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Top 13 Reasons to Start Your Own Business

Reasons to start your own business
(Last Updated On: November 15, 2023)

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Setting up a business is one of the most exciting moments you can experience. If you want to achieve financial freedom one day or build up something great of your own, starting a business is the best way to get there. 

Running a business is something almost everyone desires, but only a few manage to go that far. It’s no secret that starting up an enterprise comes with its risks and challenges, but the pleasure of seeing your enterprise and its value grow is worth it all. 

If you’re hesitant and are looking for motivation to move out of your nine-to-five, here are some of the top 13 reasons to start a business.

Top 13 Reasons to Start a Business

  • Flexible work timings 
  • You can set your own rules
  • Pursue your own passion
  • Higher income
  • Give back to the community
  • Work from anywhere in the world
  • Upgrade your expertise
  • Start from scratch
  • Tax benefits 
  • Not worrying about losing your job
  • You hold the creative freedom
  • Learn from your failures
  • Help create opportunities 

There is no incorrect motivation as to why you should start your own business. Maybe you want to leave your nine-to-five job or you wish to increase your income. Here are the different reasons why you should start your own business.

1. Flexible Work Timings

55% of employees rated work-life balance as being a significant factor in their job satisfaction, according to SHRM. Although flexible timing is a commonly used reason to start a business, it’s not the best. 

In fact, starting your own business takes up more time of your workweek as compared to a nine-to-five. On average, 58% of entrepreneurs say they work odd or long hours. Therefore, it’s important to note that although flexible timings are a huge perk, you will have to give up a lot of time in the early stages of your business.

On the other hand, a staggering 94% of workers, according to Harvard Business Review, said they worked more than 50 hours each week. Even if you work the standard 40 hours per week, it’s equivalent to spending 30% of your total time working for someone else. Therefore, it would be wiser to invest this time in starting your own business than working for someone else. 

2. Set Your Own Rules

Finding the drive to perform your best while you are working for someone else might be challenging. No matter how hard you work, the company’s owners will always reap the benefits.

As of 2022, 47% of people have started their own businesses in order to be their own bosses. Moreover, the most common reason for someone to start their own business is dissatisfaction with corporate America. 

3. Pursue Your Own Passion 

Many company owners launch their own ventures in order to pursue their passions. Working for someone else might not fulfill you the way that pursuing your goals would. In fact, the ability to chase after your dreams is one of the biggest reasons to start a business for many new entrepreneurs. 

Nearly 31% of American company owners launch their ventures in order to follow their passions. Amongst them, the likelihood of Millennials and Gen Z members starting their business because they were enthusiastic about a project is 48% higher.

4. Higher Income

Maybe the income at your present work is not enough for you, or maybe you have a side dream project that has the possibility of developing into a successful business. 

Many people decide to launch a business hoping to achieve financial security. The ultimate aim of being your own boss is fostering financial independence, even if getting your business off the ground might require perseverance towards the beginning.

On average, a small company owner makes $69,593 a year, and a typical CEO earns $156,128 per year in compensation. On the other hand, the typical annual wage increase for a corporation is 3.1%. Therefore, you are not actually making as much money as you believe because that salary increase typically happens at the same time as inflation is rising. 

Despite all this, earning a higher income is one of the main motivations for why individuals start a new business.

5. Give Back to the Community

Each year, new enterprises generate 1.5 million new employees in the United States. Starting a new company gives you the chance to employ and train new people for the job. Additionally, you get to have a significant influence on society, which is all the more reason to start a business.

Building your business for social benefit is one of the most rewarding aspects of becoming an entrepreneur. For example, you can start a company to aid young people fighting difficult circumstances or a firm to help single parents. Everyone benefits when you prioritize doing good rather than maximizing your financial gains.

You can choose to donate your revenues to charitable causes, non-profit organizations, or local initiatives. Alternatively, you may launch your company to pursue your passion and address an issue in your neighborhood or the wider globe.

