20 Right and Wrong Reasons to Start Your Own Business
Many reasons motivate entrepreneurs to pursue their dreams of launching profitable companies. Some reasons are better than others, and some reasons are downright bad.
Before making a decision that is difficult to undo, it's important to ask yourself difficult questions and go through your underlying motivations for starting a business before making the leap. By doing so, you can protect yourself from unnecessary risk, and you may just confirm why you definitely should become an entrepreneur.
The 10 Best Reasons to Start Your Own Business
Experienced entrepreneurs know the best business ideas arise out of a genuine need for something meaningful in the marketplace, and they will train themselves to become hyperaware of potentially profitable business ideas within their areas of interest. These reasons to start a business are most likely to lead to success.
1. You See an Opportunity
A new business opportunity, perhaps in the form of an unserved need in the marketplace or a new technical innovation, can be an opportunity worth taking advantage of. Be sure the opportunity is real and you are not exaggerating its value.
2. You Have an Idea That Will Deliver Value to Customers
If you have an idea that a sizable number of customers are willing to pay for, you have a good reason to start your own business.
3. You Have a Business Idea You’ve Already Validated
Perhaps you're sitting on a tested prototype, the results of a consumer survey, or the anecdotal evidence from years working in a corporation, suggesting that there is a true need for the product or service you have in mind.
4. You Believe Your Solution Can Achieve Something Unique
If you see an unmet need or an unsolved problem in the market, this is could be your calling. Perhaps no existing competitors address the problem as well as you can, or they only do so partially, leaving room for your superior service or product.
5. You Enjoy Learning by Doing and Taking On New Responsibilities
As you start your own business, you will have to take on a hands-on role in marketing, accounting, sales, operations, human resources, and more. If you like to dive right in, think on your feet, and learn as you go, you have the capacity to do well.
6. You Are Optimistic About Your Business Idea
There will be times when others doubt you and the viability of your idea. That will continue until the signs of your success are visibly apparent. Near the beginning, your confidence is essential to keep you working toward your goal.
7. You Won’t Accept Failure
Your progress will initially be slow and uneven. New milestones will be followed by setbacks, and your attitude towards handling these momentary roadblocks will determine your long-term success. If you are the type to get back in the saddle every time you fall down, you are well-suited to be an entrepreneur.
8. You’re Excited About Working Hard on Your Passion
Looking at successful entrepreneurs, you rarely find a case where hard work and passion don't go hand in hand. History is full of people who tirelessly pursued their passion and created successful ventures.
9. You Have Experience in the Industry
You will benefit from having an above average understanding of the industry, markets, customers, and competitive dynamics. These are all things that are difficult to match by industry outsiders, as you'll be able to leverage existing relationships to speed up your progress.
10, You Have the Resources Necessary
Having an idea is great, but to start your own business, you need the relevant resources to turn that idea into reality. These resources can come in the form of financial capital, information, technical know-how, or valuable networks that'll help you accelerate your success.
The 10 Worst Reasons to Start Your Own Business
It's important to be honest with yourself. Successful entrepreneurs are in it for the right reasons—they love what they do, and they want to be successful at it for its own sake. If any of these ulterior motives are driving your desire to start your own business, it's probably a good idea to pause and rethink your plans.
1. You Hate Your Job
You can hate your current job all you want, but it will neither add to nor take away from the value of the business you want to start. Leaving a job you dislike can be exhilarating, but make sure you are replacing your job with a viable alternative that allows you to support yourself financially.
2. You Hate Your Boss
Again, the decision to start your own business should be based on factors related to the business itself, the opportunity to create and deliver value, and the possibility of you making it happen. Also, escaping an intolerable boss doesn't mean you won't have to deal with customers and suppliers who can be just as demanding.
3. You’re in It for the Money
When you start your own business, you will face challenges that require you to have resilience, passion, and stubbornness—not just the hope of making easy money. And if you truly are doing what you love, the money shouldn't matter so much.
4, You Want to Work Less
Running your own business is time-consuming, especially in the beginning. You are always on call and can’t clock out from work at the end of the day like you can when you are employed by someone else. There is always work to do, and you are the only one to make sure it gets done.
5. You Want More Flexibility
If you are expecting to only work when you want, you will be disappointed. You may now be your own boss, but your customers don’t care about your wishes to sleep in or go on a two-week cruise. Your customers will want what they want when they want it.
6. You Think It Will Be Easier Than a Corporate Job
The hardships you experience at work are a result of your job being just that: work. Entrepreneurship may entail a different set of challenges, but it is in no way easier than having a corporate job.
7. You Only Want to Answer to Yourself
As an entrepreneur, you answer to no one and everyone. You answer to your customers, your suppliers, and employees. You also have yourself to answer to. This adds a whole new dimension of responsibility. Since you are your own boss, you can cut yourself as much slack as you want, but the effects of this will show in the success of your business, or lack thereof.
8. You Want to Have Fun
Although starting and running your own business can be a lot of fun, you are bound to come across tasks that are tedious, and times when the workload is overwhelming. To be a successful entrepreneur you will have to face both the good and bad with a relentless fervor.
9. You Want to Be Famous
Building awareness about your company within your target audience is necessary, but if you are looking at publicity or marketing as your end goal and not a means to an end, you are making a serious mistake. Being an entrepreneur is about building a successful business through creating and delivering value, not becoming a celebrity.
10. A Friend or Family Member Wants to Start a Business With You
Just because someone you know or admire wants to work with you, doesn't make a business opportunity instantly attractive. Furthermore, working with friends or family can be problematic.