Many people have great ideas, but few have what it takes to turn those ideas into successful businesses...
Entrepreneurs are a special breed of people who are driven by a unique combination of factors. For some, the challenge of building something from scratch is incredibly motivating. Others are driven by the desire to be their own boss and create their own destiny. And for many, the chance to make a difference in the world is the biggest motivator of all.
Whatever the driving force may be, entrepreneurs share a passion for taking risks and following their dreams. This single-minded focus is what allows them to overcome the challenges and obstacles that stand in their way. And it is this same determination that motivates them to continue innovating and evolving, even in the face of failure. Simply put, entrepreneurs are motivated by the desire to create something new and make a difference in the world.
In this article, written by the team at Déjà Partners and based on our own collective experience, we list the top three reasons why entrepreneurs want to start their own businesses as well as some of the major obstacles they face in doing so. While we hope it helps you better understand what challenges might be ahead for your new company, we’ll also give you some tips on getting started if you choose to go down this path!
If you’re an entrepreneur, chances are you’ve thought about starting your own business at some point. But what are the top reasons why entrepreneurs want to go into business for themselves? And what are some of the major obstacles they face in doing so?
Top 3 Motivations for Entrepreneurs
Based on our long careers in both the tech industry and venture capital firms, the team at Déjà Partners believes that there are three primary reasons why entrepreneurs want to start their own businesses:
- the challenge of building something from scratch
- the passion to be an entrepreneur and
- the desire to be their own boss
The challenge of building something from scratch is by far the top reason for wanting to start a business with about 50% of founders that we have dealt with over the years expressing this as a reason. In our view, these are the founders that have created the greatest value and whose businesses have been able to attract the best talent.
The other two reasons – the passion to be an entrepreneur and the desire to be their own boss – came in a distant second and third at 30% and 20% respectively. What is notable and surprising, is that the desire to make money simply doesn’t feature as a reason for starting a business by nearly any of the entrepreneurs we have dealt with!
#1: The Challenge of Building Something from Scratch
If your reason for starting a new business is the challenge of building something from scratch to solve an industry problem then you are among the best entrepreneurs. There’s something both exhilarating and daunting about starting with a blank sheet of paper on a new project. On the one hand, you have the opportunity to create something completely unique and original. But on the other hand, you also have the pressure of knowing that everything rests on your shoulders. There are no existing templates or guidelines to follow, which can make it both liberating and overwhelming at the same time.
The key to success when taking on a challenge of this magnitude is to stay focused and organised. Make sure you have a clear vision for what you want to achieve, and then break down the steps you need to take to get there. It’s also important to be realistic about what you can accomplish in the time frame you’re working with; your initial target should always be a Minimum Viable Product that you can get into the hands of early adopters. And finally, don’t be afraid to ask for help when you need it. Building something from scratch is always going to be a team effort, so surround yourself with people who share your vision and who can offer their expertise along the way. With careful planning and lots of hard work, there’s no limit to what you can achieve.
#2: The Passion to be an Entrepreneur
So many people want to be entrepreneurs nowadays. They see the benefits of being your own boss, setting your own hours, and having more control over your life. And while there’s nothing wrong with that, it’s important to make sure that you’re passionate about being an entrepreneur for the right reasons.
Being an entrepreneur is not about instant success, award ceremonies and being featured in media publications. It’s hard work, and it can be very stressful. There will be times when you’ll question whether you made the right decision, and there will be days when you’ll feel like giving up. But if you’re passionate about being an entrepreneur, you’ll find the strength to keep going. You’ll know that the challenges are worth it, because you’re building something that you truly believe in. So if you’re thinking about becoming an entrepreneur, ask yourself this: are you doing it for the right reasons? If so, then go for it! The world needs more people who are passionate about making their dreams a reality.
#3: The Desire to be their Own Boss
While starting your own business and being your own boss is a dream that many people share, the reality is that it is not for everyone. It takes a lot of hard work, dedication, and capital to get a new business off the ground. Additionally, you need to be prepared to handle all of the challenges that come with running a business, from managing people and finances to marketing your products or services. Before taking the plunge into entrepreneurship, be sure to do your research and make sure you have the skills and resources necessary for success.
Top 3 Obstacles for Entrepreneurs
Having explored the top three reasons why entrepreneurs want to start their own businesses, let’s now turn our attention to the three major obstacles they can face in doing so:
- Financing
- Knowing where to begin
- Fear of failure
Financing a new business is by far the top obstacle that entrepreneurs face when thinking about starting a company with about 50% of founders that we have dealt with over the years expressing this as their primary challenge. A secondary obstacle shared by about 30% of founders is just not knowing where to begin when it comes to incorporating a business and commencing operations. Finally about 20% of entrepreneurs have spoken about their fear of failure and putting everything on the line in pursuit of a new venture.
One of the most important aspects of starting a new business is making sure that you have the financial resources in place to get the venture off the ground. There are a number of ways to finance a new business, and the best option for you will depend on a variety of factors, including the type of business you are hoping to start, the amount of money you need to raise, and your personal financial situation. Some common options for financing a new business include personal savings, friends & family, grants, taking out a loan, or raising money from institutional investors. If you are starting a small business with limited startup costs, you may be able to finance the venture yourself. However, if you are hoping to launch a more expensive business or one that requires significant upfront investment, you will most likely need to seek external sources of funding.
Starting a new business can be an exciting but daunting prospect. There are so many things to think about and organise, and it can be difficult to know where to begin if you have no prior experience of this. One of the most important things to do is to make sure that you have a clear understanding of your business goals. What are you hoping to achieve? Who is your target market? Once you have a good idea of your goals, you can start to put together a plan of how to achieve them. This might involve carrying out market research, developing a go-to-market strategy, and planning your finances. Once you have a plan in place, you can start to take the necessary steps to make your business a reality. Of course, there will always be unexpected challenges along the way, but if you take the time to plan and prepare, you increase your chances of success.
Finally, anyone who has ever considered starting their own business knows that it is not a decision to be made lightly. There are a multitude of factors to consider, from the initial start-up costs to the long-term sustainability of the business. However, one of the most common concerns among entrepreneurs is the fear of failure. While it is understandable to be cautious when venturing into unknown territory, the truth is that failure is a natural part of any business journey. In fact, some of the most successful businesses have been founded by entrepreneurs who have faced and overcome failure in their previous ventures. The key is to view failure not as an endpoint, but as a learning experience that can provide valuable insights for future success.
How We Help Entrepreneurs
At Déjà Partners, we’re passionate about helping the best entrepreneurs and early stage companies succeed. We can work closely with you on a pro bono basis (at no cost) by providing mentorship, guidance and support in order to get your new business started and be ready to rise to the challenge of building that ‘special’ something from scratch. We can then help you prepare for a successful fundraising with institutional investors. And over the longer-term, we are here to help navigate the challenges of scaling your business in order to create value and achieve your goals. Given our long careers in building businesses – “been there, done that” – we can definitely help you mitigate against the prospect of failure so that you can approach your business journey with growing confidence and optimism.
Thank you for reading! And remember, don’t be afraid to take the plunge and start your own business. Your fear of failure might just lead to your biggest success yet!!
Contact us today to learn more about how we can help.