Why Are You In Business?

If you haven’t started your business yet, here are some things to help you consider the cost.  And not all of the cost is in money.

Knowing your “why” is critical in making good decisions. 

What is your passion?  What are you skilled at?  Is it something you would do for free?  Would that passion dull once it’s a “have to” and you must deal with a difficult client?

 

Is there enough demand for the thing you are passionate to do?  If not, you could have a degree or a doctorate in that field and you still won’t be able to create a thriving business with it.

If you have already started your business venture, here are some things to consider before you continue down that road.

Why Work for Yourself Rather Than an Established Business?  

 

Make lots of money

You earn more doing it yourself.  True.  You also have to pay more in taxes, insurance – all of the overhead expenses you don’t have to think about as an employee.  In addition, the market still needs to be right to sustain your business. People who get rich by owning their own business did it by solving a problem. 

Alternatively, they were very successful in setting themselves apart from the competition in a field that is short of people to fill the demand.

Money is like happiness.  If you chase either one, both prove rather elusive.  Starting a business to get rich isn’t enough.

  

More free time

When you need to deliver, it must be ready – no matter how many unexpected hours it takes to make it happen.  Clients don’t care that you need to take junior to football practice or the little lady to gymnastics.  They care if you are reliable. 

Assuming you are reliable and conscientious, it will still occupy brain space, even when you aren’t working.  If you are a writer, ideas come to you no matter what you are doing or what time it is.  Wanting more time isn’t enough. 

No more dealing with a boss

Welcome to your new bosses:  your clients.  Some may be harder to please than a boss.  You also report directly to government agencies, in one way or another.  More paperwork.

You have more bosses, and you must figure out your own training needs.   You won’t have the benefit of a chain of command.  When a problem comes up and you don’t know what to do, or when you need feedback without a client relationship on the line, you are on your own without a net.  Not wanting to answer to a boss isn’t enough.

I love what I do

When you start a business you have to do everything at first.  You have to market and answer the phone and pay the bills and do all of the accounting functions and clean - whatever it takes for your business to function properly.  You may be surprised at how much time you spend doing things that aren’t what you love to do, just to keep the doors open.  Loving your freelance work isn’t enough. 

 

50% of New Businesses Fail

According to the  U.S. Small Business Administration approximately 50% * of new businesses fail within the first five years.  You can invest a lot of heart, time and money in that period of time.   

Often owners don’t research the market to see if there is demand for the services provided.  It doesn’t matter how great the product is if very few people actually want to pay for it.

Another big mistake is not marketing properly.  No one knows they exist or why they are any better than their competitor.  They run out of resources to continue.

If you are in business as a hobby, then it probably doesn’t matter.  You are just looking for people to buy to cover the costs of doing what you love.  You may not care if you are in business five years from now.

Mindset of an Entrepreneur

If you are in business to make it last, you need to think like an entrepreneur.  Everything about your business must be scalable.  In other words, you should be able to work yourself out of a job.

Don’t let that freak you out.  You get to decide how autonomous your business becomes.  However, if you love the challenge of sewing repairs, but don’t enjoy doing zippers and buttons and adjusting hems, you can grow your business to the point where you can hire someone to do the parts you prefer less. 

 

You can also hire someone to handle money for you, once you know the money matters you must know to oversee effectively.  You can hire someone to answer phones and clean for you so you can focus on the parts you love to do – once you have built up enough demand for your services.

Know Your Why

So why do you want this?  Is it something for the kids to be involved in as a practical teaching tool?  Is it for a little extra cash on the side (hobby)?

Is this an idea your market research indicates is promising?  Is this a service with plenty of demand?

Are you willing to work very hard to get your business established?  Are you ok with doing uncomfortable things in exchange for the privilege of doing what you love for pay? 

Are you willing to find mentors to help you have the mindset you need for various aspects of your business?

If your why is strong enough, you are willing to work hard and do what it takes, and if your product or service is something a lot of people want to pay for, you should do all the homework you can on running a successful business.

Count the Cost 

When you are tired or overwhelmed, when emergencies come up that demand you take time away from work, your why must be compelling.  When your husband and kids want attention and feel a bit neglected, it’s a clue that some things may be out of balance.  Your why will drive you to balance and not give up. 

When you experience setbacks or economic downturns, your why will sustain you. When you need to change what you are doing to reflect changes in the marketplace, your why will drive you to innovate and stay relevant – and in business.

If you aren’t in business yet, I invite you to make sure your why is very, very strong.  If you are already in business, I urge you to know your why.  Dig deeper if it's not strong enough.  Consider the costs and make room for them in new ways so your business can thrive.

Your Turn

What's your why?