for self-discovery. Entrepreneurship allows us to pursue our passions and use our skills in creative ways that can impact those around us too!

The people who stay in a bad job often do so because they need to "pay their bills." Some might work for the weekend as an excuse, hoping that staying at this location will be easier and eventually lead them somewhere else where things can get better soon enough - even though we know how hard entrepreneurship really is!

The chance of being happy seems smaller when you're working your own business instead; however, there are plenty more opportunities available if done right, with endless possibilities waiting just around every corner--which also provides peace knowing what type(s)of person I want my future self-to to become.

You Can Make Your Schedule And Discover Yourself

Do you find yourself feeling burnt out and unfulfilled at your current job? Is a lack of creativity, passion or motivation in the workplace weighing on today's entrepreneurs like it's their 9 - 5 grind? Maybe it's time for something new!

When considering starting up an independent project, one should be aware if they will have difficulties with office politics getting ahead; having barriers to promotion because bosses don't want newcomers taking away any opportunities already established workers might've earned themselves over the years working together as well being excited about where things are headed professionally but not necessarily.

As an entrepreneur, you'll be free to set your hours and work when convenient. If you're a night owl, you can work in the evenings, or if you're a morning person, you can start your day at 5 am. It's up to you!

It's the best way to learn more about what you're good at and not so good at. It will also give you a sense of accomplishment that comes with taking risks and being rewarded for them.

Discover New Experiences And Meet New People

When you start your own business, you'll have the opportunity to meet new people and experience new things. It can be both a good and a bad thing. On the one hand, you'll get to meet new people who can help you grow your business. On the other hand, you may also meet some shady characters who are only interested in taking advantage of you.

You'll also travel to new places and see the world in a new light. It can be a great way to learn about other cultures and gain a new perspective on the world.

Make More Money

It is one of the most common reasons people decide to  become entrepreneurs . They want to make more money than they would at a traditional job. And while there is no guarantee that you'll become a millionaire overnight, there is potential to make a lot of money if your business is successful.

Of course, you also have the potential to lose a lot of money if your business fails. So it's important to do your research and make sure you have a solid plan before you start.

Remembers, it's not just about the money. It's also about doing something you're passionate about and making a difference in the world.

Do not focus on the money solely. Instead, focus on your passion and what you want to achieve with your business. The money will come if you're doing something you love.

No More Instructions From Other People

In a traditional job, you're often told what to do and how to do it. As an entrepreneur, you get to call the shots. You get to decide what your business will be about and how it will operate.

Of course, this can also be a double-edged sword. You may feel lost or overwhelmed without someone telling you what to do. But if you're the type who likes to be in control, this can be a great advantage.

The possibilities are endless when it comes to how entrepreneurs can work. They could choose an office space, shared workspace or coffee shop; there's no wrong answer!

The important thing is finding what works best for you and your needs, as well as those who will be collaborating on projects together (whether they're employees of yours vs. clients).

Pursue Any Idea You Want

Another great thing about being an entrepreneur is that you can pursue any idea. If you have a great business idea, nothing stops you from making it a reality.

Of course, this also means that there are no safety nets. If your business fails, you'll be the one who has to deal with the consequences. So it's important to be prepared for the worst and have a backup plan.

It's important to be upfront about the flaws in your product, even if it makes you feel embarrassed. Being honest with customers will help them see things more clearly and give you their trust - which can lead them down an endless rabbit hole of favorable reviews!

An Exciting Journey

Becoming an entrepreneur is an exciting journey. It's filled with ups and downs but ultimately a rewarding experience. If you're thinking about starting your own business, go for it!

There are a few key things to keep in mind if you want to be successful:

• Do your research
• Make a solid plan
• Be prepared for the worst
• Be honest with your customers

Although the days are long and varied, you will find yourself invigorated by your work. You never know what to expect on a new day; there's always something for everyone on this job! With these things in mind, you'll be well on becoming a successful entrepreneur.

Innovators Of The Industry

As an entrepreneur, you have the opportunity to be one of the innovators of the industry. You can create new products or services that change how people live and work. It is a great way to make a difference and leave your mark on history.

Of course, this also means that you're taking on many risks. If your business fails, you'll be the one who has to deal with the consequences. So it's important to be prepared for the worst and have a backup plan.

It's also important to be upfront about the flaws in your product, even if it makes you feel embarrassed. Being honest with customers will help them see things more clearly and give you their trust - which can lead them down an endless rabbit hole of favorable reviews!

