M O S T L I K E LY, you have taken a hard look at yourself and your finances, and you think you have what it takes to start your own business. But before
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you get down to the nuts and bolts of making your business a reality, ask yourself one more personal question: “What is my primary reason for start- ing a business?”
It is common knowledge that the first three to five years of business are critical. About half the businesses that are started fail within that time. The two factors that are mentioned most often to explain business fail- ure are weak capitalization and poor planning. Yet when I look at successful businesses, a third rea- son for the failure of a business becomes clear: The business own- ers had weak underlying reasons for going into business. Having strong and meaningful reasons for going into business cements your commitment to a new enterprise and keeps the business going in good and bad times.
Different Motivations of Men and Women
Different people have widely varying reasons for going into business for them- selves. Men and women, in particular, often have different motivations. Re- search done for the Strong Interest Inventory, a career assessment tool, suggests that men and women differ not only as to why they own a business, but also in the kind of business they choose, and in their managerial style, as well. So when you are researching your business idea or getting advice, it helps to seek out people of your own sex who already own similar businesses. The Strong Interest Inventory measures people’s interests—not their abil- ities or skills—by comparing their results to the results of samples of people employed in more than 100 occupations who are satisfied with their careers. One occupation that is included is small business owners. The inventory’s sample of small business owners includes such diverse businesses as pro- fessional services, consulting, retail sales, real estate, insurance, and skilled trades. The business structures include sole proprietors as well as fast- growing small companies. In the inventory, women entrepreneurs often said that they like to work in business settings where they can organize and struc- ture tasks or data for well-defined projects. They are results-oriented and en- joy taking charge of the practical details necessary to solve a problem quickly and efficiently. Most often, they say that they like the specific activities of run- ning a business and want to use their best talents. In my experience, women choose their own business more often than men do because they want to have
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Having strong and meaningful reasons for going into business cements your commitment to a new enterprise and keeps the business going in good and bad times.”
flexible hours and make a significant contribution. They also are more likely to establish management practices, such as team management, employee au- tonomy, and support for work/life balance.
Men, on the other hand, prefer action-oriented environments, where they can work directly to produce tangible products or services and can work alone rather than supervise others. They are willing to work long hours, and most of- ten they say that they want to earn a good income and like the specific activi- ties of running a business. Men often thrive on the problem-solving aspect of running a business as well as focusing on quality control. Also, some men pre- fer to lead by example rather than by facilitative management.
People of both sexes tend to be enterprising types, which means they are motivated to persuade, sell, manage, and lead—all of which are important skills when starting and running a small business.
Common Reasons for Going into Business
Interests often influence the primary reason why a person chooses to run her or his own business. Common reasons include:
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Being your own boss•
Earning a good income•
Using your best skills•
Seeing the results of your work•
Having flexible hours•
Experiencing the variety of day-to-day management and tasks•
Working at home•
Developing a business around one of your strong interestsWhat’s your reason? Be honest with yourself. If your primary reason is your reaction to a current workplace issue—for example, a personality conflict with your boss, a long commute, or a low salary—it may not be enough to keep you moving through the ups and downs of starting and running a business.
Cultivate Your Other Interests. Adding to your expertise in your field makes perfect sense; however, you may think you’re just too busy running a busi- ness to garden, bike, travel, or join a social club. Why pursue these inter- ests? Because you enjoy them. Doing things you like also makes sound
business sense. If you have a wide range of interests and activities, you are more interesting to others, and you can talk about a variety of topics with people you meet. In addition, you often get the best ideas in the most un- likely places—for example, you may get a solution to a nagging business problem just as you’re teeing off at the 9th hole. Also, when people get to know you outside the business world, they feel comfortable referring busi- ness to you.
Your personality, expertise, enthusiasm, and financing are all very impor- tant for success. However, why you want to go into business for yourself must be compelling enough to keep you committed.