The first and foremost advantage of startup is that it is based on unique or creative idea and we all know that in this world where technology and consumer taste are changing so fast, an unique idea can do wonders because there is no limit as far as profit margins are concerned when it comes to startup as there is no benchmark against which these startups can be compared and hence they have monopoly over the pricing of product because uniqueness does not have any substitutes.
Another advantage of the startup is that since these are not listed entities they have to face less regulatory constraint and also there is no fear of shareholders intervention in the company matters which in turn leads to quicker decisions and also gives the management of the company complete control as well as flexibility over the operations of the company.
Entrepreneurs usually start businesses doing something they love. Growing a business from a hobby or part-time job gives entrepreneurs a chance to improve their lives because they are working in an environment important to them. Working in a positive business environment may not really seem like work to an entrepreneur.
As far as employees are concerned they too benefit from startup because in startups they tend to learn more due to the multiplicity of tasks assigned to them and also employees ideas are heard and if employee ideas are good then they are implemented which gives employees a sense of attachment towards the company. In the case of startup employees are also given employee stock option and stake in the company and if the company turns to be successful and when the company gets listed these stake turns out to be a goldmine.
No more restrictions, you can do what you like and have the freedom to work, design, create, build what you think is best – your way!
Why not ?
Is your family situation such that you can undertake this huge venture of starting a small business from scratch? Think carefully about starting a business from scratch. It often means a huge sacrifice with no guarantee of reward. Your current employed situation may actually be a better position than starting a small business.
Married to business! This is a common phrase for small business owners. It basically means, your hours of work and level of commitment is such that you cannot take a holiday, your business is always with you (day, nights & weekends) and basically your neck is on the line. You can’t just throw the keys back and give it all away if it gets too hard!
Homework. Have you done it? You may do it all and then find when you are all set up, that something from left field becomes apparent and significantly alters the outlook of your business.
The biggest disadvantage of the startup is the presence of inherent risk associated with startups because the idea may be unique but consumers may not accept the product or service leading to failure.
You may invest all this time, money and effort into your business and a large competitor targets your customers and offers them a similar product / service at below your cost – until your business has failed. Game over!