21 Reasons To Start An Online Business - How To Start A Business
I could throw a long list of reasons at you as to why someone decided to start a business. I have heard them all from something as relatable, as wanting to earn some extra money on the side to more obscure, reasons like wanting to be the first company to make hats for parrots. All in all different people start businesses, for different reasons. There are no right or wrong reasons. Sure, there might be one or two good reasons why you shouldn't start a business right now. But entrepreneurship. Has proven itself as being life-changing, for so many people that it's worth considering. So in this video, i'll give you 21, reasons why you should consider, starting your own business but before we start, if you are new to this channel make sure to subscribe, so you don't miss out when i publish more life-changing, content. So let's get started with reason number one why you should start your business today. Reason number one you can find freedom. Freedom is the golden promise of entrepreneurship. Over and over again, entrepreneurs, that i talked to point to the autonomy, to independence. As a key driver of their decision to start a business. This isn't just a little anecdote, i've noticed. It's a huge reason that people become entrepreneurs. In 2008. The academic, international, entrepreneurship. And management, journal released stats from a global survey of early stage business owners. Independence, was the most common reason these people gave for starting their business. Within the 25, countries, the study looked at an average of 38, percent of beginning business owners cited independence, as a motivation. Independence, served as a reason for 35, percent of entrepreneurs, in the united states and 39. In the uk. Why does this fervor for freedom move people to hurl themselves, into the crazy world of business. Freedom is having more control, over the course of your life, having the power to direct it in the ways that you want rather than working for the whims of others. Owning your own business means being your own boss, deciding when you work, how you work and what you work on. Of course business owners still do need to cater to market demand. But when you become the business owner, you choose how to do that. It gives you greater autonomy. Reason number two you'll build a source of pride. Accomplishing. Tough things gives us a sense of achievement. Pride isn't just a deadly sin. In healthy doses. It bolsters, your self-worth, and lets you take credit when you achieve something worthwhile. Starting a small business is no small venture. You'll pay for it in sweat, working hard to move onward. But that's okay because entrepreneurs, don't shrink from effort or retreat from a challenge. We aim to do big things. There are no participation. Trophies in entrepreneurship. When you succeed, you'll know it's worth celebrating. The journal of business venturing conducted, a survey of 405. Entrepreneurs. And saw that almost 65, percent went into business at least in part because they wanted to achieve something and be recognized, for it. While some humility, is still important, that pride and recognition, can boost your self-esteem. Why care. A review of research, literature, published, by psychological. Science in the public interest found that self-esteem, works some pretty great magic. It gives you more confidence, in group settings. More persistence, and greater happiness. Moving on to reason number three, you can do things better. No existing, company does everything right. Waste and inefficiency, do settle the private sector, and beyond the balance sheets it's the simple fact that we haven't yet invented, everything that could improve the world. One reason to start a business, then, is to go after these problems. Think about your everyday, life. Is everything perfect. Hell no. At least now and again, you encounter things that annoy pester, and drain you. You wish there was some way to beat these issues, but there isn't so you sigh, complain. And move on, hoping that someday it gets better. But if that's you today, it doesn't have to be, because each little annoyance, you stumble into could be a business opportunity.
