Starting a New Business
Popular opinion suggests that owning a business involves working flexible hours, not being beholden to anyone, having the ability to make independent decisions, and, in effect, being completely on one’s own. Equally as ubiquitous is the belief that because life has not quite turned out the way it was envisioned, entrepreneurship is as good an instigator of change as any to chart a new course to success.
Unfortunately, in both these cases, reality can be quite different from what is believed.
What is needed to be successful in business? According to experienced entrepreneurs, apart from a sound idea and a combination of good reasons, one must desire to set out into the unknown with the heart of an explorer and the mind of a business contractor. In addition, it must be understood that a journey laden with risk, hard work, sacrifice, and occasional setbacks, is what lies ahead.
If this sounds somewhat harsh, consider the fact that in some cases up to 90% of new enterprises go out of business within the first three to five years of operation.
Traditionally, it was usually assumed that many start ups go bust due to a lack of research and preparation, poor business practices or unforeseen economic influences.
Yet a growing number of researchers think that a large number of businesses ‘fail’ because their overworked owners decided that the rewards are simply not worth the effort – so the plug is deliberately pulled
Good Reasons for Thinking About Starting a Business
Because starting-up a business can be difficult, it’s a good idea for a beginner to have several good
reasons as to why he or she would like to become an entrepreneur. The most common of these are:
- A desire to be one’s own boss and handle more responsibility.
- A love of difficult challenges.
- The seeking of career independence as well as more control over life and its direction.
- A major ‘life change’ has occurred (i.e.: divorce, disability, job loss, pregnancy, retirement…).
- The entrepreneur has invented, developed, or innovated a new product or service.
- A current job is going nowhere.
- Money has suddenly become available (i.e.: an inheritance, the lottery, the selling of assets…).
- An opportunity has made itself known (i.e.: a local business is up for sale; a group of people whose needs are not being met has been spotted; or a product people would pay for has been discovered).
Poor Reasons for Starting a Business
Following is a list of poor reasons for starting a business. Experienced professionals consider these to be poor motivators because, on their own, they’re usually not enough to sustain long-term commitment.
Desperation.
- Make no mistake, desperation is a powerful motivational stimulus.
- Yet it can also lead to poor judgment, rash decisions, and a dangerous leap into untested waters.
There is nothing else to do.
- Feeling that no other options are available shows a lack of commitment and passion
- Two essential elements that comprise successful entrepreneurship.
- There is lots of money to be made.
- This is a pipe dream, and it’s often fueled by media stories that highlight app/software developers (or others) who struck it rich ‘overnight’.
However, entrepreneurs must be realistic with their expectations and know the difference between making a one-time-only profit, making a living, and daydreaming.
The vast majority of successful entrepreneurs make a living, not a fortune.
Owning a business will make life easier.
- Unfortunately, having a business usually increases one’s responsibilities.
- That doesn’t translate into making life easier.
The entrepreneur can’t work with others.
- If a wannabe entrepreneur can’t work with other people then he or she is going to have countless problems dealing with customers, bankers, a landlord, suppliers, local or federal agencies, a parent company (if the entrepreneur is involved in a franchise) and the many other people who are often both directly and indirectly involved in private enterprise.
Owning a business will provide more free time.
- Running a business is time consuming and life consuming.
- Every entrepreneur interviewed, stated that he or she worked longer and harder running their own business than they ever did working for someone else.