The Main Reasons Why People Start a Small Business
Written by Bindi Gethen
I was once in the exact same spot you’re in right now.
Teetering on the edge of that jump – feeling the swirl of emotions of fear, excitement, electric current zipping through your veins – wondering “Is this for me? Can I do this?” – putting one step out the door then right back in.
Nobody ever feels completely ready to start a business. There’s no perfect moment. There’s no neon sign flashing “Now’s the time!” You’ll always find reasons to hold back and stay safe. But that’s precisely why you need a reason to always come back to. Forget about the profit margins and market shares.
So why do people start small businesses? Passion, not money, is the main reason. Passion drives persistence. When you’re passionate about your work, you’re more likely to persevere through challenges and setbacks. Starting and running a business often involves overcoming numerous obstacles, and a deep love for the work can provide the necessary motivation to keep going.
The other reasons people start a business are flexibility, job security, community benefits, network, financial independence, and a sense of accomplishment.
Why do people start small businesses?
Starting a small business is no small feat. It requires hard work, dedication, and a passion for the industry or craft in question. While there are many personal reasons why someone may choose to start their own business, the main driving force behind it all is often pure love for what they do. After all, if you’re going to be spending countless hours and pouring your heart into something, it might as well be something you feel truly passionate about.
For many entrepreneurs, starting a business is more than a financial decision or a career change, it’s a personal decision driven by an internal drive to pursue a dream. The idea of being their own boss and having creative control over their work is an allure too strong to resist.
Please keep in mind that each business owner’s motivation can be unique, combining several of the following reasons or including other personal factors.
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Top 7 reasons why you should start your own business
1) Love what you do
If you want to start a small business but aren’t sure what to do, one thing is certain: You must love what you do. Whether it’s creating handcrafted jewellery, opening a bakery, or starting a photography business, there are countless small business ideas that can turn into successful ventures.
When you love what you do, the hard work and long hours become a labour of love, and success will follow.
Not only will you be more dedicated to your work, but your customers will sense the love and authenticity behind your product or service. Take some time to reflect on your interests and talents, and let them guide you towards a small business idea that you’ll truly love.
Pro tip
Choose something that excites and motivates you – an idea that lights a fire under you.
2) Flexibility
Having flexible working hours allows you to create a schedule that fits both their personal and professional responsibilities. With the ability to work from home or choose alternate office hours, flexibility can help avoid the stress of juggling multiple commitments.
As an entrepreneur, you have the power to set your own schedule and prioritise responsibilities in a way that works best for you. This means you can make time for personal pursuits, family obligations, and other important aspects of your life. Unlike a traditional 9-5 job, running a small business allows you more control over your time and empowers you to make decisions that align with your passions and goals.
3) Job security
The uncertain job market has left many individuals worried about the longevity of their careers. Nowadays, job security is a luxury that not everyone can afford.
Starting a small business can be a great financial incentive for those seeking job security.
While traditional employment provides a stable salary and benefits, starting a business means you are in control of your finances. You have control over your income and can generate more revenue by expanding your business. You have the freedom to set your own goals and achieve them on your own timeline.
Pro tip
With the ability to adapt and pivot operations as needed, small business owners can better weather economic ups and downs and maintain their livelihoods. This has been proven and tested by economic recessions.
4) Community benefits
One of the most significant reasons to start a small business is the positive impact it can have on your community. Small businesses create jobs, boost the local economy, and provide a unique shopping experience for the locals. When small businesses thrive, communities thrive. They create a sense of pride and loyalty among residents, which can lead to increased engagement in community events.
Small businesses also often support local causes, organisations, and charities, which further strengthens the bond between the business and the community.
For example, opening a coffee shop might provide a gathering place for locals to meet and socialise, while a boutique clothing store could provide jobs for young people in the area. You could also source your products from local suppliers, which supports the regional economy.
5) Network
If you’re wondering how to start a small business, think about the opportunities that a network can provide.
Building and maintaining relationships is key to the success of any business. And as a small business owner, you have the opportunity to connect with a wide variety of people in your industry. Networking events, conferences, and industry associations are all great ways to get started.
By putting yourself out there and meeting new people, you’ll increase your chances of finding mentors, suppliers, customers, and other resources that can help your business thrive.
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6) Financial independence
Success is far from guaranteed. Some of the biggest challenges new business owners face include securing funding, identifying a target market, and developing a sustainable business model. However, for those who are willing to put in the time and effort, the rewards can be exponential. Starting a small business can be the first step towards a lifetime of financial independence.
7) Sense of accomplishment
When you’re the boss, every success – big or small – is all the more meaningful because you know you worked hard to achieve it. Whether it’s securing your first sale, getting a positive review, landing a big client, or expanding your customer base, every milestone leaves you with a sense of pride and accomplishment that simply can’t be matched. These milestones instigate feelings that can’t be found in a typical 9 to 5 job.
And the best part? The more you accomplish, the more motivated you become to keep pushing forward and reaching even greater heights.
Frequently Asked Questions
Starting a small business doesn’t require you to have a fancy business degree or decades of experience in well-known corporations. What it does need, though, is a passionate heart, unshakeable determination, and the willingness to learn.
Focus on your strengths, learn about your industry, and most importantly, believe in your idea.
The amount of capital required to start a small business can vary widely depending on your industry, location, and business model. For a small, home-based business, you could potentially get started with just a few thousand dollars.
However, for businesses that require a physical location, equipment, and employees, the startup costs could easily run into the tens or even hundreds of thousands of dollars.
Keep in mind that entering the world of entrepreneurship is not just about having enough money to start, but also having enough to sustain the business until it begins to make a profit. This is the reality of starting a small business, but don’t let it deter you. Be ready to make your dream a reality.
Yes, starting a small business while working a full-time job is possible and increasingly common in the modern entrepreneurial landscape. The key is to maintain a delicate balance between your job, which provides financial security, and your passion project, which feeds your entrepreneurial spirit.
It’s going to be tough. There will be times when you feel like you’re juggling too many balls at once, and that’s okay. It’s all part of the journey. So whether you’re in the comfort of your office chair or the chaos of your kitchen table, remember this: You have the power to create, to build, and to change your life.
Every late-night working session, every missed social event is an investment in yourself and your dream. Keep believing. Because one day, all these sacrifices will turn into something beautiful – your own successful business.
Determining the viability of your business idea isn’t something that happens overnight or in a vacuum. It’s a journey of research, exploration, and, quite frankly, gut instinct.
Market research: Is there a demand for what you’re offering?
Competitor analysis: What’s your unique selling proposition that makes you different or better?
Financial feasibility: Does the projected revenue outweigh the costs? Is it financially sustainable in the long run?
Passion and perseverance: Do you believe in your idea? Are you willing to fight for it even when times get tough?
Idea validation is about ensuring you’re not diving headfirst into a shallow pool.
Let’s capitalise on the risks and rewards that come with starting your small business
Starting your own business can provide many rewards: from the satisfaction of seeing it thrive to the experiences that come with watching your brain child come to life. There are, of course, some risks that come along with this journey, but if you take precautions and do your due diligence in researching and planning an effective strategy for launching your business, those risks will be outweighed by the potential rewards.
You’ll need a healthy mix of caution, ambition, and of course, willingness to stand by your decisions. As an entrepreneur, learning how to make financial choices is a must, as every bit of the money you bring in and spend matters. So if you feel overwhelmed at the thought of managing your business’ finances from day one, feel free to give us a call.
We have bookkeeping services tailored to the needs of small business owners in Australia. Let’s set you up for long-term financial success today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