You're In Control

Serve your community.

As an entrepreneur, you have the opportunity to serve your community uniquely. You can create products or services that improve people's lives or solve problems they didn't even know they had. It is a great way to make a difference and leave your mark on history.

It also means that you're taking on many risks. If your business fails, you'll be the one who has to deal with the consequences. So it's important to be prepared for the worst and have a backup plan.

What Are The Disadvantages Of Entrepreneurship?

Entrepreneurship has multiple benefits, but there are also some disadvantages that should be considered. These include:

Financial Risk:

One of the biggest risks of entrepreneurship is financial. When starting a business, there is always the chance it will fail, and you will lose money. It is why it is important to have a backup plan and to be prepared for the worst.

Entrepreneurship isn't for the faint of heart. You're not going to get a monthly salary and constantly hustle to make things happen. But entrepreneurship is also one of the most rewarding things you can do.

When you're an entrepreneur, you're in control of your destiny. You get to create something from nothing and build something that is yours. It's a lot of work, but it's worth it. So if you're thinking about entrepreneurship, don't let the lack of a monthly salary deter you. It's not easy, but it's worth it.

Time Commitment:

Another downside of entrepreneurship is the time commitment required. When starting a business, you must be prepared to work long hours. It can mean sacrificing time with family and friends and your personal life.

If you're the type who likes to have a set schedule, this can be tough to adjust to. But if you're willing to work hard, the rewards can be great.

Starting a business is also very stressful. You have to worry about everything from your product to your marketing to your finances. It can be a lot to handle and can take a toll on your mental and physical health.

Imagine if you had to worry about everything that goes into running a business. It can be a lot to handle, from the product to the marketing to the finances. And this stress can take a toll on your mental and physical health.

When working on your idea and trying to make something happen at all costs, there are high levels of stress that come with scratching through every inch possible until finally getting some traction up off the ground again, if ever so slightly - just enough where we feel confident taking another step forward into uncertainty without completely losing hope or faith along our journey ahead.

It can be tough to handle if you're not prepared for the stress of entrepreneurship. But if you're up for the challenge, it can be a great way to learn and grow.

Funding Could Be A Problem

If you're starting a business, you might not have the money you need to get started. It can mean borrowing money from family and friends or taking out loans.

The odds of finding investors willing to take a chance on your idea are usually slim to none. Angels and venture capitalists will only want you as their next meal ticket if they sense potential in what it could be worth investing into, so keep this risk factor on the priority list when looking for help!

It can be a tough burden to handle and put a lot of strain on your relationships. But if you're willing to work hard and be creative, you can find ways to get the funding you need.

While there are many risks associated with entrepreneurship, there are also many rewards. It can be a great way to learn and grow if you're willing to take the risk. And if you're successful, the rewards can be great.

So if you're thinking about entrepreneurship, don't let the risks deter you. It's not easy, but it's worth it.

Rounding Up

After taking a closer look at both the advantages and disadvantages of entrepreneurship, you may be ready to take your business to the next level. If you want to chat with someone about whether or not entrepreneurship is right for you and your career goals, our  strategic advisor board  is always happy to help.

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12 Reasons You Need a Business Plan In the new book "Write Your Own Business Plan," business expert Eric Butow breaks down how a solid business plan can save your startup during those tough early days.

By Dan Bova Sep 19, 2023

Running a business can be unpredictable, which is why having a solid business plan as a foundation is vital to surviving and thriving in the early days of your startup. Eric Butow, CEO of online marketing ROI improvement firm Butow Communications Group, has teamed up with Entrepreneur Media to write the second edition of our best-selling book Write Your Business Plan , providing you with a roadmap for success.

In the following excerpt, Butow explains how a well-thought-out plan can power your startup and help your vision come to life.

Business plans could be considered cheap insurance. Just as many people don't buy fire insurance on their homes and rely on good fortune to protect their investments, many successful business owners do not rely on written business plans but trust their own instincts. However, your business plan is more than insurance. It reflects your ideas, intuitions, instincts, and insights about your business and its future—and provides the cheap insurance of testing them out before you are committed to a course of action. There are so many reasons to create a business plan, and chances are that more than one of the following will apply to your business.

1. A plan helps you set specific objectives for managers.

Good management requires setting specific objectives and then tracking and following up. As your business grows, you want to organize, plan, and communicate your business priorities better to your team and to you. Writing a plan gets everything clear in your head before you talk about it with your team.

