Reasons to start a business
Updated 2024-03-28. Originally published 2010-05-18 on VocationVillage.com
Many people tell me they know in their hearts they would be happiest as a business owner, but fear stops them. There are good reasons to start a business … here are some of them:
If you are afraid that you don’t have enough money, that the economy is too challenging, that you don’t know enough, or that your business will fail, here are some facts to consider:
Reasonable startup costs
As reported by Inc. in 2020, a study by Wells Fargo conducted by the Gallup Organization found that 73 percent of new businesses were launched with no outside funding of any kind and that the average business startup used less than $10,000 of launch capital.
Launching during a tough economy
A Kauffman Foundation study, "The Economic Future Just Happened," reported that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies. The data also suggest a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.
Starting sooner rather than later
You don’t need a perfect business plan with all aspects of your business perfectly fine-tuned before you start your business. The reason so many entrepreneur coaches advise to "fail fast, fail often, and fail cheaply" is that you can’t possibly know in advance how the market will react to your business until you invite customers to provide feedback. Eric Ries’ concept of “Minimum Viable Product” is useful, where you strive to collect the maximum amount of validated learning about customers with the least effort.
Better job security
In some situations, especially if you are age 50+, it can be a lot easier to find customers or clients than to find a salaried job. Also, if your revenue comes from a variety of sources as is the case with many business owners, you may enjoy more job security than if all your eggs were in one employer’s basket.
High satisfaction
Women, especially seem to value the autonomy of being their own boss. A Groupon study of 600 female business owners found 94% of them said they are happy with their choice to work for themselves and ready to overcome any challenges thrown their way.
Support and training
You don’t have to learn everything on your own. You can get support and training from a Small Business Development Center. From their website:
“SBDCs provide problem-solving assistance to help small businesses access capital, develop and exchange new technologies, and improve business planning, strategy, operations, financial management, personnel administration, marketing, export assistance, sales and other areas required for small business growth and expansion, management improvement, increased productivity and innovation.
No return-to-work
When you own your own business, no boss can order you to return to an office you prefer to avoid.
Do you have a question about starting a business? Send it to me and I may choose it for a future article.
