People set themselves up in business for many different reasons.
Sometimes they have an idea that will fill a niche in the market or is
a vast improvement on current products or services available.
We're not all creative geniuses, though - but this doesn't mean we
can't succeed in business. Many people set up a company simply to put
themselves in control, perhaps because they feel passionate about the
work that they do and feel that they will be able to make more of a
difference by doing it their own way. This can often make starting up a
business much easier - there's no unfamiliar territory to explore in
terms of the industry and the market. You're also likely to have a
ready-made network of associates and contacts in the field.
Another common reason for starting up a business is to make money from
a hobby. Not all pastimes can be easily turned into profit-making
businesses, but if you manage to come up with the right idea and the
right business model you could end up with a business that gives you a
great deal of pleasure and enjoyment.
Then there are the social reasons for starting up a business - not
everyone does it for the money. Perhaps the company has a charitable
purpose or aims to give something back to the community or the
environment. Although this can be very satisfying, it can be a
challenge to keep afloat as such companies often make no profit and any
surplus that is made is reinvested in the cause.
Finally, one of the other most common reasons for setting up a company
is simply lifestyle choice Some people feel that being their own boss will give them the
flexibility they desire in their personal lives. Other people find
themselves in changed circumstances and want to take advantage of it -
for example, making the most of a windfall, changing career after
losing a job or being offered the opportunity to take over an
A word of caution though: no matter what your reasons are for wanting
to set up your own business, don't do it purely with the goal of making
money and jetting off to live in paradise. It's not because this is an unrealistic fantasy - some
very lucky entrepreneurs do strike it rich in business and hopefully
you'll do the same - but because it's not likely to give you enough
motivation and drive to keep it going, particularly in the challenging
first few years of the business when you may be struggling to make ends
meet and profit is isn't even visible on the distant horizon. You'll
need some other purpose and goal to see you through it and give you the
steer you need to take the business in the right direction. Think
carefully about the fundamental aim, vision and objectives for your
company. Do you want to contribute to a good cause? Make a real
difference to society in some way? Transform the current market by
being the most innovative or providing the best service? Make people's
lives easier? Promote a particular hobby or pastime?