There are many reasons why people decide to set up their own business organizations. Some people do it only for money to maximize earnings while others want to support the society. Some entrepreneurs have ambitions to create world’s biggest companies and generate large amounts of sales while others want to establish business organizations to serve smaller local communities. Those reasons are all OK!
In such a large society as the modern world, there are usually three different groups of people who set up new businesses.
The first group includes the people who have already had experience with establishing a business on their own because they did it in the past.
The second group includes those who are in the process of starting up their first business and have no experience in being entrepreneurs.
And, the third group of people includes all of those who are considering in setting up their own company in the future, but have not done anything about it yet.
No matter, if your goal for setting up a new business is to finally become your own boss because you are fed up with being told what to do at your current job, or you are just blindly trying to follow your passions, owning your own business organization can be a life-changing experience.
Businesses are usually established by their owners for one of the following reasons: growth, increasing earnings, inheritance, independence, satisfaction, control, influence or challenge.
What drove me personally to start Super Business Manager is the desire for this website to be:
1. A hub where I can bring together in one place all of my lifetime activities and experiences in: business management, business consulting, business education, business journalism, business publishing and personal finance. These areas are my core competencies.
2. An economic engine to realize strategic goals of my family in the long-term perspective.
Let’s now take a look in details why people become entrepreneurs and reasons for starting up new businesses.
Reason for starting a new business: Growth
Your own business venture is a great way to accumulate personal wealth. Because you invest your own money into a new project as well as your free time, you hope that your business will grow in value over time and your efforts will not be wasted.
Famous entrepreneurs such as Donald Trump and his children, who own their own businesses under the Trump Organization, benefit personally when there is an appreciation in the value of their Fixed Assets, such as property and land which become more valuable over time. Donald Trump with his family own holiday resorts, golf courses around the world, office buildings and apartments in downtown New York. This is called capital growth. It is very common for the capital growth of a business to be worth more than the amount of the owners’ salaries. Another example is Bill Gates, the one of world’s richest people, has made his millions from the capital growth of Microsoft, the biggest software-producer in the world, or Richard Branson, the founder of the Virgin Group, one of the biggest parenting company in the world owning over 400 brands mainly in the travel, telecommunications, health, banking, music and leisure industries.
In the next couple of years, I hope to benefit personally from capital growth as this website is expected to have higher value than the price I pay annually for server space and the domain name, as well as cost of my labor writing and editing all the business resources that I publish. Initially, I plan to develop Super Business Manager for the next 5-10 years. After that time, I will either keep the website for myself or give it away to my children, or put it on the market for sale for no less than USD$1,000,000.
Reason for starting a new business: Earnings
Owners of successful businesses tend to earn much more, or even get very rich, than working for someone else. There is a popular saying that ‘You can never get rich earning money from working for someone else’. It tends to be true because the potential returns from setting up your own business can easily outweigh the costs, even though the risks entrepreneurs take are very high. Entrepreneurs aim at earning far more in excess of full-time salaries from any other occupation that they might otherwise pursue.
I hope that revenues from selling my own products such as ebooks on different business management topics and business-related services (such as building business websites and writing business articles) as well as revenues from advertising for this website should outweigh the costs. I give it a few years to first introduce Super Business Manager to the market and then grow it globally. I am not really in the hurry to grow my website aggressively. However, starting from 2025, I hope to earn regularly in passive income between USD$3,000-4,000 per month from this website. It means that this new revenue stream should generate around USD$36,000-48,000 annually in additional income to start with.
With the increased earnings, my family can increase living standard and then we increase quality of life. As an entrepreneur, any rewards will belong to me. But, if anything goes wrong and I am not able to generate forecasted earnings, the losses of my free time and the capital invested in this online project (mainly paying for the server and the domain name) will be mine to take.
Reason for starting a new business: Diversification
As you see, I am becoming an entrepreneur because I want to develop a new revenue stream of passive income for my family in addition to my full-time job and my wife’s job plus earnings from our other investments. So, starting my own business project, is also a sort of income diversification as we will not have to financially rely on working for someone else any longer. If my business blog becomes successful in the next few years, my family’s finance can grow exponentially by having more sources of income instead of just two full-time jobs.
Reason for starting a new business: Transference and inheritance
In many societies, it is the cultural norm to pass on assets, including businesses, to the next generation. Jan Kulczyk, the richest man in Poland and the former owner of Kulczyk Investments who conducted business activities in several industries such as oil and gas, infrastructure, power generations, trading, energy and real estate, passed down his business to his two children a few years before unfortunately passing away. With passing on businesses (transference) to their children (inheritance), many successful self-made entrepreneurs give the next generations a sense of security that might not be possible, if they chose to work for someone else and then retire with modest retirement fund.
