Business ownership is an exciting opportunity to run your own shop, develop and see your ideas come to light, and make important decisions independently.

Many entrepreneurs relish the idea of being a one-person business with the control, power, and flexibility business ownership provides.

In this article, we’ll explore some of the benefits of running your own business, the steps it takes to launch it, and examples of businesses that started small.

Here’s a closer look at some of the core benefits of running your own.

Flexibility

A one-person business gives you great flexibility to set your own hours and work when it’s best for you. You can have the lifestyle flexibility to balance work and home lives, spend more time with your family, and pursue it at the pace you want.

Independence

When you are running your own business, you have the independence to structure the company the way you want. With the control to shape your work and how it is done, you’re enabled to instill beliefs, perspectives, and values in the company that you operate.

It’s your business and you can run it how you want, when you want, and the way you want to. That means deciding on the products and services you want to sell, the processes and operations you want to use, and what kinds of people you want as colleagues.

Financial Rewards

As the owner of the business, you can gain financial rewards from your business. While there are risks to running your own, there are also strategies to minimize these risks and the financial gains can be significant. As a one-person business, you don’t need to share any of the profits with partners or pay employees.

Power and Culture

Too many people think of “power” as a negative idea. However, in business, power is important. As the owner and sole operator, you make the rules. You can also develop the culture – values, principles, and ideals – that permeate the company. Owning one allows you to determine how you interact with partners and customers and how it engages with the community.

Innovation

Many entrepreneurs decide to launch their own business because they are driven by an idea. They have a vision for transforming the way that a product or service works or have identified the need for a brand-new offering. As the sole practitioner, you can drive innovation and bring those concepts to life and the market. A bold vision can become a reality faster when you are not dealing with the bureaucracy of a larger organization.

Impact

A new business is a new opportunity to help people and communities. When you operate your own, you can directly help people with the products, services, and outreach you do within the communities and markets in which you operate. Small businesses can have an outsized impact on customers, people, and communities that matter most to you.

Why More People Are Starting Their Own Business

There has been a recent rise in the number of people starting their own businesses. In 2021, a record 5.4 million business formation applications were filed, according to the U.S. Census.

In 2022, those numbers dipped to 5.0 million, fueled by inflation and economic uncertainties. However, in early 2023, the monthly totals were climbing, an indication that people are once again actively launching their own businesses.

The COVID-19 pandemic is one main reason for the jump. People have had several years to assess their careers, what they want to do professionally, and how they want to work.

In addition, as people seek more flexibility and control, they are quitting corporate jobs in record numbers and seeking a new approach to work.

How to Successfully Launch Your Own

When you have a twinkle in your eye about starting a new one, you can start to plot out how it will be launched. Here are some key steps to take as an entrepreneur to prepare for and launch your one-person business.

1. Start it on the side

You can dip your toes into entrepreneurship without fully diving in. Starting a new business as a side venture is one way to see whether you want to pursue the full-time.

That’s a safer option than quitting your full-time job and solely focusing on the new venture. Instead, you can commit several hours a week to your side business to determine if it’s right for you. You can use this time to build the business; network with other entrepreneurs, partners, and customers; and test-drive the products or services you seek to sell.

You’ll be able to maintain your full-time income and benefits while you gain traction. You can also use some of that income to fund the new venture.

Jeff Bezos was working as a computer engineer when he decided to create an online bookstore. What began as an online bookseller is now Amazon, one of the world’s leading online retailers.

By starting small, you can position it for success and have less risk financially when you decide to launch. And if you decide the new business is not for you, you can return to your full-time job or postpone the launching of your venture.

2. Determine a business structure

One of the most important decisions you will make as a business owner is the legal structure you will use. The structure you choose has significant implications for how you operate it, the tax implications of it, and your liability protection.

For single operators, there are two primary business structures to choose from. A sole proprietorship is the most simple and common structure.

In this approach, there is no real distinction legally between the business and its owner. The profits and losses are passed through to the owner’s individual tax return. However, there is no liability protection of the owner’s assets in the case of bankruptcy or judgment against the company.

A limited liability company (LLC) is another popular choice. In this business structure, profits and losses are also passed through to the owner’s tax return. However, the LLC establishes the company as a separate legal entity and protects the owner’s personal assets from a liability standpoint.

The LLC also provides great flexibility in terms of how you organize the company’s work and how you choose to be taxed.

Determining where you operate is an important consideration. For example, if you launch a small business in California, you will need to:

• Name your California LLC
• Find a registered agent, who will handle paperwork on your behalf
• File a “doing business as” (DBA)
• File Articles of Organization
• Create an operating agreement

Each state has different guidelines and rules regarding business operations. In Texas, for example, you do not need to be a resident to launch an LLC, there’s no personal income tax, and business taxes are lower.

Before launching, it’s important to understand the different rules and regulations for running a business.

3. Develop a business plan

When you want to start your own, you should take the time to create a business plan that lays out the key elements. Business plans force you to think through the details. The common structure includes:

• Executive Summary: a high-level overview of the business
• Company Description: a list of the products and services, target market and customers, and the company history
• Products and Services: details on the company offerings, pricing, and competition.
• Market Analysis: a detailed section on the industry, your market, and your competitors
• Marketing Strategy: an outlined description of how and where you will sell
• Financials: where you share financial documents, including balance sheets and projections

There are many examples of one-person businesses evolving into massive companies. Under Armour, for example, began when college athlete Kevin Plank started creating undershirts that were more comfortable and realized he could launch a business with the idea.

There’s also Groupon, which began when founder Andrew Mason was looking to cancel his cellphone contract and realized he could negotiate group deals that would benefit customers and retailers alike.

Building your own business is an exciting venture. Considering the benefits and taking the right steps to plan can result in a new company that serves customers and changes your life for the better. 

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