If you’ve ever dreamed of being your own boss, entrepreneurship may be the right career path for you. However, not everyone starts a business to become the next Mark Zuckerberg or Jeff Bezos. A lot of entrepreneurs want the freedom to make their own schedules and do work that is personally fulfilling. One way you can achieve this is by starting your own micro business. Micro businesses are characterized as having fewer than 10 employees, typically require less than $50,000 to start up, and make less than $250,000 in sales every year. If this type of business seems suitable for your lifestyle and resources, read on to weigh the pros and cons before you jump in.
Pros of Starting a Micro Business:
- Lower Costs – As mentioned before, micro businesses require less than $50,000 to start up and can even get started with just a few thousand dollars. They also have less expenses when it comes to operating costs or paying employee wages.
- Ability to Specialize – When you’re a small business, you can offer specialized services that aren’t offered by big corporations. For example, you can tailor your services to your clients or custom-make products to fit customer preferences. You also get to really hone your craft and let the quality of your work set you apart from other competitors.
- Flexibility – Like small business owners, being an owner of a micro business gives you flexibility with your schedule and operations. As the boss, you call the shots and can create a schedule that works with your lifestyle. Work-life balance may be hard as an entrepreneur, but you have the power to make decisions that can always make it better.
Cons of Starting a Micro Business:
- Higher Risk – The same as with starting any business, big or small, starting a micro business is associated with a certain level of risk. Your ability to turn a profit will be what makes or breaks the success of your business, so enter into this path with a good business idea and plan.
- Scarce Resources – Funding can often be hard to come by as a micro business. Many are denied funding because of the risk associated with not making a profit quickly enough. You’ll have to rely on your own personal capital or raised funds to run and market your business, and this may limit what you can do.
- Responsibility for Employees – As the owner and operator of your business, you’re responsible for everything. This includes being accountable for your employees and ensuring they perform their responsibilities correctly. If accidents happen or mistakes are made, you and your business may be liable for them. Protect yourself and your livelihood with small business insurance so you can be covered no matter what.
Now that you’ve thought about the pros and cons, check out the following infographic from The Zebra for popular micro business ideas and tips on how to start.