Monday, September 17, 2012

Why start a small business and entrepreneurial ventures?





Owning a small business and entrepreneurial venture is a great dream for most people. It remains a dream for  most people, but some people turn this dream into action and take the plunge. Owning a business is a boon, provided one get into it the right way and know what to expect and what to do, otherwise it can be a nightmare.
Entrepreneurial motivation is a term that is used to describe the quest for new venture creation as well as the willingness to sustain the venture.

One quickly learns that it is easy to start a business. But running a business is a an entirely different ball game. Running one’s own business is probably tougher than anything you have done before.So one is owed to himself to the reason of starting a business. One is supposed to take time about it before committing   the time, money and resources to a new venture.


The following are the reasons why people like to start their business:

Control

The people start business because they do not like to have a boss. This means they want to make their own decisions. That is great-as long as they realize that even in your own business, many of their decisions will be dictated by government regulations, customers, and even their employees. But having, own business gives people far greater opportunity to exercise their own free will.

The idea

One is having one great idea or a product that will revolutionize the world. No one is currently offering it and you think you should not waste any time in going ahead.

Flexibility

Starting ones business allows one to work when ones want to and spend time with their kids when they want to. Running one’s own business does give the flexibility if one want it but now probably one will be spending much more time on the job. Remember, now, the buck stop with you

Money

It is the oldest and the most common reason. Most people start a business because they feel that it is the only logical way to become wealthy. Most of the wealthy people have got their money through business, either by starting one or by inheriting one.

Not everybody who starts business end up being wealthy. The success rate may be around 10% and many of the successful ones would achieve success very late in life. So it is not them but their children who will enjoy the fruits of their labour.

Many would be entrepreneurs make a grave mistake. They just want to be in business. They are not sure what that means, but they have some vague dream of success and think that they will recognize it when they see it.They may hate their job,are bored, or have just laid off-they are moving from something negative(such as building a business with a clear vision for the future)

This may not be the right path to entrepreneurship. Many people start their business with what they think are clear reasons.(more money, prestige, a sense of accomplishment, more flexible work time, being their own boss and so on).That is good first step, but you need more. Begin by defining your primary goal, then work from there. From the very beginning, you should plan and think about what you hope to get out of your business, in the short term and in the long term.

What do you hope to achieve by being an entrepreneur-personally, financially and professionally. How much money do you want to make? How much free time you want for you and your family? How many or how few employees do you want to have? When you are ready to retire, will you want to pass the business on to your children, shut it all together, or sell it? It may seem unnecessary to answer these questions before you start, but that is exactly the right time to do it. You can increase your odds of success by thinking clearly, from the very beginning, about your primary goal and what you are willing to give up to achieve it.

There are always tradeoffs, and the sooner you have them clearly in mind, the better off you will become. For example, it is going to be hard to give equal weightage to goals of maximizing income, working part time and having no debt. Any of these are valid goals, but you will have to choose less of some to have more of others.

Set clear goals. If money is the main motivation factor, understand how much money you want to make and how much money you need to make.(These two are usually not the same).Aim high, set financial targets beyond what you are making now, but be realistic. Once you have set goals and have a realistic expectation of what you have to do and what you have to give up in order to achieve those goals, it will be easier to work towards those goals. Also it will be easier to stay motivated  as you have you sights set on desirable and achievable goals.

Advantages and Disadvantages of running  own business

Advantages
(i)                 You are the boss
(ii)               All profits are yours
(iii)             There will be greater variety in roles and tasks
(iv)             Increases self confidence
(v)               Work can be very satisfying
(vi)             Success will give you immense satisfaction
Disadvantages
        (i)You are alone
        (ii) All decisions are yours
       ( iii) All loses are yours
       (iv)  Work may no be satisfying
       (v) You will need to put in long hours
       (vi)       Lack of success will affect self esteem
(vii)           Exiting the business is difficult
(viii)         Pressure will affect social and family life

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