There are many reasons why people decide to start their own business. Below, we will take a look at some common answers to the question “why start your own business?”.

Pursuing a passion

Pursuing a passion can be a contributing reason for starting a business instead of remaining employed. The idea of pursuing a passion while also making enough money to pay the bills is of course very appealing. On the downside, some people find that turning their passion or hobby into their daily work sucks some of the fun out of it. It is therefore not a decision to be taken lightly.

Income potential

When you have your own business, your income is not decided by bosses above your head. Instead, how profitable your business is will determine how much it can afford to pay you.

You will also be in a more flexible position when it comes to determining how you want to be paid. Maybe you sometimes prefer extra contributions to your retirement fund over cash-in-hand? Maybe you want the company to pay for house cleaning so you can work longer days, instead of simply raising your pay.

Exactly how you will reap the benefits of your successful business is something best discussed with a lawyer or accountant specializing in this field, because there are some tax laws that need to be adhered to if you want to avoid horrible financial pitfalls.

It is a very good idea to put money in a rainy day fund when the business does well.  That might not last.  Try to invest money and build a passive income that you can live on if the business fails.  Click here to find out “what is a passive income?”

Do not use all your money to increase your saving, make sure to invest in your business as well.  You need to find a balance between investing in your company and saving for a rainy day.

Turning a good idea into reality

Many people start a business because that notice that a product or service is lacking and they want to do something about it. Maybe you have invented a product that didn’t exist before, or maybe you have noticed that a certain service isn’t available at all in your region.

New lifestyle

For some, the main reason to start their own business is to have a lifestyle change. Instead of being tied to hours determined by your employer, you will have more flexibility and freedom – at least in theory. For many, the start-up years are really though and they spend more time working than ever before. Still, you will most likely have more control over when you work.

Realizing your full potential on the work market

For some people, starting their own business is the best way to realize their full potential on the job market, since they find employers unwilling to hire them or give them positions where they can flourish. Starting your own business can be a way out if you are doing an excellent job and are ready for the next step, but still, find yourself stuck in menial positions without any real opportunities for advancement.

Failure to getting hired or promoted even though you are a hard worker with suitable skills can, for instance, be due to discrimination or because of an over-abundance of eager applicants with the same qualifications and skill set. Regrettably, there are also some employers who feel threatened by employees with great potential and prefer to keep them down – even if that decision is ultimately bad for the success of the company.

Self-expression

Working for your own business can be a way to bring more self-expression into your life. You can be more experimental and try out different tactics to see what works best.