There's Another approach, when you have a problem in life, ask yourself, does a good solution, already exist. If not do other people have this problem. If they do, consider, starting a business based around a new solution to your problem. For example, a few young men in the 1970s. Saw a problem with the difficulty, and complexity, of personal computing. So they tried to solve it by creating a new operating, system. Today, we call that company microsoft. If you can relieve a pain point for people, then you have a reason to go into business. Before we move on, if you're ready to take action and build an online business today, make a full-time, income online, and achieve financial, freedom make sure to check out my number one recommendation, to get you started, just click the first link in the description, below for my free training. So reason number four is you can make money. A successful, business could earn you lots of money. Ariana, huffington. The founder of huffington, post, has an estimated, net worth of 100, million dollars. Richard branson, the entrepreneur, behind virgin, had a net worth of 4.3. Billion. Then there's bill gates, who started microsoft. He's sitting at a nice 115. Billion dollars. Money is a big reason that many people start businesses. The international, entrepreneurship. And management, journal study i mentioned earlier points out that across the 29, countries examined, an average of 23, percent of entrepreneurs, are in it to increase their wealth, while it's a common motive, the percentage, of entrepreneurs, who embrace it varies between countries. While the variations, between countries are intriguing. The main takeaway for our purposes, is that lots of people start businesses, because they want to make money. Of course money isn't everything. So wealth isn't the only motivation, that these entrepreneurs, have. It's just one reason among many. Even if you do care a lot about money, it's true that most people, even most successful, entrepreneurs. Will not reach the stratospheric. Wealth of huffington. Branson, and gates. But respectable, amounts of money do matter, and might even make you happier. It's said that money doesn't buy happiness. But that old adage doesn't quite jive with modern research. Some scholars, say that after a certain amount of income, more money doesn't make you happier. But even they conceded, that up until that point more money does help. Some sources suggest a cut-off point of 75, 000. Earning more money after about 75k. Per year doesn't boost emotional, well-being. If this research, is true then a successful, business could catapult, you over the cut-off, line. I think that these empirical, findings, while interesting. Underscore, the fact that this issue isn't like a clear crisp bay. There's a lot of fog, and you have to figure out what works for you how you can best balance the drive for money with other parts of the good life. But no matter how much you care about money, it isn't the only reason to think about starting a business. Let's keep going through the reasons. Reason number five, you'll learn new skills. Don't think that you need an mba this isn't the corporate world, starting your own business is a different critter, and in many cases. You can pick up the entrepreneurial. Skills you need as you go. In fact many people start businesses, because they want to learn new skills. It's a dynamic, way to grow your know-how. When learning new skills, the sky's the limit. And if writing is a skill you improve. You might begin avoiding stale cliches, like the one i just used. Just a bit ago i mentioned the journal of business venturing survey. It also found that education, is a big reason that entrepreneurs, go at it, 65, percent of the people interviewed said that they started their business, at least in part to keep learning. Why does learning fill so much of the plate here. Starting a business takes more than your idea. You need the skills to make it a reality, and bring in customers. Entrepreneurship. Lets you learn those skills as you go and apply them along the way. Since you probably can't be an expert in everything, you can also pay others to do some of these things but the more you learn, the more you can do yourself. Okay, so starting a business can help you learn new skills. Why should you care, first, i'd say that learning is fun. Being able to do new things is just plain cool.
But Second, it carries psychological. Benefits. Since learning new skills, boosts your memory, even as you age. Reason number six, you might lower your taxes. This obviously, won't be your chief reason for starting a business, but it helps. As a small business owner, you may be able to get tax breaks that help your business and even tax breaks that ultimately, help you as an individual. Just a quick disclaimer. I'm no tax expert. You should look up the laws in your country and talk to a financial, professional, before making any decisions, or taking any deductions. Since most of my viewers are from the u s i'll focus on what the americans, viewers could get for their taxes by starting a business. Here's the first bit from the widely beloved irs, itself. Business expenses, are the cost of carrying on a trade or business. These expenses, are usually deductible, if the business is operated to make a profit. What this means, according to the houston, chronicle. Is that you might get to deduct things like magazine, subscriptions. Phone services. Travel mileage. And membership, in professional, organizations. Heck, if you work in a home office, you might be able to swipe some of your rent off taxes. If you need something to run your business, then it might qualify, for a deduction. The irs, also helps mitigate, risk for american, entrepreneurs. According to mashable. You can write off any losses from your business, which means that a side business could help your tax return. Tax laws vary from country to country, so you should check out how your country handles business taxes. Reason