I will be more than happy, if my children (currently I only have one child) get involved in business management and business education in the future to take over my job at developing Super Business Manager. Passing this kind of legacy to the next generation, so they can work on it making it even better, will give me an amazing feeling of satisfaction. It can also give my children a sense of security when it comes to future jobs as they become Editors-in-chief of this business blog.
In addition to inheritance, I also want to leave valuable instructions for all my family members how to manage their lives regarding finance, what life decisions are worth making and what wrong decisions they should avoid, in case anything happens to me and I am no longer able to provide for my family. For example, in my opinion, it is better to grow internally through developing own resources and capabilities instead of externally by making wrong partnerships or borrowing too much money from a bank. It will be awesomely rewarding to look back at my project in a few decades from now, and know that my creations helped my closest people to live better lives.
Reason for starting a new business: Challenge
Some people might view setting up and running a business as a challenge. It is this challenge that drives people to perform better, and what gives them personal satisfaction and fulfillment. Being successful in business and making a lot of money incredibly boosts self-esteem. This is perhaps one of the reasons why billionaires such as famous investors Warren Buffet and his business partner Charlie Munger (both still working being over 90-years-old) or one of Asia’s most influential businessman Li Ka-shing continue working despite being past the official retirement age.
I am finally able to put all of my theoretical knowledge into practice and challenge myself on the marketplace. Publishing online, keeping my current readers satisfied and finding new readers to grow my audience, give me a lot of happiness. It is a thrilling feeling to be able to set up and run a business organization. If Super Business Manager becomes recognizable brand around the whole world, my self-esteem will definitely be boosted.
Reason for starting a new business: Autonomy
Working for someone else means exactly that employees have to follow the precise instructions and company rules set by the organization that they work for. These rules will include the conditions of employment (doing particular tasks), working hours (usually spending 8 hours a day in the office), benefits (a certain amount of annual bonus) and holiday entitlement (usually between 1-4 weeks). On another hand, being self-employed means that you have more autonomy (independence, freedom of choice and flexibility) in how things are done within your own business organization as you are your own boss and make all the decisions by yourself.
My family’s strategic goal is to be fully independent financially, so both me and my wife can work from anywhere in the world, and we are not necessarily tied to one location. In this way, we can have more control of what we do on daily basis compared to working 9 to 5 for someone else. It will be absolutely great to have more flexible working hours and better balance between work life and social life. We can also choose where to live as a family. Neither we have to worry about being made redundant or dismissed.
Reason for starting a new business: Security
There is usually more job security for someone who is their own boss. It is because employees can be dismissed, made redundant (if their job is no longer needed due to lower demand), or even replaced by technology (e.g. robots instead of bank clerks, etc.). Although the risks are greater for entrepreneurs, being self-employed also makes it potentially easier to accumulate higher personal wealth to gain financial security, or provide higher funds for future retirement.
Reason for starting a new business: Influence
I aim to influence business decisions globally – help businesses around the world to become better-managed. For example, by teaching how to implement business tools, theories and techniques into a business organization, I provide framework for managers, directors and CEOs how to run a successful company. I often discuss how real-life companies and their managers use business knowledge and skills to make business decisions. For example, I evaluate whether it a good decision or not for Starbucks to develop its Product Portfolio in China, or I use The SWOT Analysis to analyze chances of commercial success for a new convenience store in one of the residential communities in Malaysia.
Giving back to the society by writing about personal finance to help increase quality of life of millions of people in different countries is a social reason for my activity. I want to balance the commercial side of this project because I believe that balance is good for us as human being. I look forward to helping people with making better life decisions by applying business practices, so we can struggle less and become better thanks to more effective life management. For example, I help you to decide whether you should move to another country for work by using an organizational planning tool called The Force Field Analysis.
Reason for starting a new business: Hobbies
Some people might want to pursue their passion or to turn their hobby into a business. Successful entrepreneurs have a passion for what they do and this is made easier if the nature of the work is directly related to their interests.
I personally think that Super Business Manager is a great way for me to explore new growth opportunities in many different areas of business education. I can challenge myself with inventing new area of knowledge which is life management. Reading business books and magazines along with improving quality of life are listed as one of my hobbies.
Many famous people such as J.K. Rowling, the author of Harry Potter, or Mark Zuckerberg, the co-founded of Facebook, became the world’s youngest billionaires when they were in their 20s.
It is much easier to be a successful entrepreneur when you have passion to what you do, and if the nature of your daily tasks is directly related to you interests. As I teach business management on daily basis, by developing Super Business Manager, I can increase my brand recognition globally as an academician who lectures on business. This website can also bring some intangible benefits as it opens new doors for me when it comes to gaining access to new knowledge, people and business projects.
Starting up a new business is both challenging and demanding. But I believe that at the end of the day, it will be worth it for anyone getting into entrepreneurship. Because owning your own business project or enterprise is a cool way to control your own destiny on your own terms.
