Everyone has their own reason for starting their new exciting venture. More often than not, these drivers include; financial independence, pursuing a passion, making a lasting change to the world or even creating a legacy to pass down the family.
Simon Sinek wrote a whole book and delivered a famous TED Talk on the importance of ‘Starting with why’ because it is a fundamental aspect of how great leaders inspire people to take action. Considering your ‘Why’ before you jump into your business idea could be the difference between success and failure. This guide explores some of the common reasons why people decide to start their own business and the benefits they have experienced by doing so.
1. Financial Independence
One of the most common reasons why people decide to start a business comes down to the potential financial independence it supposedly brings. Now, it is certainly not guaranteed as many individuals find themselves working ‘in’ the business rather than ‘on' the business which can be a problem for those looking to achieve financial independence because you can quickly become overwhelmed, working 24/7 to keep the business going. This is the last thing you would want if you are aiming for independence/freedom. Instead, you might be looking for a more efficient start-up that can continue to operate when you are not around. In addition to that, you might consider starting a business with an exit strategy in mind.
There is no right or wrong answer but you do need to find what aligns with your goals. Money can be a motivator but many have stated that it is not a strong enough incentive when the business start-up journey becomes tough or demoralising.
2. Freedom
Second to financial independence is often freedom. Many of those striving to create their own business venture is often driven by the desire to have freedom around their schedule which is understandable as some people are not able to achieve their preferred lifestyle when working in a company with a structured way of working.
Starting a business does not always mean that you get to work 8 hours a week. In fact, it is very unlikely that you will be working low hours at the beginning of your venture as you have a lot of work to put in to get the business off the ground. Despite this, being your own boss will allow you to control the rules so that you can work a schedule that fits in with your lifestyle.
As the business progresses you could find yourself in a position to be able to step back from the business and spend more time pursuing other interests that you have in life.
3. Following your passion
Building on the last point, starting your own business does present an interesting proposition to be able to pursue the thing you love.
The thing you love doing is often the thing you are good at.
Developing a hobby or passion into a business idea will help you to enjoy work-life more and it could also improve the likelihood of your business being a success as you are more likely to be good at what you do, as well as, sticking by the idea when things get tough.
4. Making a difference
Establishing your own business is one of the best ways to make a difference. The business provides you with independence and empowerment to be able to make decisions that are going to impact the areas that you have concern for.
It also provides you with a solid platform to bring people together and have a more powerful impact. Without a platform, it will be difficult for you to reach an audience and have a lasting influence on the individuals you need to get behind you.
5. Potential security
Going alone has the potential to bring more security to your life, however, this is not a guarantee as we all know that business ideas can fail quickly, leaving you in a worse position than you were before. This shouldn’t put you off from starting a business because there are ways to remain secure whilst getting your business off the ground. Staying in your current role and starting the business as a ‘side hustle’ is just one example.
When you do find yourself in a position of business success, there is more likelihood of feeling secure because you are in control. When you are employed, you have less control over promotions or sackings, leaving you unsure about your future. In the position of self-employment, you are in control. You can decide when you deserve a raise and the opportunities you should be pursuing to help you advance. Alternatively, you can put off the options that could leave you in a position of vulnerability. However, when you set up your own business, confidence in decision making is something you will need to possess to ensure success.
6. Opportunity to learn
Many people are driven by a desire to learn and starting a business is one of the best ways to expose yourself to a range of key areas. These experiences can help develop skills in; networking; marketing; sales; product development and becoming an expert in the industry that you choose to operate.
The failures that you experience along the way provide you with insight to be able to know what works well and what doesn’t work so well, equipping you to deal with future scenarios that are similar. Without these experiences you won’t be able to grow, preventing you from achieving your life goals.
7. Business benefits
As we know, starting a business does not guarantee success, however, there are guaranteed benefits. These benefits include tax breaks and funding opportunities that are only available to certain businesses.
Firstly, operating your own business provides tax breaks that you can benefit from but you should always seek the support of an accountant to understand where you are eligible without breaking any rules! Secondly, the Government often provides funding to businesses that look to solve problems such as climate change as an example. If you are looking to start a business that makes lasting change and fits in with the Governments aims, there could be funding available for you to apply for.
Why you should start your business
The reasons ‘Why’ you should start are endless as people benefit from self-employment in different ways.
The main reasons to explore self-employment include; flexibility, financial security and happiness. Although it might seem a daunting task now, you will only know if it is right for you through trying. The sooner you get started, the sooner you get your answer.