2. You can share your strategy, priorities, and plans with your spouse or partner.

People in your personal life intersect with your business life, so shouldn't they know what's supposed to be happening?

Order Write Your Own Business Plan Now and Get 1 Month of Free Access to Business Planning Software Liveplan Premium

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3. Use the plan to explain your displacement.

A short definition of displacement is, "Whatever you do is something else you don't do." Your plan will explain why you're doing what you've decided to do in your business.

4. A plan helps you figure out whether or not to rent or buy new space.

Do your growth prospects and plans justify taking on an increased fixed cost of new space?

5. You can explain your strategy for hiring new people.

How will new people help your business grow and prosper? What exactly are they going to do?

6. A plan helps you decide whether or not to bring on new assets.

How many new assets do you need, and will you buy or lease them? Use your business plan to help decide what's going to happen in the long term and how long important purchases, such as computer equipment, will last in your plan.

7. Share your plan with your team.

Explain the business objectives in your plan with your leadership team, employees, and new hires. What's more, make selected portions of your plan part of your new employee training.

8. Share parts of your plan with new allies to bring them aboard.

Use your plan to set targets for new alliances with complementary businesses and also disclose selected portions of your plan with those businesses as you negotiate an alliance.

9. Use your plan when you deal with professionals.

Share selected parts of your plan with your attorneys and accountants, as well as consultants if necessary.

Write Your Own Business Plan is available now at Entrepreneur Bookstore | Barnes & Noble | Amazon

10. Have all the information in your plan when you're ready to sell.

Sell your business when it's time to put it on the market so you can help buyers understand what you have, what it's worth, and why they want it.

11. A plan helps you set the valuation of the business.

Valuation means how much your business is worth, and it applies to formal transactions related to divorce, inheritance, estate planning, and tax issues. Usually, that takes a business plan as well as a professional with experience. The plan tells the valuation expert what your business is doing, when it's doing (or will do) certain things, why those things are being done, how much that work will cost, and the benefits that work will produce.

12. You can use information in the plan when you need cash.

Seek investment for a business no matter what stage of growth the business finds itself in. Investors need to see a business plan before they decide whether or not to invest. They'll expect the plan to cover all the main points.

To dig deeper, buy Write Your Own Business Plan and get 1 month of free access to business planning software Liveplan Premium.

Entrepreneur Staff

VP of Special Projects

Dan Bova is the VP of Special Projects at Entrepreneur.com. He previously worked at Jimmy Kimmel Live, Maxim, and Spy magazine. His latest books for kids  include  This Day in History , Car and Driver's Trivia Zone ,  Road & Track Crew's Big & Fast Cars , The Big Little Book of Awesome Stuff , and  Wendell the Werewolf . 

Read his humor column This Should Be Fun  if you want to feel better about yourself.

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13 Advantages and Disadvantages of Owning Your Own Business

For over three years before starting my business, I went through the gamut of emotions, from being excited about the idea to being terrified at the prospect of failure. 

I postponed my entrepreneurial journey, researching and brainstorming various ideas. Taking the leap into entrepreneurship required examining my strengths and matching them with customer needs. 

However, the real push came from analyzing the advantages and disadvantages of owning my own business. Here are what I discovered.

If you are also wondering whether to buy small businesses or build your own, which one is better for you , I wrote a whole article that I encourage you to read.

Advantages of Owning Your Business

The 2021 SBA statistics show that the US has 32.5 million small businesses and continues to grow. What is the traction drawing many into entrepreneurship?

Let’s explore some advantages of owning your business.

1- Independent Control

The idea of being my boss was a powerful motivator to start my business. Working as an employee, the dread of getting fired was real . I needed a company that would pay the bills without the monster of a termination letter weighing over my head. 

Furthermore, running my own business meant making my own decisions. I can take advantage of opportunities that will grow my venture without consulting anyone. 

2- Financial Rewards

Running a business means I get all the financial rewards from my hard work. Unlike employment, where my pay is only part of my effort, I will pocket all the profits from my investment in the business.  

For instance, a salesperson can sell a company’s product and make huge profits. However, they are only paid a commission, a fraction of the profits.

You can make money with your own business.  

3- Flexible Lifestyle

Monday blues, endless meetings about targets, and the office dress code seemed off for me. I wanted the freedom to create my own work schedule and focus on deliverables. 

Owning your own business offers you the liberty of a flexible lifestyle. You can take your kids to school, head to the gym before work, and take vacations without authorization. 

