Advantages And Disadvantages Of One-Man Business
credit
Advantages Of One-Man Business
The following are the advantages of the one-man business.
- Personal interest of the owner enhances efficiency.
- Decision taking is quick since the owner does not need to consult anybody.
- He enjoys profits from the business alone.
- The owner enjoys independence since he is his own boss.
- There is personal contact with his employees, so employee's motivation is thus enhanced.
- There is privacy in conducting business affairs because a sole proprietor is not required by law to publicize his accounts.
- Cordial relationship with customers provides a feedback system that can help assist in maximum satisfaction of customers.
- One-man business is suitable for the provision of personal services and production of special or custom-made products.
- The one-man business is easy to set up and organize.
- The sole proprietor can have more than one occupation.
Disadvantages of One-Man Business
The following are the disadvantages of one-man business:
- There is limited capital for expansion purposes. This is partly due to the inability of the owner to borrow money from banks.
- The sole proprietor has unlimited liability as his personal assets can be sold in case of business failure.
- The business is not a separate legal entity, therefore, it cannot sue or be sued.
- Sole proprietor business lacks the certainty of continuity because the death of the owner or poor management can result in the death of the business.
- The sole proprietor is not suitable for the heavy industry, especially where large scale production is required.
- The owner of a sole proprietorship has the disadvantages in the area of specialization because he is involved in too many activities.
- His decision, in most cases, may not be effective because two good heads are better than one.
In the past, it was a problem to organize various services; for example, I did not know where to order cleaning services. I mean, they had to do my cleaning after repairs and post-construction, pre-cleaning; periodic general cleaning, which, if requested by the customer, can be internal, external, or integrated; daily cleaning of rooms to maintain a high level of cleanliness; supportive during the working day, local cleaning in rooms of specific use, in institutions with high attendance, etc. The good thing is that I now have a Professional Services database https://www.usbusinessonline.com/professional-services-2 , and I can use any service I need.
I think every business has its own pros and cons.
I think the advantages are much more significant than the disadvantages because I for example was much more comfortable working and doing business, knowing that there were no bosses who told me how to do business. I do it for my own pleasure and I like it, especially when your regular customers come to you and you already know what kind of coffee they prefer and want. But the funny thing here is that all this might not have happened because remembering the times when I was opening my own café, it all kind of worked out badly for me. I tried to do everything myself, from cleaning the place to bookkeeping. It seemed to me that I would have gathered the capital and taken care of business development, but for some reason, it did not work. I turned to the Internet for help and found a very interesting site with tips for those who start their own small business. It is for people like me. Thanks to the blog, I formed a customer base and successfully promoted my cafe. In general, find more info on similar sites if you need help in business.