Running a One-Person Business
In this post, you’ll find a large collection of hand-picked articles. Offering insights on the pros and cons of running a business on your own vs. hiring staff to help you manage and run your business. But first, let’s go over a few of the issues to consider.
The Pros and Cons of Running a One-Person Business
When it comes to running a business, there are many strategies involved. One of those strategies is whether to run the business on your own or hire employees.
There are some businesses where you’re able to run it all on your own. Then there are those businesses that you won’t have the option, for example, large retail establishments, manufacturing plants, etc.
Below you’ll find a few of the pros and cons related to running a business on your own.
Reduced Operating Expenses
The cost of hiring employees is one of the major factors involved when deciding on hiring.
Hiring an employee at an entry-level position can cost you around $500 per week multiply that by 52 weeks, and you’re well over $26,000. That doesn’t include benefits, payroll tax, insurance, etc.
No Payroll to Deal With:
When you hire an employee, you must deal with payroll taxes as well as other costs involved. When you’re running the business as a sole proprietorship, you don’t have to deal with payroll. When you pay yourself, you’re subtracting from the income of the business.
No Employee Management:
When you have employees, you must manage them. Managing employees takes time and effort. When running the business on your own, the time and effort you put into managing employees can be used for other tasks.
Easier to Run Things Your Way:
Whenever you’re running a business with a large staff and changes come into the workplace, it’s usually challenging to get your team to adapt to the new changes.
Running a business as a one-person operation allows you to make changes without the time and effort to get your team to adapt.
When Business Is Slow, Less to Worry About:
Business fluctuates; there are slow times and busy times. As a business owner, one of the issues that come to mind when business is slow is the cost of keeping people employed. When revenue is low, you may need to consider layoffs. As a one-person operation during slow times, you don’t have to worry about the extra cost of paying your workforce.
No Time Off:
When you’re the only one running a business, you may find it difficult to take time off. There’s no one there to take over when you need to be away from the business.
Working Longer Hours:
Because you’re the only one running your business, to finish all the necessary tasks. You will probably be working longer hours.
When you’re the only one running your operation, productivity is limited. There’s only so much you can do in a day, especially if you provide a service or produce a product. One person can only produce so much per day. Compare that to having 10 people working, and you would have 10 times the productivity.
When you work with a group of people, you can brainstorm, ask others for their opinion, gather ideas, etc. If you’re the only one working, your creativity is limited to what you have to offer.
A Collection of Resources Related to Running a One-Person Business
For more on the pros and cons of running a business on your own vs. hiring staff, see the resource section below, offering a collection of hand-picked articles from various authors.
Running a One-Person Business
When to Hire Employees for Small Business
How to Hire Employees for Startup
How Much Does Each Employee Cost
One Person Business Ideas
The Latest about Running a One-Person Business
In this section, you’ll be able to stay up to date on the latest related to One-Person Businesses including videos, news, the latest Google search results, what people are tweeting, and more.