Reasons why someone might want to start a new business
This article aims to explain some of the main reasons why someone might want to start a new business. Starting a new business is undoubtedly a challenge as it is always associated with risks. So, why should someone do that? Well, there are a number of answers to this question which this article explores in detail.
What are the main reasons for starting a new business?
- Starting a business is a life-long dream of many people. It gives them the status of entrepreneurs. It also gives them the flexibility they are after and they can be their own boss. They can fit work around their other priorities. In fact, flexibility is a wonderful promise of entrepreneurship.
- People may be dissatisfied with their current jobs. Starting a business gives them the avenue to come out of the jobs they are dissatisfied with. It is true that they must work extremely hard to make the business work; however, at least it will be on their own terms (Dean, 2016). Similarly, many entrepreneurs may operate from home with the help of the Internet and reduce the costs significantly.
- Some people may be happy with their job; however, they would like to earn some extra money. Starting a new business provides them with an opportunity to generate some extra cash. In addition, it provides them with an opportunity to earn an unlimited income based on their own efforts, and success of the business.
- People have interests and they love to pursue them. Some people may have an interest to make a difference in the world by offering a service to the community such as a charity shop or hospital (BBC, 2020). Similarly, having businesses allows the owners to be more creative as they do not need to follow the rules of others.
- What is the most common thing among the top ten richest people in the world? They are all entrepreneurs! They started their businesses long ago and became rich. As of December 2019, the top ten richest people in the world are Jeff Bezos, Bernard Arnault (and family), Bill Gates, Warren Buffett, Amancio Ortega, Mark Zuckerberg, Larry Ellison, Carlos Slim Helu (and family), Larry Page, and Mukesh Ambani (Clifford, 2019).
- Someone may have identified a gap in the market. However, how can they make use of it? They can set up a new business to cater to the gap. It is certainly true that it takes a lot of time and planning to get an idea off the ground and eventually turn it into a profitable business; however, if done well, it can be extremely rewarding.
- Business world is tough, and many people may not be confident about the feasibility of their business ideas. They may also feel that if they start a new business, it will shatter into a thousand pieces, incur them multiple problems and take them nowhere. However, if they do not at least try to start something, they would never know whether the idea was a good or a bad one.
- Starting a business helps entrepreneurs get tax breaks from relevant authorities in many countries. However, it should not be the primary reason as it may tarnish their brand reputation in the future.
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Last update: 19 January 2020
BBC (2020) Why set up a business, available at: https://www.bbc.co.uk/bitesize/guides/zc3gkqt/revision/1 (accessed 19 January 2020)
Clifford, C. (2019) How much richer the top 10 billionaires are now compared to the beginning of the decade, available at: https://www.cnbc.com/2019/12/24/net-worths-of-richest-people-in-the-world-in-2010-and-now.html (accessed 18 January 2020)
Dean, G. (2016) 7 Reasons to go into business for yourself, available at: https://www.forbes.com/sites/gingerdean/2016/05/29/7-reasons-to-go-into-business-for-yourself/#290b288022f9 (accessed 19 January 2020)
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Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.