number seven, you could create jobs. If you start a company, you might one day need to hire employees. On that day, you'll have created, an opportunity, for someone else. Sure when you first start out your business will be small. But that's not bad, because it's often small businesses, that create jobs. For example, the us bureau of labor statistics, reports, that small firms create sixty four percent of new jobs in the us. And let's not just look at the raw number of new jobs. There's more to it, as the owner of a company. You could treat your employees, well, create a stellar company culture, and make people feel like they're involved in something that's worth it, be the boss you wish you had or perhaps, emulate, a great manager, you've worked under. Reason number eight you can follow your passion. Whether to start a business is a decision you must make. There's another thing you get to decide. What that business does. One reason to start a business is so that your job can be something that thrills you. Most people would love to have work that centers on something they care deeply about. It's time to break out your passion. Well maybe, let's get real, not everything you enjoy could make a business that makes money. But you don't have to give up on turning your passions into a business you just need to be picky. Not everything will work. But something might. Passion doesn't just make a business fulfilling, it might make it successful. There isn't much research in this area, i'll admit, but a 2012, paper in the human resources, management, review, suggests, that the work that has been done shows that passion for the work has a direct, significant, effect on company growth. Reason number nine, you can live with excitement. Freedom, money skills, pride, passion and uncertainty, all blur together to spawn excitement. Starting a business can get you pumped. Entrepreneurship. Amounts to an ever-changing, challenge. New things pop up big goals loom ahead, and you've got to hustle, a soul hustle. You only need to spend a bit of time in the entrepreneurial. Niche to see that it's an exciting environment. Entrepreneurship. Is a race to overcome obstacles, in a grand journey into uncharted, territory, and a jaunt to a crazy theme park whose rides you built. These are metaphors, that describe, starting a business, and we can learn a lot from the metaphors, we use. A study in the journal of business venturing, found that many of the metaphors, we use to talk about starting a business are dynamic, in nature, emphasizing, the constant draw forward, the excitement, of the process, and its creative nature. That's key the excitement, of the process. What the study points out is a reality, that you can see for yourself if you watch videos about entrepreneurship. A reality, that in many ways, starting a business, isn't only about the company you're creating.
It's About how you get there and the intersection, between dreams of the future and the process, right now can exhilarate. That's the excitement, of entrepreneurship. Reason number 10 is that you can leverage the internet. The internet is fertile soil for business growth. Businesses, can leverage the internet to advertise. Blog. Poll customers. Sell products, and reach a wider audience than ever before. Fortune sums up why the web is a mighty reason to start a company. There's likely been no better time to be an entrepreneur. You can reach global markets, use technology, to have smaller, smarter back office operations. And all the while, continue, to be nimble and create innovative, products, and services. There's a word for all this buying and selling on the internet, e-commerce. A word whose importance, has been magnified, by the growth of online businesses. It's not here to sprint, pant and die. It's here, marathon, like for the long term. The internet also offers a host of tools that make starting a business easier, for instance, the power of the web lets you collect data on visitors to a company website, which you can analyze, and use to inform a b testing. Reason number 11, you can escape the rat race. For many, the solution, is to escape the rat race by starting their own business. It's a reason that differs from most of the previously, listed ideas in one key way, in this case, you're starting a business not to get to something like money, passion or freedom, but to get away from the rat race. It's what geographers. And sociologists. Call a push factor. Some people are pushed into business by the crushing reality of the rat race. Alongside, some of the other reasons i've listed, it can be a powerful motivator. This push factor is real. A whopping 40, of australians, are unhappy with their job. Uk, workers are more dissatisfied. Than workers in other european, countries. Job satisfaction. Stands no, lays wounded at its lowest level in two decades. A business of your own isn't easy or stress-free. To be sure. But it's yours, the freedom, pride, and passion of entrepreneurship. Make it a great alternative, to the rat race. There's another part to all this, too. Not only do many people hate their jobs, but many live in fear that they'll lose their livelihoods. Less than half of american, employees. For example, feel that they have job security. 2020, has seen hundreds of millions if not billions of people suddenly out of work or facing job jeopardy. Losing your job can be catastrophic. So it's no wonder that millions upon millions are now turning to side hustles, and startups, to keep their finances, afloat during these uncertain, times. Moving on to reason number 12, you'll have meaning and purpose. A business can be a fantastic, source of meaning in your life. Meaning, or purpose, matters. It differs from happiness. Which i talked a little bit about earlier. And that happiness, is made of moment-to-moment. Pleasures, while meaning stems from an overarching, sense of purpose. Starting a business is a grand project. If you're serious about it then it immediately, carries purpose.