You choose where and when to work so long as you accomplish the necessary tasks and satisfy your clients. Owning a business can help you have a successful career and raise a family without neglect. 

Running your business also means no time wasted commuting to work. 

4- Creative Freedom And Growth

Employment may mean working on your assignment whether you enjoy it or not. Your manager may also ignore your creative idea to help the team perform better, resulting in stifled growth. 

Many people o jobs they don’t enjoy. They look forward to the end month for the reward and nothing more.

On the other hand, owning your business allows you to do what you enjoy. Your business is probably based on your skills, passion, and interest. This makes it easier to grow and gain personal satisfaction. 

Money becomes the result of your passion, not something you chase after. You can implement your ideas, know your customers intimately, and watch your business soar. 

5- Prestige

Owning a business is prestigious. Your company offers you the right of ownership, meaning potential clients will likely listen to you .

When your business accomplishes great things in the industry, you attract more attention as the boss. 

6- Tax benefits

Business owners also enjoy tax benefits in most countries . They are given tax breaks, allowing them to claim certain expenses such as travel costs, utilities, and office equipment costs. 

I encourage you to consult accountants to help determine which expenses you can claim to reduce your tax obligations. 

7- Building Equity

Owning equity is another reason to be self-employed. Owning your business allows you to build something you can pass on to the next generation.  

Since a business is an asset, you can sell it or invite investors to invest money. You can then use the funds to create a new company or expand your operations. 

Owning equity in your company can also help you retire early, allowing the board to run the organization. 

8- Improve Your Knowledge

As a business owner, you handle many challenges and grow your expertise in your niche in a way you wouldn’t otherwise . You are constantly exposed to situations that push you to learn more about the industry. 

Enhanced knowledge means you are a valuable asset to other upcoming entrepreneurs. Additionally, knowledge helps you grow your business and profits faster.

Now, this does not mean that owning your business has no challenges. This leads us to… 

Disadvantages of Owning a Small Business

If I have convinced you in the first section of this article, you may wonder why we should work for someone else. Before you are overexcited, here is a reality check: running your business has its shortcomings, and here they are. 

9- Financial Risk

Entrepreneurs are indeed risk-takers; however, the risk levels differ from one individual to the other . A business can go scarily wrong, and you may lose all your investments. 

If you invest your life savings or go into debt for your seed capital, you could lose all of it from bad business decisions. 

And the statistics don’t help either. A report by Fundera shows that 50% of startups in the US will fail after five years. Five years of hard work, hope, and money goes up in smoke five times out of ten. 

The risk of failing is equal to the chances of success, so there is no guarantee your will venture will pick.

10- Stress And Health Issues

I will be honest with you. With so many decisions on your shoulder, owning a business can be stressful.   You are the face of the company and have to handle many concerns such as competition, customer problems, expenses, employees, sourcing suppliers, late deliveries, and equipment breakdown. 

Dealing with these challenges can impact your health, especially for new entrepreneurs. 

As a business owner, you are responsible for unpleasant responsibilities like interviewing, hiring, and firing employees. Things can get more stressful during a recession when the economy is slow. 

11- Time and Commitment

In theory, people become entrepreneurs to spend more time with their families. However, in reality, you may have little free time for entrepreneurship. 

In fact, you may have less free time than in your 9-5 job, especially in the initial stages. Small business owners are passionate about their startups, prompting them to work long hours. 

One report by Gallup shows that 57% of business owners work six or more days, averaging 55 hours a week. 

Most small business owners work at night, on the weekends, or even during holidays. And with the internet and mobile devices, day offs may be unrealistic for entrepreneurs, at least at the outset. 

An important email from a prospective client pops up. What choice do you have? You respond because you need them to jumpstart your business. 

12- Unknown Variables

Opening a business involves superior planning, but multiple unknown factors can throw your company off course . For instance, unexpected political chaos can sink the economy into recession, causing customers to reduce spending. 

An unexpectedly strong competitor may enter the market space and snatch major clients from you.  Or a key business partner may pull out of a deal or fall sick, leaving you with additional responsibilities. These unknown variables can give you sleepless nights. 

13- Unstable Income

In the initial stage of your startup, you may operate your business at a breakeven or loss before you can realize profits . This means you may need another source of income to cater to your bills. 

These hard development times can discourage you. And if you didn’t get your finances in order before quitting your job for an entrepreneurial life, you may find it tough to survive. 

With a family to feed and no emergency fund to fall back on, owning a business is a tough road. 

