1 in 5 Families Owns a Business. Here Are 4 Good Reasons to Start Your Own

Owning a small business takes work. When you're a business owner, you generally need to be involved in a lot of decisions. And at times, that could mean having very little downtime for yourself.

But owning a business can also be extremely rewarding. You can take pride in bringing your ideas to life and seeing your venture grow.

Recent data from the Federal Reserve found that as of 2022, 20% of U.S. families owned a privately held business. That's the highest level on record. 

You may be toying with the idea of starting a business of your own. If you're not sure about it, here are some big benefits to consider.

1. Autonomy

When you own a business, you don't have to report to a boss. You can call the shots, make decisions, and implement practices that align with your personal values.

Owning a business might make you feel good about the work you're doing. And that could work wonders for your mental health.

2. Boosted earnings

You could work your hardest at a salaried role year after year and never see your wages increase if your employer opts to keep your pay stagnant. When you own a small business and are willing to put in the time and effort, you have an opportunity to boost your business checking account balance and grow your wealth.

3. Future financial security

Some people end up retiring earlier than planned when they're forced out of a job later in life and struggle to find a new one. When you own a business that's doing well financially, you give yourself the option to work for as long as you want. You could even decide to continue working part time in retirement to generate income outside of your Social Security benefits and IRA withdrawals. 

What's more, retirement can be a challenging period because not having a job can be a tough adjustment. If you own your own company, you can decide to work as many hours as you see fit. It's a good way to stay occupied when your fellow retirees may be struggling. 

4. Employment opportunities for your children

You never know what the labor market will look like by the time your children graduate high school or college. If they're ready to enter the working world during a recession, they might struggle. 

The upside of owning a business is that you can carve out employment opportunities for your kids. Granted, there can be disadvantages to working alongside your offspring. But at least your business can serve as their safety net if they need a job.

Starting a business isn't for everyone. And before you go this route, you'll need to make sure you have:

• A solid, thought-out plan
• Access to funding
• Cash in a savings account in case it takes a while to turn a profit

But if you're able to say yes to all of these things, and you're actually interested in starting a business, then it could pay to make that leap. It might end up being a really good decision.