Commitment Strengthens, that sense of purpose, and ownership, strengthens, commitment. In one neat experiment. Researchers, ran an experiment, that divided the test subjects, into two groups of people for a lottery. Members of one group were randomly, assigned a number for the lottery, while members of the other group got to write down a number of their choice. When the researchers, offered to buy back the lottery tickets, the people who had chosen their own number demanded. On average. Five times as much money for their ticket, even though their choice didn't give them a statistically, higher shot at winning the lottery. That shows the power of ownership. It brings commitment. People who own their own businesses, are committed to it which strengthens, their sense of purpose. Freedom and pride and excitement, and commitment, collide to make meaning, that sense of purpose, of drive, of overwhelming, worth. I think we can agree that a meaningful, life is a desirable, life. The next reason, number 13 is you can innovate. Innovation, drives economies, forward. It propels, the engine of human advancement. Bringing us new technology, and new solutions. Also, it's really, super duper cool. Starting an innovative, business would let you be a part of that. Many entrepreneurs, have sprung into action due to a desire to innovate. Is this whole innovation, thing nothing more than one buzzword, and a pair of dice. Nope. The global entrepreneurship. Monitors, 2013. Global, report found that lots of entrepreneurs, innovate in entirely, new ways. Reason number 14, is you might be able to bootstrap. You don't always need lots of cash on hand to start a business. Some people fear starting a business because they don't have train loads of cash to dump into it, while capital, helps, however. You don't always need a huge investment, to launch a successful, venture. Credit cards loans, and venture capital aren't the only answer. There's bootstrapping. Investopedia. Defines bootstrapping. As follows, a situation, in which an entrepreneur, starts a company with little capital. An individual, is said to be bootstrapping, when he or she attempts to found and build a company from personal, finances, or from the operating, revenues, of the new company. Besides letting you avoid loans and begging, bootstrapping. Gives you independence. It might be harder to start if you're funding your own business, but once you get going you won't be beholden to anyone who gave you money because you provided, all the money needed. Bootstrapping. Constitutes, a reason to start a business because, along with the internet, it lowers the barrier of entry. A lack of money doesn't have to stop you and because you know about bootstrapping. You can think consciously, about how to do it. Moving on to number 15, you could get money for causes you care about. One great reason to start a business is that it could help you get the money that you can use to do good in the world. We live on a globe right with problems, and often a lack of funding causes those problems.
A Successful, business would put you in a place to do something about that. Many entrepreneurs, do this. In 2013. Facebook, founder mark zuckerberg, and his wife priscilla, chan donated, over 970. Million dollars to charity. That same year nike co-founder, phil knight donated, 500, million dollars to oregon health and science, university. A non-profit, hospital. Then there's the gates foundation. Created by bill and melinda gates to address problems in the us and worldwide. Each year, the organization, pours billions of dollars into fighting hiv. Tuberculosis. And malaria. Since its founding, the gates foundation, has granted over 31.6. Billion dollars to charitable, causes. Okay, you might think, that's awesome, but those are big players, these are people who found wild success, and are rolling in the dough. Fair enough. But you don't need to net billions, with a business to use the money for good. A 2010, ernst, young survey of entrepreneurial. Award winners found that 89. Of entrepreneurs, donate money to charity. What's more, 61. Think that they're more likely to give to charity because they're an entrepreneur. And 70. Also donate their time to good causes. Reason number 16. You can consider social entrepreneurship. So far i've talked about reasons that might prompt you to start a more conventional, commercial, business. But that's not the full extent of entrepreneurship. If you embrace the idea of doing good through business but want to focus even more exclusively, on that, then social entrepreneurship. May be right for you. Duke university, professor, jay gregory, these explain, what social entrepreneurship. Tries to do, social entrepreneurs, aim to disrupt, industries, and revolutionize. Processes. Just like any business entrepreneur. But they also more directly, look away from market value and towards social value. The social part means that social entrepreneurs, primarily, aim to improve society. Rather than profit, much like a charity. A new wave of businesses, has invigorated, the social sector with new life, and if that excites you then you might have reason enough to consider, starting this different kind of business. If you want to launch your own social enterprise. Be creative, and think widely. Number 17, to the crowdfund. Is bootstrapping, not going to work for your idea. No problem, another great reason to start a business, is that we live in an age of crowdfunding.