What to read next:

• How to Become a Creative Entrepreneur? (Here’s how!)
• 10 Best Ways to Avoid Burnout in Your Small Business .
• How To Start a Business While Still Employed?

How to Increase Your Chances of Success as a Business Owner?

Based on the data quoted in this article, almost half the businesses fail before the fifth year. How can you increase your odds of success? 

Every entrepreneur faces the pros and cons of owning a business. However, the difference between successful and unsuccessful ones comes down to researching and planning your course before launching the venture. 

How solid and thoughtful is your business plan? A business plan should show the following:

• Your products and services
• Demand levels
• Competitors and their strengths and weaknesses
• Startup costs
• Sources of funds
• Potential challenges you will meet and how to overcome them
• A clear growth road map

While things may not unfold as planned, having a plan increases your chances of success. What are some challenges and benefits you have experienced as an entrepreneur?

Welcome all! I am Altiné. I am SO excited you are here! I am the guy behind The Entrepreneur Journey. I am a blogger, Amazon private label seller, and I share everything I have learned along this journey with YOU

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8 Advantages and Disadvantages of Entrepreneurship

Entrepreneurship is the process of starting and running a new business venture.

It involves identifying a need in the market and creating a plan to fulfill that need through the development and sale of a product or service.

It takes effort and convition for entrepreneurs to transform the idea to reality .

Entrepreneurship has become increasingly popular in recent years as more and more people seek the freedom and flexibility that comes with being your own boss, become an entrepreneur and have their own startup. 

However, starting and running a business also comes with its own set of challenges and risks, that could be considered as disadvantages of being an entrepreneur. 

In this article, we will explore the advantages and disadvantages of entrepreneurship, to give a comprehensive overview of what it takes to be an entrepreneur.

• Redaction Team
• February 18, 2023
• Entrepreneurial Ecosystem , Entrepreneurship

Advantages of Entrepreneurship

• Financial independence and potential for high income : One of the biggest advantages of entrepreneurship is the potential for financial independence and high income. By starting your own business, you have the opportunity to create your own income stream and to earn more than you would as an employee. Entrepreneurs don't fall into the idea of financial security, that they know they should focus the growth of the business by acquiring relevant assets.
• Flexibility and control over one's work : Entrepreneurship also allows for a high degree of flexibility and control over one's work schedule. You have the ability to set your own hours, choose your own projects, and make your own decisions.
• Opportunities for innovation and creativity : Starting a business also allows for opportunities to innovate and be creative. Entrepreneurs are able to identify a need in the market and create new products or services to meet that need, which can be a very rewarding experience.
• Potential for personal and professional growth : Entrepreneurship also provides opportunities for personal and professional growth. Starting and running a business requires a wide range of skills and knowledge, and entrepreneurs have the opportunity to learn and develop new skills. Additionally, the challenges and obstacles that come with entrepreneurship can serve as a personal growth opportunity.

Disadvantages of Entrepreneurship

• High level of risk and uncertainty : One of the biggest disadvantages of entrepreneurship is the high level of risk and uncertainty. Starting a business is a significant investment of time and money, and there is no guarantee of success. Many businesses fail in the first few years, and entrepreneurs risk losing their investment and their livelihood.
• Long hours and hard work : Starting and running a business also requires a significant amount of time and effort. Entrepreneurs often work long hours and have to wear many different hats. It can be a demanding and stressful process. It will require time until properly manage the business and have more time for your family or some hours per week dedicated to some rest.
• Difficulty in obtaining funding : Another disadvantage of entrepreneurship is the difficulty in obtaining funding. Many entrepreneurs struggle to secure the necessary funding to start and grow their business. This can be a significant obstacle for those just starting out.
• Personal and financial sacrifices : Finally, entrepreneurship also requires personal and financial sacrifices. Entrepreneurs may have to give up their steady monthly income, benefits, and job security. They may also have to make financial sacrifices, such as taking out loans or investing their savings.

Conclusion of Advantages and Disadvantages of Entrepreneurship

In this article, we have explored the advantages and disadvantages of entrepreneurship.

 We’ve discussed how starting a business can lead to financial independence, flexibility, and opportunities for innovation and personal growth, but also how it also comes with a high level of risk, long hours and hard work, difficulty in obtaining funding, and personal and financial sacrifices.

It’s important to weigh the pros and cons of entrepreneurship before starting a business.

Working as an entrepreneur and starting a business is a big decision and one should be aware of the potential rewards and challenges that come with it.

The world of entrepreneurship can bring great rewards in the long term, specially if you are focused and have decided to become an entrepreneur.

