What are the Perks of Owning a Small Business?

Big businesses and the grandeur associated with their brand image are lucrative at times. The pomp and show can attract many. But the reality behind the scenes is known to a few. When the business is huge, it automatically invites more tension and anxiety.

Thus a deep insight and thorough research proves that small business units are more profitable in terms of money and strike a good work life balance for the owner.

In this article, we shall look into the benefits of owning a small business and how an entrepreneur can select a profitable option for the business.

1. Independence

The small business units have fewer stakeholders, making the decision-making and ownership of the title hassle-free. When fewer minds are involved in running the business, the owner gets a sense of independence in conducting the day-to-day affairs. Also, the small business owner is free to take any decision that suits the business's needs. This makes the unit a bit more flexible. In big business houses, getting anything done is tiresome and lengthy which is not the case in small-scale units.

2. Learning Opportunities

When you own a small business unit, you tend to explore many more opportunities and experiment with various innovative ideas and trends in the market. On the other hand, a big business firm cannot possibly take the risk of exploring different temporary trends. Thus, when a firm explores more of the market, it learns about more significant insights. Hence, it becomes a trial and error method for the proprietor.

3. Tax Benefits

A small business unit owner can acquire various tax benefits while planning the business unit's finances. The government has initiated numerous schemes and policies to motivate entrepreneurs to startup small businesses. While registering the business, one can avail of these schemes' benefits and save a considerable tax amount. The Make in India movement and the Startup India scheme launched by the Indian government drive many people into the business and generate good economic growth.

4. Focus

One of the beneficial aspects of owning a small business unit is that one needs to focus on a narrower range or framework. The business owner needs to concentrate on the business and the immediate market trends only. The focal point of small businesses can be the target customer or the service provided.

5. Personalised Service

While rendering services or selling products in a small-scale unit, the owner can provide a personalised service to all its clients. The benefit of running a small-scale unit is that one will have personal contact with all the client base. The clientele being smaller in size makes it easy for the owner to maintain good business relations and increase the company’s credibility.

6. Risk Factor

The biggest advantage of owning a small business unit is that the owner has to face minimal risk in the market. As the unit is small and its operations are limited, the risk factor involved is minimum. When the investment made in the business is high and the products or services provided are diversified, the risk factor increases.

7. Freedom of Creativity

The upsides of owning a small business unit are that the owner and the team-mates enjoy a lot of creative independence. In big business units, the set protocol and procedures are complicated, leaving little room for creativity. While owning a small unit, the owner is closely knit with his team and the customers, which eases the mind to explore creativity.

8. Mental Satisfaction

When one needs to cater to limited issues, lesser complaints, and lowered risks, mental satisfaction levels automatically increase. One feels more satisfied with the work and the output it generates. Thus smaller businesses build the pathway towards a peaceful work culture.

9. Control

An entrepreneur of a small business unit can exercise complete control over the business due to its limited size. Big business units are beyond their owners' control as the size, work culture, protocols, and hierarchy expand the lines of control. Thus, the smaller the unit, the more complete control an entrepreneur has over it.

10. Work-Life Balance

When the business is small and limited, the owner can enjoy a perfect work-life balance. Restricting the work hours and keeping oneself free for relaxation or family time can give an excellent work-life balance. On the contrary, in big business units, a proper work-life balance cannot be easily achieved due to extended work hours and tremendous pressure.

11. Pick your Team

Working in a small unit requires a limited number of professionals or team-mates. Thus the owner has a free hand in picking his team. The team members can also be friends, siblings, or other acquaintances. Thus one need not depend on HR professionals or agencies to select people for running the business.

12. Money Gain

As the investment is to be managed by the owner, the firm's sole owner gets to enjoy the full profit. Since there are no shared investments, the question of profit sharing among partners doesn’t arise.

13. Status

Small businesses offer the status of being in charge of everything. Being your boss is a different feeling altogether. Being the owner gives an immense sense of self satisfaction and boosts your self-esteem as you taste success. However, great power comes with great responsibility, so one has to be ready to take ownership of all the pros and cons that might come their way.

14. Equity

The owner of a small business unit has the authority to build, keep, sell, or pass on the equity to someone else. Entrepreneurs often invest in a business to stabilise it and pass it on to their next generation or sell it off to another entrepreneur. Thus, the sale's income can be re-utilised for some other venture or transform into a retirement plan.

15. Faster Processes

A limited small-scale unit can exercise faster processing of anything, may it be a customised service or a complaint. A small team has all the operations under control. Thus it can twist, turn, or mould a process and complete the task. This simplifies any process and generates faster results, increasing sales and profits in the long run.

16. Returning to the Community

An entrepreneur enjoys this feeling of manufacturing a product or rendering a service that repays something to the community, primarily through charities and donations. A small-scale unit can flourish and earn a good reputation for itself. Also, creating good job opportunities in the market can be a way of paying back to the community.

17. Uniqueness

Personalising services and attending to queries and complaints personally can make your business unique. Through strategic research and planning, one can also establish a monopoly in the market by manufacturing goods with a unique selling proposition or rendering innovative yet necessary services.

A small-scale business unit and its owner invests limited capital, exercises full control, enjoys total profits, ensures client satisfaction, and maintains an excellent work-life balance. Hence, compared to a big business unit, a small-scale business unit has multifarious benefits that can foster growth and lead an entrepreneur to success. As it is rightly said, every big journey starts with a single step!

Also read:

1) How to manage the staff & maintain sales?
2) Hiring and Managing People Wisely: HR Mantras For Small Businesses
3) What are the keys to success when operating a small scale business?
4) What type of permissions are required before starting any business?
5) OkCredit: Simple, Paperless & Secure solution for businesses

FAQs

Q. Is being a small business owner worth it?

Ans. Yes, being a small business is worth every single rupee, as it has numerous advantages attached to it like -

• Healthy employee and employer relations
• Excellent customer service.
• Personal relationships with clients.
• Pioneering in product innovation.

Q. What are the advantages and disadvantages of owning a small business?

Ans. The advantages are -

• Full control over the business.
• Limited investments.
• Personalised services.
• Perfect work-life balance.

The disadvantages are -

• Limited profits.
• Lesser scope of business.
• Limited range of products.
• Narrower market range.

Q. Do you make more money by owning a business?

Ans. Yes, one can make good money by owning a business. Being your boss and exploring creative and innovative ideas can generate more revenue.

Q. What does the average small business owner make a year?

Ans. An average small business owner can make anywhere from Rs. 5 lacs to Rs. 12 lacs a year, depending upon its size and functions.

Q. What are the best small businesses to start?

Ans. Look out for what you are good at and begin your research. If you can dance well, you can start your dance school. Likewise, if you can cook well, you can start your catering service.