4 More Common Reasons People Have For Starting Their Own Business

Let us look at the usual or more common reasons people have for starting their own business!

Owning your own business is a great dream for most people. It remains dreams for many but some people turn this dream into action and take the plunge.

Owning a business is a boon, provided you get into it the right way and knows what to expect and what to do, otherwise it can be a nightmare. Entrepreneurial motivation is a term that is used to describe the quest for new venture creation as well as the willingness to sustain the venture.

One quickly learns that it is easy to start a business. But running a business is an entirely different ball game. Running your own business is probably tougher than anything you have done before. So, you owe it to yourself to honestly explore the reason you decided to start your own business. Take your time about it and figure it out before you commit your time, money and resources to a new venture.

1. Control:

You do not like to have a boss. You want to be your own boss and make your own decisions. That is great-as long as you realize that even in your own business, many of your decisions will be dictated by government regulations, customers, and even your employees. But having your own business gives you far greater opportunity to exercise your own free will.

2. The Idea:

You have this one great idea or a product that will revolutionize the world. No one is currently offering it and you think you should not waste any time in going ahead.

3. Flexibility:

You want a schedule that allows you work when you want to and to spend time with your kids when you want to. Running your own business does give you the flexibility if you want it but now probably you will be spending much more time on the job. Remember, now the buck stops with you.

4. Money:

It is the oldest and the most common reason. Most people start a business because they feel that it is the only logical way to become wealthy. Most of the wealthy people have got their money through business, either by starting one or by inheriting one.

Not everybody who starts a business ends up being wealthy. The success rate may be around 10 per cent and many of the successful ones would achieve success very late in life. So, it is not them but their children who will enjoy the fruits of their labour.

Many would-be entrepreneurs make a grave mistake. They just want to be in business. They are not sure what that means, but they have some vague dreams of success and think that they will recognize it when they see it.

They may hate their job, are bored, or have just been laid off-they are moving away from something negative (such as escaping a job or a bad situation) rather than towards something positive (such as building a business with a clear vision for the future).

This may not be the right path to entrepreneurship. Many people start their businesses with what they think are clear reasons (more money, prestige, a sense of accomplishment, more flexible work time, being their own boss, and so on).

That is a good first step, but you need more. Begin by defining your primary goal, then work from there. From the very beginning, you should plan and think about what you hope to get out of your business, in the short term and in the long term.

What do you hope to achieve by being an entrepreneur—personally, financially, and professionally? How much money do you want to make? How much free time you want for you and your family? How many or how few employees do you want to have?

When you are ready to retire, will you want to pass the business on to your children, shut it down altogether, or sell it? It may seem unnecessary to an­swer these questions before you start, but that is exactly the right time to do it. You can increase your odds of success by thinking clearly, from the very beginning, about your primary goal and what you are willing to give up to achieve it.

There are always trade-offs, and the sooner you have them clearly in mind, the better off you will be. For example, it is going to be hard to give equal weightage to the goals of maximizing income, working part-time and having no debt. Any of these are valid goals, but you will have to choose less of some to have more of others.

Set clear goals. If money is the main motivation factor, understand how much money you want to make and how much money you need to make. (These two are usually not the same.) Aim high, set financial targets beyond what you are making now, but be realistic.

Once you have set goals and have a realistic expectation of what you have to do and what you have to give up in order to achieve those goals, it will be easier to work towards those goals. Also, it will be easier to stay motivated if you have your sights set on desirable and achievable goals.

Let us now run through a list of advantages and disadvantages of running your own business.

Disadvantages:

(i) You are alone.

(ii) All decisions are yours.

(iii) All losses are yours.

(iv) Work may not be satisfying.

(v) You will need to put in long hours.

(vi) Lack of success will affect self-esteem.

(vii) Exiting the business is difficult.

(viii) Pressures will affect social and family life.

Advantages:

(i) You are the boss.

(ii) All profits are yours.

(iii) There will be great variety in roles and tasks.

(iv) Increases self-confidence.

(v) Work can be very satisfying.

(vi) Success will give you immense satisfaction.