Pros:     

• Leverage of Other People’s Money.  If you choose to raise money for your business, you can fund the start-up or growth with investors’ money instead of your own.  If you are investing in someone else’s private company, then you are the OPM.
• Leverage of Other People’s Time.  You can leverage your employees’ time for your business.  If you are working in someone else’s business, then you are the OPT.
• Unlimited payback.  The more successful your company becomes, the higher will be the value of your stock, stock options, bonus and salary.
• Tax advantages.  Most of the tax law in the United States is geared toward reducing the taxes of business owners.
• Freedom to express yourself.  You can express who you are and what you stand for through your business.
• Reputation.  You will be well-known as a startup founder.

Cons:

• Difficult.  Operating a business is the most difficult of all the asset classes to sustain.  The track record of the management team is very important.
• High failure rate.  Nine out of ten businesses fail within the first five years.  You may fail at getting the next round of funding or you may fail at exiting successfully.
• Long hours.  This isn’t a 9-5 job.  You will work nights, weekends and holidays.
• No guarantee.  There is no guarantee of a steady paycheck.
• People.  You must deal with and manage employees, clients, consultants, vendors, etc. along with their personalities and moods.