One of the most common pieces of business advice to those who are thinking of starting a business is to do what they love. But what seems like sensible business advice actually has a downside.
Particularly when you are at the stage of starting a business where you're casting about for business ideas and deciding what kind of business you want to start, choosing to start a business based on what you love can lead you on a path headed entirely in the wrong direction — or even over a cliff. Why can this business advice be such a disaster? Read on for the top four reasons.
Love Is Blind
It's a cliché, but like so many clichés, it's also true. Think about the last time you were in love with a person. Magical, wasn't it? But time passes, as it always does, and suddenly you start noticing things about your beloved that you never noticed before — things that are not only not enchanting, but irritating and maybe even off-putting.
The same emotional journey occurs when you fall in love with a particular business idea or type of business. For example, you might love the idea of starting your own bed and breakfast. You envision yourself sitting in the sunny dining room of your B&B chatting with your fascinating guests. However, if you actually did open a bed and breakfast, you would find that you probably didn't have time to chat with anyone because you were too busy making, serving and cleaning up breakfast. You might even discover that you dislike preparing breakfast for other people.
Love sugarcoats your vision and blinds you to defects. You need to know what operating the type of business you choose is really like, not what you think or hope it's like.
Love Tempts You to Take Shortcuts
Another reason love and starting your own business don't mix is that we tend to assume that other people will love who or what we love. Who hasn't experienced the bewilderment of realizing that a person who’s important to us dislikes a loved one? It's an uncomfortable situation that can lead to hurt feelings and even the loss of a friendship.
When you start your own business based on what you love, the assumption that other people love it too can be downright dangerous. When you forge ahead, starting a business without doing the research that would discover whether or not other people love what you love, you're literally gambling with your livelihood. What if they don’t and you've invested all your savings, for instance, or remortgaged your family home?
Every business idea needs to be diligently researched and examined to see if it actually presents a profitable business opportunity. Write a business plan and see if the idea actually has any merit.
Love Makes You Irrational
When we're in love, we tend to see everything from an emotional point of view, rather than a rational one. That's why we describe it as being "head over heels". As magical a feeling it is, it's certainly not a good state to be in when you're starting a business and trying to choose the business idea or existing business that will be best for you.
By sitting down and doing some research via a business valuation, you may discover valuable information, such as the existing business you have your eye on is considerably overpriced. In that scenario, buying it would make no sense. You need to make a rational, informed decision rather than an emotional one when you're deciding which business is right for you.
Love Makes You Overly Optimistic
Starting your own business is no small commitment. Doing what needs to be done to get your new business started and develop it into a thriving small business takes years in many cases. Very few small businesses are a financial success in their first year, and some never are.
The danger of being in love with a particular idea or type of business is that it makes us overly optimistic about a business's potential. We tend to romanticize our prospects. You can start any kind of business anywhere. But will it succeed? And (a question that is just as important) how long will it take for the business to actually turn a profit?
Running the numbers may not be a desirable item on your list of to-dos, but you have to do it if you're going to get any real idea of a business’s potential success.
You Will Need Passion When You're Starting Your Own Business
At the end of the day, there's nothing wrong with passion. Passionately believing in your product or vision makes it a whole lot easier to put in all the hours you need to put in to start your own business and grow it into an enterprise to be proud of. But you need to rein in your passion when you're trying to decide what to do where and how. When it comes to starting a business, passion is for the building stage, not choosing a business stage.