There are many resources available for those considering entrepreneurship, such as government-funded small business development centers, SCORE, and online resources like the Small Business Administration (SBA) website. These resources can provide guidance and support for starting and growing a business.

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The Top 12 Disadvantages Of Being An Entrepreneur

Top 12 disadvantages of being an entrepreneur.

Table of Contents

Entrepreneurship has become ‘sexy’ in recent years and everybody wants to be a business owner. The odds of being successful in this endeavour have also never been better with the rise of the internet, e-commerce and online courses.

Successful Entrepreneurs enjoy freedom in their lives. They don’t have bosses breathing down their necks, they can choose where to live and what hours they want to work.

With this freedom comes a whole lot of responsibilities and the life of an entrepreneur can be extremely tough, especially when you are starting out. If you don’t practice discipline as an entrepreneur, this will more than likely be reflected in your bank balance at the end of the day.

In thus articles, we look at the biggest challenges and obstacles facing entrepreneurs in today’s climate.

1. No Guarantee Of Success

When we start a business, we dream of driving a Ferrari down a coastal road in the sunshine without a care in the world and this couldn’t be further from the truth. Starting a business full time is like jumping off a cliff. You have to invest everything you have in the opportunity with the belief that you will succeed.

The reality of the matter though is that businesses are more likely to fail so the odds are actually stacked against you. As an employee or intrapreneur, you know you are going to get your wages and you if just do enough to keep your job; you are relatively secure.

Even if you work hard in your business, there is not guarantee that the money will come in to keep your business afloat so you need to work hard and work smart.

When you look at the current pandemic situation, businesses have been put out of business after 20 years of work through no fault of their own and while the opportunities for online business have never been greater, there is still no room for thinking it’s going to be easy. Setting up a successful business is hard and there is no guarantee of success.

2. Huge Amount Of Stress

Starting a business is one of the stressful undertakings you could ever imagine, especially if there is not enough money coming in to cover expenses. You better prepare for some sleepless nights if you want to start a business and this is true even if you have a lot of money.

Time is the most valuable asset we have as human beings and while you can buy everything else with money, time can not be renewed, we can’t get a refund so we want to spend it in the best way possible.

Passive income is the goal, to earn money while we sleep so that we can spend our time in a way that maximizes our return on investment. Getting a business to this level is the goal without doubt, but it is a lot easier said than done, you need to put robust systems in place, hire great employees or you can achieve passive income online through blogging, Youtube or even E-commerce when done correctly.

The point is, even if you have money, you will immediately become stressed if you are spending your time and it is not generating income. Even if you are not going to go broke, launching a business is an incredibly stressful time when you don’t know if it is going to work or not at the early stages.

3. Work Longer Hours

When I started out in business, I thought ditching the 9-5 would allow me to spend more time on my hobbies while also easily scaling the business and that I would have plenty of time for both. This is around the same time I cam face to face with the phrase:

“I ditched the 9-5 and ended up with a 95.”- Aidan Lehane

This means working 95 hours a week and it couldn’t be more true. While you can be an employee on auto pilot and think mostly about your hobbies and planning your weekends, a business requires your undivided attention almost all of the time to grow.

To this day, I still work 12 hours a day, 7 days a week even with enough passive income to comfortably survive. It is something that the entrepreneur quickly understands is needed and the successful ones will grow to embrace this crazy schedule and wouldn’t want to be doing anything else.

If you are not willing to invest long hours, entrepreneurship might not be for you.

4. You Have To Perform All The Functions Of Your Business Starting Out

A lot of people have the misconception when they start a business that they will be spending all of their time doing the things that they love. If you are a baker, you dream of baking the finest cakes and the sales and everything else will look after its self.

If you start out as a web designer like me, you think you will have an endless supply of customers and you can spend all of your time making web pages.

The first thing that is going to hit your square in the face is SALES. Sales is the life blood of any business and when you are starting out, you are your only sales person. As someone who is relatively introverted, getting out making sales was tough for me. I listened to a Youtube channel that said he went out door to door with fliers looking for business and that worked so that’s what I did. It was extremely hard but I eventually got sales. I then discovered the phone and that was even more successful but extremely tough. We moved onto other avenues like Business Exhibitions and Networking events as we expanded but it is all hard work and slow progress.

You are also in charge of Finance, tax, marketing, customer relationships and the list goes on and on. As you expand, you can outsource these roles but you have to know starting out that you will need to do all of the grunt work and find time to do all the operational work as well. There is no plain sailing, especially in the early days.

