Advantages and Disadvantages of Opening Your Own Business

Name: Pho Minh Trang

Student Number: 3255193

Class Code: ENGL 1202

Group Number: 8

Advantages and disadvantages of opening your own business

Most people would consider career as one of the most important elements in their life. For that reason, career decision making is a process that requires a significant amount of attention. In particular, self-employment is an option that can be attractive to many people. The reasons why people begin their own business can be varied. But while the romantic notion of being their own boss or running their own shop may be a popular one, this option should carefully be considered. This essay will help you to explore the advantages and the disadvantages of being self employed.

Self-employment possesses several prominent advantages. The first advantage is that it provides a level of independence (Lamkin 2003; Speader 2003). To illustrate, self-employment allows you to fully decide every single thing related to your business such as what, when, where, why, and how you want to work as well as to be unaffected by any layoff decision of any company (‘Advantages and disadvantages of self-employment’ n.d.; Lamkin 2003; O’Brien 2005; Speader 2003). Additionally, according to Lamkin (2003), working for yourself increases your earnings. In particular, he said that The Wall Street Journal stated people who independently offer services normally earn at least 20% to 40% higher than employees who do the same job as them. The reason is that they perhaps do not need to give a portion of their interest to others (‘Advantages and disadvantages of self-employment’ n.d). Opening your own business also afford you many tax benefits that employees do not have (Lamkin 2003). For instance, unlike employees who have federal or state taxes deducted from their paychecks, self-employed individuals mostly pay estimated taxes straightly to the government four times a year. In the United States, this would be the Internal Revenue Service...