You may be wondering why entrepreneurs go into business on their own, thinking they have a unique need to create their own business. The truth is, there are a few common reasons entrepreneurs decide to do business, and if you’re considering becoming an entrepreneur, you probably fall into one of these categories.
A study conducted by Tailor Brands found that 60% of individuals start a business to increase their income, 61% to do what they love, and 38% to be their own boss.
Knowing the why behind your entrepreneurial motivation can help you build a stable foundation for your business. So, let’s take a closer look at why entrepreneurs start a business. Who knows, these reasons may lead you to follow the same path.
While some business owners are inspired by their side hustle or passion, sometimes life pulls you in a certain direction and you need to make some changes.
There are tons of personal circumstances that push people to become entrepreneurs whether it’s their relationships, children, or living standards.
For example, if your partner travels for work, having an online business can ease your relationship by allowing you to travel with your partner. Time Now Hauling & Junk Removal was created during Covid-19 by Anders Helgeson. He began working from home and had more free time which inspired him to start his own business.
Many entrepreneurs see an opportunity to fill in a gap or improve a product or service currently on the market.
Tanya Zhang, the co-founder of Nimble Made, a men’s slim dress shirt business, was inspired to open her business after seeing an unmet need in the market. Instagram was created after the founders saw no photography-based social media platform.
Being an entrepreneur isn’t just about creating something new, it can also be about finding new and better ways to make it function. To discover the unmet needs in your desired industry, consider doing market research and audience research. It’ll give you a better idea of what’s being offered and what your audience is seeking.
We usually think we need to have a deep, philosophical reason behind why we do the things we do. But our reasoning can come down to basic survival. Many entrepreneurs simply need a job and cannot find one that matches their skillset. So, what do they do? They create their own job instead.
Jack Dorsey, the co-founder of Twitter, was a university dropout who was unemployed before starting his social media platform.
In times of struggle, we can become highly creative and find ways to make a living. Sara Blakey, the founder of Spanx, was selling fax machines door-to-door when she decided to launch her side business. After two years, she quit her day job, and Spanx became a billion-dollar business.
So, you don’t always need a “higher purpose” to become an entrepreneur. Sometimes, having to pay the bills is enough inspiration to get your business started.
We all have hobbies, skills, and talents that we’re crafting in our spare time. However, some entrepreneurs decide to take those hobbies and skills and turn them into a business. And it makes sense—if you love doing something, why not try to make an income from it?
If you have a passion and want to turn it into a business, there are a few things you should think about first. Aside from it being your passion, does your business idea have the potential to be financially successful?
If the answer is yes, you should write a business plan and go for it. If the answer is no, you should rethink your passion and explore other business options.
If there’s one thing entrepreneurs want is more personal time. Understandably, running a business means you need to be there (you can’t just bail!), but you do have more control over your time.
You decide when you’re going to work; you decide how to spend your time. And while that sounds like a dream, you should know that having a new small business will probably mean your working hours will increase, not decrease.
If a client isn’t happy with your service or an employee is sick, it’s your responsibility to find a solution. Of course, there are businesses whose owners are absent, but those aren’t businesses that tend to succeed.
So, it’s about finding the right balance between being the boss and not spending every waking moment focused on your business. Knowing common challenges business owners face can help you prepare and overcome them quickly.
This is a huge one. One of the biggest reasons people become entrepreneurs and start their own businesses is to be their own boss.
There’s an energy to being your own boss, a new level of confidence and power. Rather than listening to your boss tell you what to do, you are the boss. You decide the path your business will take and its goals.
That said, being your own boss means you take on all the responsibilities, successes, and failures. While this isn’t a bad thing, be prepared for what comes with being a boss.
When you work in someone else’s business, you don’t have control over whether the profits go. If you’re community-focused and want to support nonprofits, then becoming a social entrepreneur gives you the power to make a change.
For example, Jordyn Lexton founded Snowday, a food truck business that employs young people who have been incarcerated, giving them essential skills and work experience. This business is a win-win, as both owner and employees benefit in different ways.
But Snowday isn’t the only example of a business that focuses on giving back. One research study found that 12% of participants felt giving back to their community was their primary reason for starting a business.
Being able to give back to your community is a powerful feeling; however, remember, a business is still a business. Do give back, but also make sure your business is still profiting. If it’s not, you won’t be able to sustain your social initiatives.
Many of us want to build generational wealth that can be enjoyed by our families. Some of us have had a challenging upbringing or are inspired by the American dream. Regardless of the reason why, one way to achieve this goal is by becoming an entrepreneur.
However, while this goal is ambitious, very few businesses grow through future generations. You don’t know who your descendants will be, and there’s no guarantee they’ll want to continue the business or have the work ethic to carry it on.
So, while building generational wealth is admirable, focus on improving your life right now. Teach your children to appreciate your business, and hopefully, they’ll teach their children the same. For now, you need to focus on setting up the foundation for success.
There are tons of reasons why entrepreneurs go into business; however, these are the most common ones. Do you see yourself in any of these categories? Understanding why you’re going into business can help you establish your brand and act as the foundation of your business.
All businesses go through their ups and downs, but if you know why you’re doing what you’re doing, it’s all worth it.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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