5. You Need To Deal With Rejection

Rejection is something you are going to have to get used to as an entrepreneur and you need to know that it is not personal. People may reject your service because they genuinely are not interested and that is perfectly ok. Other people might genuinely need your service and you might know this for a fact but they still reject you and this can be a little bit harder to take.

I started out calling around business to business and people rarely reject you to your face directly but some of them do and you quickly realise that has more to do with them that it does with you.

I then moved to the phone and cold calling which was a different story, rejection was everywhere on the phones and people had no problem being rude, hanging up and even being outright hostile over the telephone.

The phone was again very successful but hard work and stressful but I had a business that was up and running with a good mix of customers.

The fact is that if you are not able to deal with rejection, Entrepreneurship will be an extremely difficult undertaking for you. You need to be persistent and develop a thick skin to survive in the world of business.

6. Very Hard To Get Up And Running

Business are tough to get off the ground and it takes an incredibly amount of hard work, sacrifice and being uncomfortable to get those first customers.

My first website was for a friend that I did for free and then I went out into the field to show off my work and get more customers.

My first day out with the fliers and I was about 2 hours in with no success. I went to Mcdonalds on Grafton street in Dublin for a coffee and I decided to give it 1 more shot of going around to businesses. The very next one I went into I got my first customer, an antique dealer who needed a website.

On the second day with the fliers, I added another 4 customers and I was off and running.

Next up was the phones which was tougher but more successful as I was ringing people that I knew needed my services.

What I found was that the people ranked on page 1 getting all the business were happy to chat away and politely decline but the people on page 2 and 3 that really needed more traffic were rude, obnoxious and hostile. I started wondering were the people willing to listen there because they listened when they weren’t there or was it because they were successful that they didn’t mind having a chat. I concluded that the better people will naturally end up at the top of the pile.

Scaling from those initial customers is still extremely tough but you should start getting word of mouth inquiries and learning how to market online as you go after that initial phase but scaling comes with its own challenges.

7. Less Friends & Loneliness

As an employee it is easy to keep in touch with your friends and when they want to go out on a Saturday, you have no reason not to go. People know your boundaries, when you are free and you can get into a nice routine with a good social life.

Starting a business requires all of your attention and effort and if you want to be out in bars or out partying on the weekend, entrepreneurship might not be for you.

You may be used to working in an office and having people around you all the time but when you start in business, you are going to be spending a lot of the time on your own.

Your relationship with people changes too as everybody will need to come to terms with the new you and that is in business. Your friends, family, girlfriends and boyfriends might say things like, I like you the way you were and try to talk you out of starting a business.

They think they are doing the best for you or they don’t want to see you reaching a new level but you can end up with a break up, losing friends and even seeing less of your family as you tend to your new business which is just like raising a new born child.

If you can get used to being alone, it can actually be one of the most valuable skills you could ever master.

8. It Takes A Long Time & Growth Is Painful

When you start a business, you need to be in it for the long haul. Nothing is going to happen overnight but if you keep working persistently at the right things, you can grow a substantial business.

It might take 3-5 or even 10 years and there are many stages of that growth that each require a different level of skills and abilities.

Starting out as a one man band, you can do everything yourself, then you need to start outsourcing business processes. You then need to hire operations staff and move into sales. You then have to hire sales staff and move into management. You then need to hire management and become the CEO. You then can sell the business, seek investors or start expanding through investments and acquisitions.

A business that wants to stay small isn’t going to work in most cases and if you want to create generational wealth, you should start with this mindset from the very start.

The internet has created a new level of one man bands that outsource on the internet and can scale with strategic partners as opposed to staff but growing a successful company involves a lot of work and it is going to take a period of years, not months to make it happen.

9. You Take All The Risk

“Only an idiot would start a business with a loan” – Mark Cuban

Yet, that is what many people do and even if your business is not successful, that loan will need to be paid back. There is no need to go into debt to start a business in the current digital age but if you do, you need to be sure that it will work.

The best way to do this is to model success and seek advice from people who have done what you want to do already. Don’t dismiss their advice like it doesn’t apply to you, that advice may have come at a considerably cost to them and it is one that you can avoid or mitigate with proper direction.

At the end of the day, not only can you lose your capital but you can also lose the money you would have earned from working a regular job, The Opportunity Cost.

