What Keeps People from Starting their Own Company
If you own your own company, then you have a lot of advantages; you can run the company with your own vision, set yourself up for new found financial freedom and can give yourself a big opportunity to take a lot of pride in your accomplishments. With that being said, you as a business owner also take on a tremendous amount of responsibility for the welfare of not only a company but the employees as well and the chance you could lose everything you have if the business does not become a success. These are the reasons why it is never an easy decision for you to take the leap of starting your own business.
In this article, I explore several reasons of what keeps people from starting their business by going through the following sections: 1) an introduction, 2) internal factors, 3) external factors, and 4) a short conclusion.
Starting a business is never something that should be done without a lot of thoughts and some very careful planning. If you decide to be a potential business owner, you not only have to look at such things as finances, business locations, and potential customer bases; but you also have to look deep inside yourself and determine if you have both the physical, mental and emotional makeup to be a successful business owner. Once people go through the planning and thought process of starting their own business, most of them often decide it is not in their best interest to go ahead and do that.
INTERNAL FACTORS THAT KEEP PEOPLE FROM STARTING THEIR BUSINESS
I mentioned that before you start a business you have to take an honest look at who you really are personality wise and at the individual talent you possess to not only start a business, but to make it successful in the long term. These are some of the internal reasons that make people decide not to start a business; many of these when combined together will become a huge roadblock to a person even starting to consider starting their own business.
No Clue How to go about Starting a Business
No matter how small a business you as a potential owner want to start, that business will require to have certain things done in order to get it off the ground. Many people do not have a clue how to go about doing this, and this has a tendency to make someone very apprehensive to undertake the business startup process.
Some people just simply don’t have the proper knowledge of a product or service that it takes to start a certain business. You as a potential business owner can have the best business idea in the world but without the critical know-how to implement and run that type of business it may prohibit someone from starting that business. The only way it can be successfully done is by hiring another person who does possess the knowledge required and then the owner is taking a lot more risk because they will then have less control in important business areas.
Absence of an Idea And Creativity
It is a big world out there that has become substantially smaller due to such things as air travel, television, mass media and the World Wide Web. It is not easy to come up with an idea for a sustainable business these days. You as a potential business owner have to be very creative and unique when you start up a new business and often have to come up with an idea of how to make your product or service special. A person that does not have the ability to do this will have a tough time entering into and being competitive in their prospective market.
Just like a person may not possess the skills necessary to start a business, they may also not meet the psychological needs that are needed for starting a business. Here are some psychological factors that can become a roadblock in the path of anyone that wants to start their own business.
- Fear of Failure: There are few things as psychologically destructive as a person who undertakes a task and fails badly at it. As there are a lot of things that goes into starting a business, and if a person fails in that quest then the psychological effects can be tremendous. The subsequent loss of self-confidence and self-esteem can in many cases be more damaging than the financial aspects of a failed business itself. Many people are not willing to risk ending up feeling like this if their business is not successful.
- Fear of the Unknown: One of the most basic fears that is in everyone’s psychological makeup is the fear of the unknown; it is a basic fear that makes itself known the moment a person comes out of the womb. When you go on a trip, you are much more comfortable travelling a route you have been over many times before as opposed to going a new way the first time. It is similar when starting a business; the fear of leaving one’s comfort zone is enough to keep anyone from trying to start their own business.
- It’s an Intimidating Process: Not only do some people have no clue how to go about starting a business, but many are also very intimidated by the business startup process itself. It can be a little overwhelming when a person is looking at doing such startup tasks as pulling business permits, getting certificates, taking out insurances, setting up banking accounts, applying for financing, hiring employees, looking at how to market a product or service and also finding a business location. Not to mention that these things are often done in conjunction with someone who is about to risk a large sum of money and their future financial security on that same new business being successful.
Disruption of Your Personal Lives
- Time with Family: There are few things that are more important to most of us than your family and spending time with them. It is no secret that even if a person has the skill and knowledge to start a business, a person often will choose to keep their present job so they can spend time with their family instead of trading that for the pressure and time commitment it takes to start a new business.
- Love Life: Filling the need for companionship is a huge priority for some of us. Even more so than the need to chase the riches and self-esteem that may accompany owning your own business. Starting a business can be a demanding process that leaves little time to develop or maintain a relationship.
- Social Pursuits: Hobbies, sports, clubs, groups and the pursuit of other social needs can be a higher priority to some people than chasing the dream of owning their own business. Once again, many potential business owners are not willing to trade their active social lives for all that starting a business entails.
- A Simple Life is all that is Required for Some People: For some, a simple life that meets their financial and emotional needs is the only comfort zone they need. They simply have no desire to get involved in all the different types of commitment it takes to start their own business.
Not Possessing Ownership Qualities
- A Better Follower than a Leader: Some people are much better at performing at their job when they are being told what to do and how to do it. When owning a business a person is fully in charge of the authority and decision-making; some people do not function well in this role, and it is far from their comfort zone. A person who realizes this about themselves will most likely never try to start their own business.