6. Work from Anywhere in the World

Imagine sitting on a beach while working, with no boring office sounds and interruptions. Now, that’s something one can only imagine if they’re their own boss. Many believe that people start their own businesses due to a gap in the market, however, this is false and makes up only 2% of all businesses. 

One of the biggest reasons to start a business is that it’s run on your terms. There are no work deadlines, no restrictions on coming to the office, and no long hours sitting behind a desk. 

7. Upgrade Your Expertise

You have the opportunity to upgrade your skills in a new domain and challenge yourself to reach new goals when starting a business. Therefore, instead of waiting for someone to hand you a new challenging task, you can create that opportunity for yourself.

The best way to become an expert is to first find something you are passionate about, then invest a good amount of time towards acquiring skills to put that passion into action.

Soon enough, you will become a pro in a new field and possibly other fields as well. This acquisition of a new skill set can help you fuel your future business ventures.

8. Starting From Scratch

Some people are born to build things up from the ground. In fact, nearly two-thirds of all entrepreneurs say they want to start their own business because of their passion to create something. Only 8% of business owners state money as one of the reasons to start a business.

This way, you can offer products and services that satisfy your vision of a quality product. You will not be restricted by the rules and guidelines of corporations that force you to sell products that are not up to your standards. 

Moreover, you decide what the appropriate working hours and pay are for your employees. If you have been dissatisfied with the offers made to you by your company, you can bring change for your employees. 

9. Tax Benefits

Most startups cost around $80,000 per year to operate. The majority of that money is derived from debt and equity. However, running a startup does not always have to result in losses. You can save a substantial amount when it comes to taxes.

The government usually helps new small business owners by providing great tax incentives. The tax deduction will depend on your business structure, where small businesses will benefit the most, and incorporations have to pay the highest amount of taxes.

It would help new entrepreneurs hire an accountant or a financial planner to get a rundown of the cost and reap the maximum benefits they can get through government incentives.

In the US, this is one of the many reasons why people prefer to start a business in a tax-friendly state.

10. Not Worrying About Losing Your Job

One of the best reasons to start your own business is the job security that comes with it. You will no longer have to worry about losing your job should the workplace require restructuring. Not stressing about getting fired for one small mistake will allow you to focus better and help you build your business.

This is not to say that there is 100% job security during the initial years, as only 56% of all startups make it to the 5th year in the market, and the remaining have to shut down.

11. You Hold Creative Freedom

When you start your own business, you will get to choose how to run it, what products you want to sell, who your target consumer is, who you want to hire, and much more. You do not have to do things that don’t fit your vision, and this is often the case when working for someone else.

Even if you decide to pursue building a business that is mainstream, you can add flair to your products by thinking outside the box. After all, creativity and innovation are two things that help a business stand out.

12. Learn From Your Failures

Not all startups are successful, and starting a business is never done with the intention of failing at it. However, not all businesses make the cut when such a situation arises. It should be taken as a learning experience. In fact, 1 in 4 entrepreneurs fail the first time before becoming successful business owners.  

Given that many startups with venture capital backing fail, it’s critical to understand that failure is a necessary element of development when starting a new business.

13. Help Create Opportunities

When there’s a need for a product or service and an increase in the unemployment rate, that is your sign to start your own business. You can use this opportunity as one of the reasons to start a business by creating job opportunities and addressing the market need for a certain product. 

23% of businesses fail due to a lack of skilled workers that understand your vision. Creating an opportunity during a layoff will help you hire people that will aid in growing your business.

Why Should You Start a Business – Conclusion

The above reasons clearly explain why you should start a business of your own. Take the risk and become a CEO of a business you always wanted and start developing your business’s concept. 

Aspiring business owners now have access to a wealth of resources, including finance, technology, and knowledge, that can help kick-start a successful business.

It’s definitely demanding to launch a new company. However, new entrepreneurs will find it worthwhile in the end, for the simple reason that starting your own business is a wonderful way to secure your future. 

About the author

Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.

As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.