Whilst this is an ideal combination for starting a business many businesses are not started this way. There may be many right reasons from a personal perspective for a business start up but heads need to rule hearts in matters of business, even if both the head and heart are ultimately involved in the final decision.
Start a Small Business for the Right Reasons
First and foremost you must have identified a clear business opportunity, with a compelling business case and plan. You must believe that the demand for your new product or service is already there or can be quickly generated and you will make money.
Second, you must feel enough conviction and passion for the business idea that you will willingly start the enterprise and then overcome the inevitable problems that will come.
Third, you must have the support of family and friends because the path to business success is unlikely to be smooth and they will provide support to help you through difficult times.
New Business May be Wrong for You
Michael E Gerber in The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It identified that many people start a business because they have a level of expertise with the subject matter [technician] but that does not mean that they have either the managerial [manager] or entrepreneurial [entrepreneur] skills to be a successful business owner.
Alternatively, the small business owner may start as a manager or entrepreneur but lacks the other skills. These potential skill gaps become magnified if the business owner experiences a level of initial success and so employs additional people.
Start up Business for Wrong Reasons
Starting a new business for the wrong reasons include:
- Being seduced by the prospect of financial success or what appears to be “easy money”; starting a new business or franchise because it seems like a good idea but where you have no experience or expertise
- Have a product or service but without any real appreciation of the potential customer demand. This approach may be speculation or a pet idea and the expectation that customers will come
- Idea of Work From Home and spending more time with family and friends because you are no longer trapped in a 9-5 job. Many small business owners find that they work longer hours, have less separation between work and family time and consequently have less time with their family
- Have no real interest or desire to be in that business. If this is the case then not only will motivation levels be very low but the desire to succeed may simply not exist
Start with the Right Reasons and Avoid the Wrong Reasons
It is important for entrepreneurs to start the new business or become a small business owner for the right reasons as the path to success may be long and difficult. Consequently the entrepreneur needs to have a firm conviction and driving belief that they will succeed with their business idea. Without that strong motivating force the chance of success diminishes rapidly as confirmed by government statistics on business start ups and failure rates. In addition, it makes sense to take advantage of any help such as Strategies to Improve a Small Business and identifying common problems.
Roger Lever - Early career was in Treasury Banking and this led to my interest in financial investment, especially the stockmarket. Enjoy reading widely ...
