9 Compelling Reasons to Start a Business in 2020
Have you been holding off on your plans to start a small business? Hold off no more! Here are compelling reasons to start a business this year.
Looking for reasons to start a business this year?
If you’re even thinking about becoming an entrepreneur, there’s likely a reason to back up your urges.
People start businesses for many different reasons. Finding a reason that speaks to you can be a motivator to get you to take the leap and stick with your new business endeavor.
Here are nine reasons you should consider starting a business.
1. Higher Income Potential
When you work for someone else, your salary is limited.
Sure, you can get an occasional raise. But the average raise is only 3 to 5% per year.
You could climb the corporate ladder or land a better-paying job. But you’re still limited to your new salary, even if it’s higher.
Bonuses and commissions can give you extra income, but they’re not guaranteed.
When you start a business, your income might be tight at first. But you have the potential to scale your business and increase your salary significantly.
Being the business owner puts you in charge of all decisions. When you make strong decisions that increase revenue, you can pay yourself more.
2. Filling a Market Need
Do you have a new idea or a free take on something that fills a need in the market?
That’s an important reason to start your own business. Instead of keeping your idea to yourself, share it with the world.
Your new idea could help a lot of people solve a pain point they have. By filling a gap in the current market, you position yourself to grow.
You can also claim your idea as an official business before someone else does the same thing.
The entrepreneur’s lifestyle is appealing when you’re sick of the daily grind of a full-time job.
You have more flexibility to work when you want. Many people start their businesses part-time while still working a full-time job.
If you go all-in with your business, you might have more freedom to work when you want. This can help you better accommodate your family schedule or other commitments.
But running a business doesn’t mean you can put in a few hours a day and make six figures. You’ll likely put in more hours than you would at a regular job, especially when you start the business.
One study showed that 33% of small business owners put in over 50 hours a week. Another 25% clocked over 60 hours per week.
4. Creative Freedom
When you run the show, you get to decide your company’s mission, branding, and personality. You have more control over how you grow your brand.
If you like taking risks and making up your own rules, this could be a huge reason for you to start your own business. When you work for someone else, you have to follow their processes and fit their mold.
5. Increased Opportunities
With so many online options and technological advancements, new business owners have a wide range of opportunities. It can be easier and cheaper to run a business with the help of apps and online resources.
The various business resources can remove many of the barriers that previously stopped people from starting businesses.
6. Multiple Funding Options
Going into entrepreneurship with a strong financial base is helpful. It can take months or years for a new business to turn a profit, depending on the market.
But you also have multiple funding sources available to start your new business.
Bootstrapping means you’re funding it yourself, often on a limited budget. This is an option for many online businesses that don’t require a lot of overhead costs or physical products.
Small business loans are readily available. SBA loans often have looser requirements than traditional business loans since lenders have added security.
Crowdfunding is another option that’s growing in popularity. People who want to support your business donate any amount they want. In return, they usually get some type of reward or equity in the company.
Investors are also an option. They provide funding in exchange for part ownership. This can mean you lose some control over business decisions, so choose this option carefully.
7. Opportunity to Help Others
Your business gives you a chance to help out in many ways.
Many businesses choose to support charities with a portion of their profits. This allows you to build positive PR and help a cause that’s important to you.
Sponsoring local events is another way to help your community. Your company helps financially support the event, and you get advertising within the local area.
You can also help out by hiring other people as your business grows. Your company can provide financial support and benefits for your employees.
It’s your opportunity to build a culture that you always wanted in your past careers. You get the chance to be the ideal boss to help your employees thrive.
8. Follow Your Passion
When you’re passionate about something, it’s easier to pour yourself into the project. Starting a business gives you full control over the direction and how you use your talents and passions.
There needs to be a market for your passion, but the vast number of business opportunities, from retail stores to coaching and consulting businesses, means it’s easier than ever to merge your passion with money-making opportunities.
Owning a business allows you to hire people to take care of the parts of running a business that you don’t enjoy. Outsourcing things such as payroll, copywriting, and HR duties is common. That leaves you more time to focus on the things you enjoy.
9. Building a Legacy
A business becomes your legacy. It’s something you can pass on to your kids.
A traditional job brings in money to support your family, but it doesn’t give you anything you can pass on.
If the idea of having a family business appeals to you, starting now helps you achieve that goal faster. You have more time to grow the business, so it’s thriving when you pass it on to your kids.
Explore the Reasons to Start a Business
With so many reasons to start a business, this is the perfect year to take the leap. Keep your reason in mind to stay motivated and keep your business moving forward.
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