If you really don’t like the idea of working for somebody else, then running your own business is a great way to earn your living. So, if that daily commute is starting to grate and you reach the conclusion that a day working for “the man” would be better spent working for yourself, then maybe it’s time to bite the bullet and start to work for yourself.
You are by no means alone when you start to seriously consider setting up your own business. Government statistics show that there are more than 5.9 million small businesses in the UK and that 1843 business are founded every hour! There is a large number of people who are willing to put their business ambitions to the test. However we’ve all heard about the high failure rate for new businesses – 70% fail within the first five years, so you have to be brave and ambitious to give up your salary for the challenges of building your own business.
How big is your ambition?
For many people it is a nagging thought that they could do a better job than their existing employer – maybe through better customer service or better products, that drives them to build their own business.
Some find it difficult to be managed by someone else or feel that their destiny is in somebody else’s hands rather than their own. Most people who strike out on their own are driven by the desire to earn more money however, and feel that their steady employment restricts their ability to meet their financial aspirations.
Ambition is a key driver for self-motivated and entrepreneurial activity. Who hasn’t wandered around a marina looking enviously at the hugely expensive yachts, or dreamed about flying via private jet with a company like Momentum Jets? A beach house in Florida might be attractive, or owning a smart apartment in a vibrant capital city could be the inspiration to boost your earnings by building a successful business.
Leadership vs Attention to detail
It is often said that a leader knows which wall to put the ladder against, however it is someone with strong management skills that can get people up the ladder and over the wall. Both skills are clearly important, but it is critical that you, the entrepreneur, understands which type of person your are – a leader or a manager.
It is possible to be both, of course, but it is highly successful entrepreneurs like Elon Musk who are strong business leaders who can command the attention of the media and drive a business forward with their thought leadership and energy.
The business leader can rarely achieve success without a team of managers and staff who “get the troops over the wall”, paying attention to the details that are vital for the smooth running of the business, making sure that it fulfils regulatory and tax requirements and functions efficiently and cost effectively to deliver its products and services to its customers. Customer satisfaction is key for any business.
For example, another truism is that cash flow is the life blood of any business, so keeping track of input and production costs as well as revenue is critical. This is why adopting best small business bookkeeping and accounting practises should form a core component to any fledgling enterprise. This requires attention to details that are often not found in business leaders and is where effective management and delegation skills comer to the fore.
So is a business startup for you?
If you have a strong desire to found a startup business, then it is very likely that nothing will stop you from giving it a go. From your point of view, every hour spent working for someone else is an hour wasted. You will be driven by financial and lifestyle aspirations that can only be achieved by working for yourself unless you are fortunate to be allocated equity as an employee.
It is important to be aware of your skills and weaknesses and to assess whether you are fundamentally a leader or a manager. Any successful business requires team working from staff with complimentary skills so an entrepreneur setting out on his or her own might be able to get a startup business off the ground, but it will be building a team that allows the business to flourish and grow.
So, if the challenges of running your own business don’t deter you, and you are not fazed by the business failure statistics, what are you waiting for?