10. Doesn’t Suit Everybody – Intrapreneurs Can Create With Someone Elses Capital

Needless to say, without of the work involved in starting a business and all of the different roles you need to play, entrepreneurship isn’t going to be for everybody.

If you don’t fancy making sales calls or working longer hours, if you don’t want to sacrifice your social life, it might be best to stay as an employee.

Intrapreneurship involves creating new streams of income for a business where you are employed and it carries a lot less of the risk from doing it all yourself.

You could get a job in sales first to find out if it is something you can do or you can work to learn an industry which will have additional benefits from just working for a pay check.

Another option would be to start a business in your spare time and see if you can grow it to a full time income.

Starting a business is a full time commitment that wont suit everybody and requires a whole lot of though work and planning to do successfully.

11. Your Clients Become Your Boss

Many people hate the thought of having a boss and that is what pushes them into the world of business. Starting out though, they quickly discover that their initial clients become their new bosses and they can be even harder to please.

Until you can get operational staff into your organization, you are likely to be taking order directly from your customers and it can actually be worse than your old boss.

As you scale you can zero in on your ideal client and remove those clients that you dont fit the exact model you want to scale including troublesome clients.

12. Most Businesses Fail

The odds are against you when you start out, the worst thing you can do is think that it is going to be easy, it’s not.

Less than 10% of businesses make it to 5 years and only 10% of those businesses make it to 10 years.

It is probably best not to start a business that you will grow out of in time and you need to start something that is scalable and that you potentially sell down the road.

Ending On A Positive Note

It has never been easier to start a successful business, you just need to know the best ways to go about it and I have discovered plenty of them in the last 10 years, including blogs just like this.

If you are interested in starting a business, check out our top 10 books for aspiring entrepreneurs here or get in touch at [email protected] to set up an additional consultation for a limited time only.

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When Octavia Goredema made the decision to create her own tech startup, Fire Memos , roughly a year ago, the odds were not particularly in her favor. The main hurdles to overcome had nothing to do with her plan or business model, but rather her race and gender. 

Goredema is a Black woman, and, according to recent data from Crunchbase, Black women received a mere 0.34% of total venture capital funding in the U.S. in 2021. Goredema had never raised capital before, so she had the added disadvantage of being inexperienced in that regard. 

But, Goredema persevered and managed to raise a six-figure investment for her tech startup. 

In the hopes to empower others to chase their dreams of launching a business, Goredema spoke with GOBankingRates about her journey to becoming a highly successful entrepreneur. These are four key moves she made to secure a six-figure investment to launch Fire Memos .

She Created a Pitch Deck and Shared It With Her Mentor

“The first thing I did was create a pitch deck that detailed the business opportunity,” Goredema said. “I shared that with my mentor at Dell’s Women Entrepreneur Network, made updates based on his feedback and from there I started to raise capital.”

She Spent Several Months Fine-Tuning Products 

Goredema spent several months in development and invested time in reviewing, testing and fine-tuning Fire Memo’s initial features. 

She still does this regularly to ensure the business is as strong as it can be. 

“We continue to make updates and add new Fire Memos features every single week,” Goredema said. “It’s really exciting to be able to continue to add components that enable our subscribers to record and evaluate their progress at work.”

She Worked With a Highly Active Pre-Seed Investor 

Gordema received her first investment from Techstars, which she described as the world’s most active pre-seed investor, with a team that has invested in over 4,000 startups across the globe.

“Securing that investment required us to submit an application that included a pitch deck,” Goredema said. “We then took part in a series of interviews with the Techstars team. By the end of a comprehensive interview process we secured a six-figure investment and were accepted into the Techstars Anywhere accelerator.”

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She Hired a Legal Firm To Ensure Due Diligence 

Gordema didn’t go through the fine print of securing an investment alone. Wisely, she retained the services of a law firm to help make sure everything was clean and kosher.  

“Before an investor wires the investment funds, you will need to successfully complete due diligence,” Goredema said. “Due diligence refers to a comprehensive appraisal process that an investor will undertake before committing capital to your company.”

The legal firm Goredema hired specialized in startups — an important factor.

“Their team worked side by side with me to prepare everything we needed to close the investment,” Gordema said. “If you’re planning to raise capital for the first time, make sure to have an attorney on standby to work with you to complete necessary paperwork before, during and after you close your investment round.”

Gordema’s story is real-life proof that even when the odds are stacked against you, if you have a solid business plan, a savvy mentor, an experienced legal team and all the determination you can muster, the dream of being a successful entrepreneur can be realized — possibly more quickly than you may have thought.

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