Overview

Owning and running your own business can be more satisfying and fulfilling than working for someone else. Owning your own business takes courage, energy, tenacity, and a high tolerance for stress.

Business ownership by an individual, individuals, or entity refers to the control over that business entity in an attempt to profit from the successful operations of the company. Those owning the business have both the decision making authority to dictate the operations and functions of a business and the first right to profit from those decisions.

The owners of the business also own the financial risks of the business. Fail to generate revenue from customers and control expenses the owners are at risk of losing the equity they have in the business and are on the hook for honoring the liabilities of the business through any personal guarantees they enter into to acquire an asset on credit.

Small business ownership is one of the toughest jobs performed and most rewarding. You make it rewarding by being disciplined in the management of your assets such that they earn you more than they cost. Do this, and you will have cash reserves in the bank. Fail to do this, and you will owe others more than your business is worth.