3.01 – Deciding What You Want From Business
Consider whether you relate to any of the most common reasons people start their own businesses:
- Being able to make your own decisions
- Having a business to leave to your children
- Creating employment for the family
- Capitalizing on specialist skills
- Earning money on your terms
- Having flexible working hours
- Taking calculated risks
- Reducing stress and worry
- Finding satisfaction in creating something of your own
- Being your own boss
- Working independently
Two central themes connect these reasons: gaining personal satisfaction and creating wealth, both of which are essential for sustaining a long-term enterprise.
Ensuring a Good Fit for Your Abilities
Even if your personality and goals align with entrepreneurship, the business you start should match your abilities. The following sections explore these reasons in more detail.
Gaining Personal Satisfaction
Few people enjoy being told what to do, when, and how. Working for someone else’s organization often brings such disadvantages. When you work for yourself, you control your job’s nature, ensuring it is not boring, repetitive, or overly time-consuming.
Creating Fun and a Little Weirdness: Zappos
Nick Swinmurn pitched his idea of selling shoes online to Venture Frogs, demonstrating that footwear was a $40 billion market in the USA, with a significant portion sold through mail-order catalogs. With an investment of $2 million, he launched Zappos, which expanded into clothing, sports equipment, and a wedding shop by 2013.
A key part of Zappos’ success is its ten core principles, including creating fun and a little weirdness. This principle ensures that everyone working at Zappos experiences some of the enjoyment that comes from running their own business. For instance, Zappos hosts birthday parties for staff, opens doors for safe trick-or-treating at Halloween, and transforms the office into a haunted house for the day.
Another source of personal satisfaction is the ability to “do things my way.” Employees often feel constrained by company policies and decisions imposed by management. Running your own business allows you to implement practices you believe are right for the market and your employees.
While starting a business can be glamorous, the high failure rate suggests that some people might be more successful and content in other careers. Running your own firm lets you shape the business according to your vision and values.
Making money
Starting your own business is one way to achieve financial independence, though it is not without risks. Most self-employed individuals do not become extremely wealthy, but many become richer than they would working for someone else. You can also earn money at your own pace and help your family financially.
Running a business involves more risk than working for someone else. If the business fails, you may lose more than your job. Sole traders, those working alone without forming a limited company, can be personally liable for business debts, potentially risking personal assets to meet obligations. The reality is that running a business is hard work and may not pay well initially, but it offers the potential for significant rewards.
Saving the planet
Not everyone starts a business solely to make money. Around 20,000 social entrepreneurs in the UK run businesses aiming to achieve sustainable social change and operate with a social or environmental purpose. These businesses contribute nearly £25 billion to the economy and create jobs, provide ethical products, and reinvest profits into society.
Ethical businesses have unique advantages. They can attract and retain intelligent people, as many students consider an employer’s ethical track record important. Customers also prefer ethical firms, with a European Union survey showing that 86% of respondents in the UK, Spain, Germany, Greece, and Italy want companies to produce and market responsibly.
For those interested in starting a social enterprise, the School for Social Entrepreneurs offers support, and Bridges Fund Management provides funding for businesses with a clear social purpose.
Fighting Poverty Through Trade: Traidcraft
Traidcraft aims to fight poverty through trade, sourcing over 450 products from more than 100 producer groups in nearly 30 developing countries. It raises funds and provides aid and advice to support enterprises in developing countries, contributing £1.5 million annually. Traidcraft’s projects include improving market access for women in Vietnam, supporting Indian tea workers, and analyzing the dairy sector in Kenya. As an official WFTO Guaranteed Fair Trade Organization, Traidcraft has received numerous awards and generates a £15 million turnover annually, growing at 18% per year.
Conclusion
Deciding what you want from your business involves considering personal satisfaction, financial goals, and potential social impact. Ensuring a good fit between your abilities and your business idea, understanding the risks and rewards, and aligning your values with your enterprise can help you create a successful and fulfilling business.
