Before you commit to making extra money or pursuing your goal of starting and owning a business, there are a few things you should know. There are advantages, which you can build on to make your venture a success, and there are disadvantages, things you should watch out for. The opportunities will depend on the type of business you begin.

If you start something that you cannot finish, then the disadvantages will take precedence and you will be unhappy. But if you do something that you really enjoy doing, owning a business will be a positive and rewarding venture, So take a good look at the advantages and disadvantages of having a business and make sure you make the experience a positive one.

Advantages

· Gain financial independence - this is one area that really depends on the effort you put into your business. No one can expect to get rich without putting forth the effort needed to make the money. You must also do whatever it is you do, good and to the satisfaction of your customers.

· Be your own boss - working for yourself helps you to establish your own sense of responsibility and personal discipline, which is positive for you.

· Avoid restrictions based on race, gender, age or lack of formal education - Never again worry about who else could be getting the position you wanted or knew you were more qualified for. Be an expert in your field.

· Work from the privacy of your home - establish your own policies and procedures and make your work environment as pleasant as possible.

· Do what you really like to do - this is a chance to pursue your dreams so carefully choose what it is you would really like to do. If at all possible, make a contribution to your community where it lacks the most.

· Take advantage of your talents and skills - This is a chance to show everyone what you are best at. A chance to expound on your abilities and educate yourself in something worthwhile.

· Achieve significant tax advantages - the government offers many tax breaks to small and home businesses. Take advantage of these breaks.

· Feel personal achievement - improving your self-confidence and achieving your goals is one of the keys to a productive and happy life.

· Employ family members and friends - Be a part of the solution and contribute to the overall GDP of the country and to others financial matters.

· Work when you want to work - you will have the ability to plan productively and use your time wisely. Set hours based on your own internal time clock.

· Travel - learn about the city you live in by traveling to other businesses. Even travel about your state as your business grows and even travel to other parts of the country for business prospects.

· Have a good time - Most of all, you can enjoy what you do and never have to worry about being laid off or fired.

In any business there are set backs, slow times, and potential problems, but nothing that you cannot handle if your business is in the area of your expertise. Some of these setbacks are nothing that cannot be overcome without a bit of planning and careful observation of your market. Below are some of the disadvantages of owning your own business.

Disadvantages

· You will be responsible to your creditors and customers - however, if you do what you do very well, keep good records, and have effective and positive customer service skills, you can succeed easily.

· Possibility you could lose money if you go into it without a solid plan - sometimes people want their businesses to grow too quickly and they sink family money into areas that do not prosper as quickly. It takes careful planning and the skill of money management to overcome this obstacle.

· Less time for family and personal life - businesses take time from your daily life, especially in the beginning, and other people like family and friends may feel you are neglecting them. But sacrifice is the key to success.

· You and your family may have to do without some things until the business grows - not only does a business take personal sacrifice but some material sacrifice also. The luxuries that you once enjoyed may have to subside until the money starts evening out.

· Income may vary from period to period - depending on the type of business you start, like a seasonal one, some times could be slower than others depending on the goods or services you offer. This is a good thing to consider when starting out.

· You make all the decisions and carry all the worries - Unless you have a spouse or partner who support you and share some of the burden, you will have to make all the decisions, and the right ones at that. Counseling is a good investment for any business.

· You must make contacts and sell your product - marketing is another key to success. You must market and get the word out about your business or you will have no business. Continuous advertising is important.

· There will be paperwork and business records to keep up with - diligence and proper record keeping can keep out-of-hand paper work to a minimum. Also, knowing the recent tax laws and business procedures in your local area can help your profitability.

· You will have to perform task you may not like to do - for example, selling, or making phone calls, or even cleaning up around the office are some things people may not like to do, but is necessary for you until you can afford to hire someone to help in these areas.

Before investing in a business, these are all things that you should consider first. It is a huge step away from the corporate work force and maybe you could do your business part-time until it needs your full attention.

Having a business can be a rewarding experience. It helps to improve your own personal abilities and strengthens your character. There are many courses and classes that you could take to increase your knowledge base in addition to your people skills.

Read on and learn how to start a business with as little money as possible in the continued series on starting a business.