Advantages and Disadvantages of Starting a Startup

Businessman holding plus and minus symbol signs.

Before you launch your own startup company, it is important to weigh the pros and cons of owning a business to ensure that it is the right choice for you. While entrepreneurship can be an extremely rewarding career path both financially and personally for many, there are inherent risks and potential drawbacks that may make it less suitable for some aspiring entrepreneurs. Ultimately, the decision to start a startup comes down to you and your personal preferences.

If you’re an aspiring entrepreneur, this guide to the advantages and disadvantages of starting a startup will help you establish whether this is the right path for you before you get started.

Advantages of a Startup

Freedom and Flexibility

When you own a business, you are your own boss. This means that you decide your schedule, call the shots for your business, and get to create a business that is unique to your vision. Forget the typical nine-to-five day job — as a business owner, your time isn’t dictated by punching a clock. Instead, you get to dedicate your time to a project you’re passionate about that is centered around your business goals and ambitions.


As the founder, your startup is based on your vision. This means you have the opportunity to get creative in your approach and really see your ideas come to life. Whether you’re in a creative industry or not, entrepreneurship by its nature encourages a creative perspective towards everything from the startup idea to daily problem-solving. Not to mention, you have the final say over branding and marketing materials – giving you the opportunity to put your artistic side to work.

Valuable Relationships

Networking is a huge part of startup ownership. While this may sound a little daunting, networking with other entrepreneurs, founders, and professionals can result in a community of motivated individuals who inspire you. Not only does this benefit you professionally, but surrounding yourself with a network of passionate, motivated people can also benefit your personal life and help you grow as an individual.

Personal Growth

As an entrepreneur, you will almost certainly be required to overcome challenges that will test you. These hurdles, in many ways, are blessings in disguise. The challenges you face as an entrepreneur will contribute to your professional growth and help you evolve personally. From fine-tuning your communication skills to better manage staff and strengthening your problem-solving abilities, many of the lessons you will learn as an entrepreneur will manifest in a positive way through your personal life as well.

Positive Impact

As a startup founder, you have the opportunity to make a positive impact on your community and the world around you regardless of the type of startup you’re founding. Whether you’re a social entrepreneur or simply prioritize incorporating equitable company practices that contribute to the betterment of society, you have the authority to use your position to do good.

Disadvantages of a Startup

Long Hours

Being your own boss means you get to make your own schedule. However, as a business owner, you should anticipate working longer hours than you would at a typical nine-to-five job. A huge part of being an entrepreneur is being willing to dedicate yourself and your time to maintaining and growing your business. This means less time spent on your hobbies and with friends and family, which is a dealbreaker for some entrepreneurs that cannot commit this much time.

Stress and Uncertainty

Launching your own startup poses inherent risks, including a degree of uncertainty even for the most well-planned businesses. Therefore, adaptability and resilience are critical traits for an entrepreneur to be able to combat the stress and uncertainty of founding a startup. As a cornerstone of entrepreneurship, it's a good idea to consider the level of stress and uncertainty you’re confident handling before launching your own startup.


There is a level of confidence that you need to have in order to start and maintain a successful startup. Most entrepreneurs will experience self-doubt to some capacity when they start their own business. Understandably, there is a great deal riding on their vision, leadership, and business savvy. As one of the cons of launching a startup, an entrepreneur's ability to persevere through bouts of self-doubt and potential failures is crucial.

Financial Risk

Whether you’re bootstrapping a startup using your own personal savings or partnering with an investment firm that expects a high return on their investment, founding a startup requires unavoidable financial risk. While financial risk can be mitigated somewhat by business planning and financial forecasting, there is no way to eliminate financial risk completely. Therefore, before you start a startup of your own, you should be absolutely sure that you are comfortable taking on the financial risk.