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Do you want to start a business? Are your reasons valid? Many people do want to start a business. But there are also many people who have gone into business and realise that they went into it for the wrong reasons. Imagine climbing a steep hill because there is a reward at the top of the hill. Then when you do get to the top of the hill, you realise that the reward there is not the one you wanted. It would mean that you climbed that steep hill for the wrong reasons. Let me save you the heartache when it comes to starting your own business. Make sure you are aware what the reward looks like. These are some of the reasons not to go into business:
- The first and obvious one is to make money quickly. Never go into business to make money quickly,(Click to Tweet this thought) Do you know what happens to majority of people who win money quickly i.e. through gambling, lottery, quick deals etc.? They loose it just as fast. They were not ready for the money. The lesson here is that there is no shortcut to the process of wealth creation. The process exists for a reason. Character sustains wealth. The other shortcuts do not. In these situations the money came but there was no character to support it. The same reason you gambled is probably the same reason why you will spend money recklessly. A one bob character cannot support millions. Running a business will test your character for a reason. There are so many things you will go through that only your character will get you out of. If money came quickly, just like gambling, we would tend to use it badly. Your business will not be sustainable or grow if you get into the habit of using money badly or not being able to plan properly. If you are committed to the process and patiently go for it. If its about quick instant money, maybe not.
- To impress. Many people have looked at entrepreneurs who have been there 20 years and want the same recognition, influence, status, material possessions and whatever else they perceive as impressive. And they want it instantly. Before all those nice things you think you will get, you will possibly go through a very unimpressive stage. Go and talk to real business people and what they have gone through. You may hear stories of inability to pay rent, being auctioned, losing clients, losing good employees, not being able to hire, sleepless nights, dreading phone calls from the banks, mistakes with shareholders, scary tax audits etc. The nice things about running a business that you perceive from somebody else’s situation is built on the backbone of all this other not so nice stuff. Over and above that if the goal is to impress other people you will never arrive. There is always a new standard. Many people in business rush to look like they are doing well to the detriment of the business. They buy flashy cars with money needed in the business to look good. First of all it will negatively impact the business. But secondly if that is the symbol of doing well, there will be another model of car out soon, and your car will no longer be that impressive so you have to upgrade and keep upgrading. Then the business becomes a short-term vehicle to support impressing other people which is basically not worth the effort.
- To copy what someone else did.I have a friend who is in the beauty industry. Somebody has recently come and tried to copy exactly what she does to the extent of even offering almost all her employees jobs. Though it is definitely causing some strain in her life (remember the non impressive things I mentioned) there really is no comparison in the two businesses. This other copycat business lacks the professionalism, structures, brand that my friend has spent the last 7 years putting up. When you copy somebody else you completely underestimate what it takes to do what he or she does. You have to have your own plan, own strategy, own ideas, own reason, or purpose to your business. It can’t simply be copy and paste. This does not necessarily mean you have to come up with revolutionary product or service. Two separate businesses can be selling the same product or service but appeal to different markets, have different strategies and simply have a different culture. That’s why we can have several brands of supermarkets.
- To be your own boss. Many people envision spending copious amounts of time on golf courses because they are their own bosses. Or sleeping in everyday. No one may tell you what to do but to make it work and put food on the table, you cannot have that boss mentality. You have clients that need to be happy with your product or service, taxes to be paid, a team to lead, suppliers to build relationships with. Don’t count on whiling your time away on the golf course immediately. If anything you will work harder than you have ever worked.
- Because you know it all. You don’t. Running a business is like being in school all over again. You may be extremely good at something. Maybe even a professional in a certain area. However when the shoe is on the other foot, you will understand how much more you need to learn and some of it you will inevitably learn on the job. Leadership, money management, marketing, sales, building relationships, handling a crisis, managing a team, tax etc. Many people actually start businesses in areas where they have no formal training. Entrepreneurship does not follow rules so you do need to think outside the box.(Click to Tweet this thought)
Now that we’ve gone through some of the reason not to go into business, next week let’s uncover why you should actually go into business. You may be in just the right space to go through this process and capitalize on the right rewards. You may have also been feeling the urge to do it. If that’s the case, let these same points also save you from procrastination.
To learn more about how to use your money as a tool to reach the heights and goals that you had only imagined, click here to learn more about the Centonomy Personal Finance program, Centonomy 101! Ready to register? Click here!
Waceke Nduati-Omanga runs programs on Personal Finance Management, Entrepreneurship and Career Success.
Find her at waceken@centonomy.com| twitter @CekeNduati| Facebook /CekeNduati
Character sustains wealth.