Every year the number of people that are jumping at the chance to start up their own business is increasing. While it is a brave move and sometimes can backfire, the vast majority of people make it to a second year. Statistics show that 80% of these new businesses make it to a second year. However, this number drops to 56% with those that make it to the fifth year.
The most prominent reason that these companies fail is down to the lack of interest in the market. However, why do people begin this adventure in the first place?
Be your own boss
Not many people who work in a corporate office love their boss; hence why the chance to become your own boss is an exciting opportunity. However, this only tells half the story, as it is perfect for those younger people or those people who have children or other engagements. This is because since you’re your own boss, you can select the days that you work and the number of hours that you’re in the office on any given day.
While it is fantastic in hindsight to think that you can work four day weeks and the bare minimum hours; it very rarely works out like that, and in fact, you’re effectively in the office 24/7.
Work on something you love
Of course, the most critical factor that needs to be taken into account before starting up is studying the market. Then should you find the gap that combines with the element that you love to do, and can see a career in; then that is the perfect match. The chances are, if you are starting up your own company, you’re leaving a company behind where you were doing a job that you despised or became bored of. If you are working on a product that you love and have a desire in, then undoubtedly it has a better chance of succeeding.
Work wherever you like
The younger people that start-up appear to do so because they can travel at the same time. However, as part of the research process, the area where you are thinking of working must have an impact on the decision you make. Cities such as New York and London have become saturated and mean that there is limited room there for new companies.
Meanwhile, a city such as Birmingham has become a hotspot for start-ups and was named as the most popular city outside of London for successful companies.
The boss always makes more money; that is just a fact of life. The main reason for some starting their companies is purely financial. You will make money by starting your own company; considering of course that it is successful. However, these gains will decrease should you invest too much into a team and the product so the planning must be carefully examined before beginning. If done right then you could be making more daily than you have done at any previous job.
So there you have it, you can increase your bank balance while working when you want and doing what makes you happy. Why wouldn’t you want to start-up your own business?