ership or corporation. 5) In addition to all the other advantages listed, another advantage of owning your own business is that you, the owner determines how much you want your firm or company to grow. You decide if you want to stay a small business or expand, whether it be locally or nationally. This can be advantageous because the owner can determine whether it’s better to stay small or grow. If you’re business is successful, you may want to expand to reach more and more clients, helping you make more money and to establish your firm as a successful one. Or you might think that it might be better to stay small and local, because you might not want to take a chance because you might not want to mess with a good thing. Whatever the situation, the owner decides what suites the company. But with advantages, there are also disadvantages of owning your own business. Five disadvantages of a sole proprietorship are: 1) The owner is personally liable for all debts and incurs all losses. The sole proprietor is responsible for all debts that the company owes. The owner takes all losses. There are no other owners to help the owner cover all losses. So if you lose too much money, then you can basically say good bye to your business. With too much loss, our business will be terminated and you lose everything that you invested into the business. 2) Another disadvantage is that the owner’s dream is greater than his/her ability to produce. You may have a vision or dream of how you want to business to be like, but if you’re abilities are limited, then your business will be a failure. If your abilities can’t back up your dream, the owner shouldn’t waste his time trying to establish a business that he/she can’t maintain. 3) An additional disadvantage is that it is difficult to raise capital because of limited funds. When owning your own business, you can only set aside a certain amount of m...
