Top 10 Reasons People Start a Business (and The One that Matters Most)

Why do people go into business for themselves?

When people go into business they do so for various reasons. Some go into business because they are sick of working for someone else and want to be the captain of their own shop…er, ship. Some go into business because their parents owned their own business and the apple don’t fall far from the tree. Others go into business because they see a need – they want to help their downtown or help a struggling coffee farmer. And of course many people have a mix of reasons including a number of the following reasons.

Here are a few facts and figures from an informal survey done by a UK business consulting group:

What Motivates People To Start Their Own Business? We asked respondents, who owned their own business, what motivated them to start it.

Why start your own business? (Total figures)

1. 59% Be my own boss (same % as US respondents)
2. 50% Desire to pursue a business idea
3. 50% Financial ambition (US respondents 53%)
4. 44% Frustrated with how big companies operate (US respondents 38%)
5. 35% Took advantage of an opportunity that emerged in the marketplace
6. 15% Lack of opportunity in previous employer
7. 10% Other
8. 9% Invited to run someone else’s business
9. 1% Inherited a family business
10. 0% Love of product  - (author added)

The one thing that is clear and common, up to this point, is that the desire to ‘be my own boss’ is the most cited reason selected by these business owners for starting their own business. There is a clear driver amongst these entrepreneurs; namely to be independent and in charge of their own destiny.

None of these reasons are inherently wrong, but I will say that some of them are not a good foundation for a long-term successful enterprise. Just wanting to make lots of money is probably not the greatest foundation for making wise business decisions. Neither is running someone else’s business.

But there is one thing this list does not include. It may be part of one or two of the listed reasons, but it is nonetheless not listed. I’m not sure why it isn’t listed but, I do think it is so important, so critical to anyone who starts and runs a business, that not having it will cause many to fail – it is what I call, “love for the widget.”

Love the widget

I love coffee. And some of you coffee enticed-passionate for the little bean-gonna start a coffee business people probably created your business because “everyone needs access to a fabulous cup of coffee” right? That’s great, but you probably realized, or soon will, that being in business takes so much more than just loving a bean. For those of you to whom coffee seems like a fast growing market and a great place to start a business, you’ll be faced with harsh reality when the coffee-loving public shows up on your doorstep and you are found wanting.

I am not saying you must love coffee to succeed. But, I can say that if you don’t, the cards are stacked against you big time. If you don’t love coffee, who is going to know whether you serve a good cuppa or not? The first intelligent looking-teeth brushed-not smelly applicant you hire? A former Starbucks employee who convinced you they are the next coffee-messiah? Your kid? Sorry, the coffee biz is different than the wine biz. If I buy a bottle of 1992 Domaine Romanée-Conti and open and serve it, there isn’t much to screw up. But if I buy a pound of Kenya Thiriku Top Auction Lot from PT’s Coffee I can screw it up any number of ways (I won’t Jeff, I promise).

Love for the product, and at least a somewhat accurate knowledge of purchasing, storage, handling, grinding, brewing and serving will make all the difference in the world to whether or not coffee lovers come to your store. Now I admit, partly because I am not a roaster, there are certain limitations to what our store offers. But, my love and passion and attention to all things coffee set the stage; and my hiring people after that who are even more passionate than I am, has put us in a place where we serve a consistent and great cup o’ joe.

Example from a failure

I once started a business out of opportunity. Not bad, just what it was. An opportunity arose for space next to our store we couldn’t pass up. We secured the space. We then had a brainstorming session as to how to fill the space and make money. Thus began my 5-year odyssey with the smoothie. Not that I don’t enjoy an occasional great smoothie, but my heart and my passion were not in wheatgrass and ginger shots – even though we sold them. I’m also not saying that is the only reason I failed, but I know it definitely had something to do with it.

I also franchised the business and had struck a deal with a development group for them to grow the concept in multiple states. The group, an attorney and a business consultant, who had chosen my concept, had looked at a number of concepts before deciding to go the smoothie route. They told me in their decision-making process they had looked at everything from dentist offices to laser hair removal businesses. The ended up in the smoothie business because,

“We realized that if we were going to go into business, we had to love the widget we sold.”

I never forgot and now pass that baton to you.

Love the widget.