- Disorganized: One of the quickest ways for a new startup to fail is if it lacks the organization that is critical to laying a solid foundation to achieve forward progress. It is very unlikely that a disorganized person will be able to successfully start a new business unless they commit to improving in this area.
- Unmotivated: It takes a lot of internal motivation to persevere and overcome all the hardships and obstacles that a person will face daily when starting up a new business. If a person is not highly motivated and have a clear vision for the future of the new business that drives them forward, then navigating through a new business startup may not be possible for that individual.
- Gives up easily: There are a lot of brick walls and hurdles to overcome when starting a new business. If you have the type of personality where you give up on things easily, then most likely you will not be up to the challenge and rigors of starting their own business.
Don’t want a Higher Level of Responsibility
- To Employees: It can be very intimidating and very stressful having the task of providing financial needs for employees by running a successful business. Many people simply do not want that type of responsibility on their shoulders.
- To the Business: Being a business owner is all encompassing, and it takes so much time and effort. There is a tremendous amount of responsibility that goes into the decision-making process for the business to ensure its success; some people are just not willing to accept this type of responsibility.
- To Clients: Every business has clients that they supply with goods or services, and this creates additional responsibility. Your business then is not only responsible for the success of their company, but plays a big role in the success of another company too. That creates a lot of additional pressure because if your business fails it will be like a domino effect and could hurt your clients company as well. Many people are just not interested in dealing with such a high level of responsibility.
- Stress: Many people do not see the tremendous amount of stress that it takes to startup a business as an even trade for the potential financial and personal rewards. The very thought of this will intimidate many people so much they will not even try to start their own business.
Money Generated from a New Business Can’t Buy Happiness
Last but not least for internal factors is the age old adage that money can’t buy happiness. Starting a business in order to earn millions with it is typically a wrong motivation. When you consider all that was mentioned above, some of you may often come to the conclusion that owning your own business will simply not make some of you happy and is not worth it.
EXTERNAL FACTORS THAT KEEP PEOPLE FROM STARTING THEIR BUSINESS
Besides a person’s internal makeup and needs, there are other external factors that keep people like you from wanting or being able to start your own business too. Here are some examples of those.
- Not Sure You Can Get the Financing: There is nothing that will sink a new startup faster than the new business being undercapitalized. You as a business owner can have the clearest vision in the world for your business and make the best decisions on how you can take the business toward that vision, but it’s all for naught if the business does not have the working capital to take the necessary steps to reach its goals.
- Scared to Risk Lifelong Savings: It takes most people a long period to build up their savings and give themselves the peace of mind that they have some money in the bank to fall back in times of trouble. That type of financial security is not something that people will easily give up and risk losing by starting their own business. The fear of once again being at a point where they have no savings to fall back on is enough to keep anyone from taking the leap of starting their own business.
- Security of a Steady Income at Your Current Job: A steady, reliable income is a hard thing for someone to give up to pursue the dream of owning his/her own business. This is especially true if you have a family to support which depends on you in the majority of things. Many people will not risk giving up an income that is steady and reliable for all the uncertainty that surrounds the money making the ability of a new business startup.
- Loss of Benefits: It is often not only the security of a steady income that keeps someone from trying to start their own business. Other factors such as giving up medical benefits, 401k matching plans and educational assistance help to convince a person that starting their own business is not in their best interest.
Another area of external factors that may keep you from starting your business is too much competition in your area of expertise.
- Saturation of the Market: The best new business idea in the world, even if it is carefully planned out, cannot work if there is already an overcrowded situation in that business’s projected market. A business has to be able to secure a steady and viable customer base in order to succeed and grow. Some markets are just too oversaturated with competing businesses to think even about starting a new business and entering into them.
- Reluctance to take on Established Players: It may be intimidating for you as a new business owner to try and take on a big established player in a niche market. Established businesses are usually well connected and have personal relationships with their customers, have lots of financial resources and have made their business successful by learning from the mistakes they have made the along the way. A new business starts from scratch, and it may be a while if ever, before they establish these things and sometimes the business will fail because of not growing fast enough.
As a new business owners you also face the hardships that an established company can place on you to keep you from entering the marketplace too. An established company can do such things as lowering prices and taking less profit to inhibit a new business ability to generate income and survive. The knowledge of those things which you have as a prospective business owner is often enough to keep some of you from trying to enter the marketplace with your own business.
As you can see, there is a tremendous amount of things for you to consider and worry about when it comes to starting their own business. You will not only have to overcome your personal fears and limitations to start a successful business, but you will also have to battle pressures from the outside as well. Starting a new business can be a daunting and intimidating task to say the least and many people are reluctant to take this kind of task head on.
Starting a new business is a lot like running a hurdles race in track; if someone hits too many of those hurdles, they will lose both their physical ability and mental will to continue. When you are in the planning stage of a new business, these hurdles become a lot easier to see, and they look a lot higher too. It is enough to make even the strongest willed and most financially solvent people think twice about going forward with starting a business.
It is safe to say that owning and running a private business is every manager’s ultimate goal. …