Crowdfunding. Is a relatively, recent innovation, in how businesses, can raise money to get started. It occurs when a large number of people donate to a business project, with each person giving a small amount of money. It happens on websites, like kickstarter. Indiegogo. And artist share. Business founders, create projects. Which include a web page explaining the product idea to visitors, who may choose to become backers by giving money. Most crowdfunding. Campaigns, give rewards to backers, like a copy of the final product once it's made. Instead of relying, on a few big investors. You can go straight to the market and ask mass numbers of people to breathe life into your idea. Crowdfunding, helps businesses, hop over that initial financial, hurdle. For many businesses, it works. Here are a couple of stats for kickstarter. The world's biggest crowdfunding. Platform. More than 74. 800, projects, have received, funding since 2009. And over 1.4. Billion has been pledged across kickstarter, projects. Crowdfunding. Is also a good reason to start a business, because you can choose a crowdfunding. Platform, that fits your needs. While all crowdfunding. Sites share the same core idea, they do differ in certain areas so make sure to compare notes. Reason number 18, you'll experience, new things. Every business owner works through a different set of experiences. And those experiences, are often chances that never would have manifested, had the person been too scared to start their business. I've thrown a lot of data you going on about what academics, have to say why other people start businesses. But there's more than that, because starting a business is personal. Some will grow big and some will stay small. Some will become a new career, and some will remain a side gig. Some will push the boundaries of entrepreneurial. Innovation. And some will quietly do conventional, things in ways that make a difference. To start a business is to enter a maze. You don't know when or how you'll get out on the other end but the quest can be exhilarating. And here are the important bits, you will take different turns, retreats, choices. A different path, than anyone else, even if you're in the same maze. That path will cut through a landscape. Unlike anything you've ever seen before but many of these new experiences. Are awesome opportunities, you never would have had otherwise. Number 19, you can face the challenge. I don't want to make starting a business sound too easy because it isn't.
Many Entrepreneurs, sacrifice, a lot of free time and social time in the early days of their startup. But time isn't the only issue, in a new business. Money is tight, work piles up and plans go wrong. When reading the journal of small business, and enterprise, development, study of established, entrepreneurs, in new york city, i saw an illuminating. One of the business owners interviewed, said. Do your homework. Make sure that you research every aspect of your prospective, investment. Also be ready to put in major effort. You need to make sure you have the will it takes to get the job done correctly, and effectively. And if that means working a 12-hour, day to get something done, there is no way around it. In that study, 43, percent of entrepreneurs, cited long hours as a challenge in starting their business. Starting a business is hard. That's why the study asked successful, business owners what advice they could offer to people thinking about starting a business. The top three things to do are, fully research the business idea first, have passion or commitment, and plan properly. The challenges, of starting a business are not insurmountable. And they can in fact be satisfying, to be. Reason number 20, you won't know if you don't try. Scared of failing. Everyone, is. You might think that you'll never be able to execute, your plans. You might think that nobody will ever buy from you. You might think that if you try to start a business, it will shatter into a million pieces, getting you nowhere. But if we don't at least try to start something, we'll never know if those fears are real or not. The only way to know is to do. Aside from that, it's all just guessing. Starting a business means plunging into, uncertainty. Dozens, perhaps hundreds, of variables, decide whether a new venture will fall flat or climb to the top. You can't control all of those variables. But if you do your best where you do have control. Everything else is more likely to work out, the only way to guarantee, failure, is to do nothing. If you have an idea, for a business, you should get started. There's no better day to launch than yesterday. And here is the last reason, number 21, you can make your own reasons, and your own decisions. Drawing from surveys and academic, research, i've assembled a list of reasons why you should start a business. Perhaps you have reasons why you shouldn't and that's fine. Maybe, as you're watching this video, you drafted your own list, a little street offering 21 reasons against starting a business. Maybe not. Either way is fine because whether or not you start a business is your own decision. You have to weigh the pros and the cons and move from there all while remembering, that you won't know what will happen if you don't dive in. The beauty of entrepreneurship. Is that it lets you seize on the freedom to make your own decisions, and control your own destiny, in a way that conventional, jobs do not. And in making your own decisions. You can make your own reasons. What are your reasons for starting a business. Did any of the ideas click with you, do you have additions of your own. Please let me know in the comments, below. Thanks for watching and if you want to go from the life you have to the life you deserve then make sure to watch the next videos which should show up right about. Now.