Benefits of Independent Ownership
There are many benefits to becoming an independent business owner that hold precedence over operating a franchise.
Franchising.com reports that owning an independent business means that you have full control over all matters, ranging from distribution to products. You also have a clean slate to start with when it comes to building a brand.
Entrepreneurs who are invested in business ownership have the opportunity to use less structured operations and make impromptu decisions as they see fit, according to FranchiseDirect.com. As an added benefit, independent business owners don’t have to play by the rules when it comes to updating their storefronts, whereas franchisors might require franchisees to spend money on routine upgrades.
Franchise and independent ownership each have their pros and cons, meaning it’s important to think over your options prior to making a final decision. Finding the right fit for you can help you reap the benefits of entrepreneurship.
Freedom really does bring happiness, according to a recent survey of small business owners by Manta, the largest online community dedicated to small business. Out of 1,105 entrepreneurs surveyed, almost three out of four (72 percent) stated that owning their own business allowed them more freedom, and 52 percent said that having the ability to control their own destiny was the greatest reward of being an entrepreneur.
Other top perks of business ownership included:
Being their own boss (23 percent)
Increased confidence and self-esteem (7 percent)
Monetary benefits (4 percent)
See an infographic of the survey results here.
More than half of business owners (59 percent) also said that the greatest freedom they gained with entrepreneurship was being able to pursue their passions and interest in their work, followed by working for themselves and not a boss (19 percent), and setting their own work hours (17 percent).
The survey also addressed the biggest barriers to independence. More than one out of four entrepreneurs said that overall economic impacts and finding new customers were their biggest barriers to independence, as well as worrying about money, fixed costs to run a business and managing employees.
Is being a small business owner satisfying? According to a recent Wells Fargo/Gallup poll conducted earlier this year, the answer is yes. The poll revealed that small business owners are more likely to be satisfied with their career choice now than they were at the end of the recession; 56 percent of small business owners said they were extremely or very satisfied this year, compared to 45 percent in 2010.
Trending as the most rewarding facet of being an entrepreneur was independence and the ability to be the decision-maker, which 42 percent of business owners cited. Other highly cited benefits of entrepreneurship included:
Job satisfaction/Pride (17 percent)
Schedule flexibility/Family time (12 percent)
Interaction with customers (11 percent)
Financial rewards/Money (7 percent)
Job creation capability (2 percent)
When asked about their motivation behind opening a small business, 69 percent of business owners listed securing their financial future as very important, followed by being their own boss at 66 percent and setting their own hours at 51 percent.
These are the latest statistics in an uphill trend for small business owners. In a Gallup report from May, 84 percent of small business owners agreed they would still be entrepreneurs if they had to do it all over again.
For most small business owners in the U.S., the benefits of business ownership far outweigh the hardships. In a poll conducted by Wells Fargo/Gallup, 84 percent of small business owners said they would still take on entrepreneurship if they had to do it all over again.
This optimism in small business ownership has not changed much over the past 10 years, despite the recession. Among the most popular reason business owners would take on the challenge again is the ability to be their own boss and make the decisions. Other popular benefits cited were job satisfaction/pride, flexibility of schedules, interacting with customers and creating employment.
Of course, business ownership doesn’t come without its fair share of struggles. In the poll, the entrepreneurs also mentioned generating revenue, cash flow and financing among the biggest hurdles of owning a business.
Business financing is a problem that we strive to simplify here at Guidant. If you’re seeking financing for your business or franchise, check out our full suite of financing options, including our signature 401(k) business financing.
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