8 Reasons Why You Should Start Your Own Business

8 Reasons Why You Should Start Your Own Business

Every year thousands and thousands of people start a business for numerous
reasons. I am going to give you 8 common reasons.

Reason Number 1
A good business idea

A good business idea could be an invention, a new product or service, or an
original idea or solution to an everyday problem. It might also be:
• a gap in the market that you can fill
• a business related to the work you do already
• an interest or hobby that you can turn into a business

Whatever your idea is, you need to be sure that it fits with your needs as an
individual, as well as being a viable business proposition.

Reason Number 2
Tried and tested business models

Some self-starters choose a well-trodden path - such as buying an existing
business or rights to a franchise - which can carry fewer risks than going it alone.

Advantages
It is usually easier to get finance.
A market for the product or service will have already been demonstrated.
A business plan and marketing method will be in place.
You should have valuable experience to draw on.
Many of the problems will already have been discovered and solved.
A franchise comes with financial support too.

Disadvantages
Some businesses that are up for sale may be experiencing difficulties. Make sure
you fully understand the reasons for selling, as you may need to invest quite a bit
more on top of the purchase price to give it the best chance of success.
The rights to a franchise or to sell particular products or services may be
expensive.
With a franchise, there may be a particular way to run the business that you have
to stick with.

Reason Number 3
Specific business opportunities

Sometimes the possibility of owning your own business can come as a complete
surprise. Perhaps you are offered the opportunity to buy out your employer, or
take on a family business.

Opportunities like these are like any other business start-ups. You still need lots
of personal commitment and you may need to put your own money on the line.
You also need to carefully assess the business to make sure it is viable.

Advantages
Development, planning and market testing should already be in place.
There may be established customers, a reliable income, a reputation to capitalise
and build on, and a network of useful contacts.
You probably already have expertise in the product or service and a good
understanding of the business you're taking on.

Disadvantages
You may be taking on someone else's problems when you take on the business.
Ask yourself if there are problems with the business, and if so, can you solve
them?

If you are buying out your employer, you may lose support services that you take
for granted now. You won't just be responsible for your core role, but for
everything else as well, such as accounting, staff management and payroll.

Reason Number 4
The business has social aims
You may want to start a business that isn't just for profit but also has a social
purpose. For example, you might want to provide a service for a disadvantaged
group in your local community, or help improve the local environment.
Although any business can have social objectives, you might want to consider
setting up a specific type of business known as a social enterprise. Although a
social enterprise is run as a business, and often operates under the same
financial and profit-driven pressures, it also aims to provide a clear social benefit.
The profits are mostly reinvested, or used to support its social aims, rather than
being paid to the owners of the business.

Advantages
You earn a living doing something you feel is worthwhile.
As your business grows and matures, your community or beneficiary will also
benefit.

Customers may be more willing to buy from a business that supports a good
cause. It may be easier to attract and motivate employees (or even volunteers) to
work in a social enterprise.
You may also qualify for a grant, or be able to raise finance from people or
organisations sharing your social aims.

Disadvantages
Making profits and achieving your social aims can sometimes conflict with each
other. You may have to make difficult choices.
Although you can earn a reasonable income working for a social enterprise, you
will not make your fortune - most of the surplus profits are put back into the
business or go to support its aims.

Reason Number 5
A change in your circumstances

A major life change can often enable you - or push you - to set up your own
business. Maybe a dramatic personal event kick-starts you into action or your job
situation means that now is the time to take the plunge. Such changes might
include:
Unemployment
Redundancy
A change of family circumstances
Coming into money

Advantage
A change in your circumstances might be an opportunity to start again or do
something you've always wanted to do.
Redundancy payments or receiving a lump sum of money can provide an
opportunity to invest in a business.
At its best, being your own boss can give you the flexibility to work around family
commitments.

Disadvantages
Major life-changing events can be very stressful. It may be unwise to make
further big decisions at times of personal upheaval.
Starting your own business is unlikely to provide a speedy return on your
investment and you should be prepared for a long haul.
In the early stages especially, running your own business can mean putting in
long hours and making sacrifices elsewhere in your personal life.

Reason Number 6
To Change your lifestyle

For many people, the biggest attraction of setting up a business is the
independence provided by being your own boss and the chance to have the
lifestyle you want.

Advantages
Starting a business can offer a career with built-in independence and flexibility.
Being your own boss can give you the choice to work more convenient hours -
such as working around your children's school hours and holidays.
You will be able to choose to do some professional development or training.
You will be the one in the driving seat, making the decisions that enable you to
lead your chosen lifestyle.
If your business takes off, the payoff in financial and lifestyle terms can be huge.

Disadvantages
You may find that you have to work longer hours.
You may find it difficult to separate work and home life, especially if you run the
business from home, and this can put extra demands on your family.
Some business owners suffer stress when things are not going so well.
You should be prepared for the loss of perks such as pension schemes, holiday
pay and sick leave.

It's quite common to have financial difficulties, especially when you're starting up.

Reason Number 7
You may want to go into business full time

The kind of business you've chosen - or your individual circumstances - may
mean that you want to take the plunge and jump straight in full time.

Advantages
You can devote all your time and enthusiasm to your business.
You can react to new developments as they arise.
If your business depends on a gap in the market or a new idea, time will be of the
essence.

Disadvantages
You will have to manage without an income while your business gets off the
ground.

If you decide to go into business full time you have a few options to help you over
the early days:
Live off your spouse or partner's income - however, it can be hard to live off
one salary if you've been running the household on two.
Use your savings - if you've been putting money aside for a rainy day, this could
be it. Ask yourself if you have enough to cover your living expenses and fund
your business? For how long? Will you have anything to fall back on if your
business fails?

Get a loan - banks will often help new businesses with a loan. However, they
can be inflexible. You may have to pay back the loan immediately if your
business fails, and there will be expensive penalties if you don't make agreed
repayments.

Use your home as capital - if you have capital in your house, you could use it
as security. However this is risky, your house may drop in value and if you
cannot keep up repayments, you risk losing it.

Borrow money from family or friends - you can save a lot of money if your
friends and family don't charge you interest. But if your business doesn't work
out, it could put a big strain on your relationship with them.

Reason Number 8
You may want to go into business part time
Going into business part time

If your business allows, you could decide to work on it part time, fitting it in with
your current job or other responsibilities. Then, when the business is robust
enough or circumstances change, you can move over to it entirely.

Advantages
You can still earn an income while you're getting your new business off the
ground.

Technology such as answer phones, the Internet and email make it possible to
communicate out of hours when you're not available in person because you're
doing your other job.

It can make it easier for you to juggle your other commitments - such as childcare
- by allowing you to choose when you work.

Disadvantages
It can be difficult to manage the extra hours you need to put in.
Putting in very long hours can be stressful and tiring. There won't be time for
much else.
It could take much longer for your new business to take off.
You'll have to pay tax on both incomes if you continue with your other job.
Many people who set up their own business decide to work on a part-time basis
to enable them to balance their home and working obligations.
Some people decide that the safest option is to continue with their current job
whilst setting up their business. Legally you don't have to tell your employer that
you are setting up a business, although there may be a clause in your contract
preventing you from doing other work.
You might want to ask your employer for more flexible working arrangements.
These could involve reducing or re-arranging your existing working hours.

I can help you with this if you like.

My details are below:

Ken Ajoku
Business & Marketing Advisor

Website: TheKajokuGroup.blogspot.com
Mobile: 07956 515 868