Why start a business?
Tools & Resources
Key learnings
- Understanding your motivation: Identifying why you want to start a business—whether for financial reasons, personal fulfillment, or problem-solving—helps shape your decisions and long-term commitment.
- Aligning with your vision: Sustainable businesses are often driven by passion and a clear vision, rather than just a short-term need like financial stability.
- Realistic decision-making: Evaluating what you’re willing to invest and sacrifice, as well as considering alternative paths, ensures you make an informed choice about entrepreneurship.
Starting a business is a big decision, driven by various personal and financial motivations. Whether you seek flexibility, financial security, or a passion-driven venture, understanding your reasons is crucial. This article explores key factors to consider, helping you assess whether entrepreneurship aligns with your goals and what it takes to succeed.
People start businesses for so many different reasons and are motivated by different things. It might be a change in your life circumstances – such as a redundancy, returning to work after a career break, a change to your health or responsibilities – or feeling burned out with your current work and seeking a change.
You might be looking to improve your financial situation due to rising costs. It could be a nagging idea, something you’re really passionate about that you want to make a business out of. Or maybe inspiration has struck, and you’ve found a novel solution to a problem you want to make available for other people.
Your drivers for starting a business are important, as they are the foundation on which you make decisions on the type of business you want, the size, how much risk you’re prepared to take, and how much you want to invest into it.
The strongest, most sustainable businesses are usually born out of a vision you’re passionate about achieving that drives you towards an outcome you want.
That’s not to say you can’t be successful if you simply want to solve a problem such as not having enough income. However, your motivation is likely to wane once you get closer to solving your problem, so you may want to factor that into your decision-making.
Ask yourself these questions to help you get some clarity on your drivers and vision for your business journey:
- What do I hope starting a business will give me that I don’t currently have?
- What do I want to create and what impact will it have on people and the planet?
- Are my motivations for these focused mostly on moving away from things I don’t want (eg to be struggling financially, burnout, poor management), or towards the things I do want (eg flexibility to do school runs, freedom to travel, make a difference to people/planet)?
- Is starting my own business the best way to achieve these goals, or are there other options I could explore?
- If starting a business is the best way to achieve these goals, what am I willing to invest and what am I willing to sacrifice to make the business a success?
- What am I not willing to invest or sacrifice?
Your answers to these questions will help you to decide whether you move forward with exploring your options for starting a business – and what kind of business you want.
If you’re still not sure, you can find quizzes on whether you’re ready to be an entrepreneur, or when not to start a business that might give you more food for thought.
We encourage you to do plenty of research and be clear on what you want and expect. It can be useful to consider some of the myths of starting a business so you’re well prepared.
Next steps…
- Reflect on what you want to achieve, what problem you’re solving, and whether entrepreneurship is the best path for you.
- Conduct market research to understand demand, competition, and the feasibility of your business concept.
- Determine what resources (time, money, effort) you’re willing to invest and what risks you’re prepared to take.
- Read our essential guide to starting a business.