There are various reasons why people start their business. A business is an alternative to a salaried job or professional self employment. Each business is based on one factor that established it. This factor drives the business into its vision. The four factors that drive an entrepreneur to start a business are pain, passion, power and profits.
Pain is a very strong emotion, equally as strong as passion. There are various ways that pain can drive an entrepreneur into starting a business.
- The pain of not meeting the basics. When an entrepreneur finds out that he is not able to meet his basic need, then he is compelled to look for a venture so that he can earn for himself and the family. There are a lot of people who have started their business this way. It is actually a business started out of personal necessity.
- An entrepreneur that is currently facing pain whether directly or indirectly can be moved by the emotion into starting a business. A good example is a kidney patient that is struggling with delayed dialysis service in public hospital, deciding to establish a dialysis center to provide affordable and accessible dialysis services. His motive to start the business is driven by the need to solve his own pain.
- A painful experience can drive an entrepreneur into starting a business. An entrepreneur who sells solar panels in rural areas might have been driven by the pain of being brought up in a rural area without electricity. This drive is a very strong emotion that will fuel the entrepreneur and eventually the enterprise.
- Lack of options – With very high rate of unemployment currently, a lot of people cannot find jobs. Therefore they identity and organize their resources into a business venture. This is very common. People baking cakes at home, mothers selling products online, farmers, mechanics at the backyard and so on. Any time you lack options, a business will be a fairly good option.
A business based on pain can be a very aggressive business. However, the emotional part of the business can easily outlay the business basics. It’s always professional to mark out the pain and the profits. Let the pain be just the drive to start but not the drive to run and grow the business. Though most of these businesses start without much of options, it is worthwhile to ensure that the business is run professionally without compromising its fundamentals..
Advantage of a pain-based business is the fact that the entrepreneur is solving a problem within himself and in the process he solves the problem on others.
The disadvantage is that pain as an emotion can be overwhelming in the business hence affecting the business basics and fundamentals.
A lot of people start businesses based on their passion. When you start a business from your passion and interest, there is a high chance that you will succeed.
Passion, if integrated within the business not only makes money for the entrepreneur but also creates a livelihood and a way of life. When this happens, then this can have a very deep satisfaction to the entrepreneur. These businesses provide a good mix of work and play.
The advantage of the passion-based business is that the business is driven on a very strong vision and dream. The business is the livelihood of the owner and he can do anything to ensure that it succeeds.
The disadvantage is that the business is more of a one-man show. It takes more of the self employment business model. Meaning that the business cannot survive without the owner. This however can be mitigated if the owner learns to delegate.
A profit-driven entrepreneur will always get in a business to make money. He will venture into businesses that are highly profitable and will not hesitate to shut down a business if its not making money for him. His drive to make profits is so strong that he will push the business to deliver hence building the business into an empire.
The advantage of a profit driven business is that it is founded on real business foundation. The aim of the business is to make money. And this can make it grow tremendously and have a long lasting time span.
The disadvantage is that the business is only a business if it makes money. The other social and environmental factors are very minor elements. Due to stringent overhead policies, the businesses might seem stingy and unpopular for employees.
A few business people start businesses to be able to influence. An entrepreneur who is interested in controlling a product, process or sector can be driven to establish a business that will monopolize and make him popular.
The advantage of such business is that it can make super normal profits once it monopolizes the market.
The disadvantage is that the entrepreneur might focus more on power and influence to the level that he forget about the business fundamentals.
These are businesses that are fueled by people. They rely on the mob and the numbers. The more people the businesses interact with, the better they become. Artists and celebrities’ businesses are based on power and popularity. They usually measure their business acumen based on their fan base.
The advantage of a people-based business is the fact that the business can easily catapult if the entrepreneur is good at what she does. These are businesses that build millionaires overnight.
The disadvantage of such business is that they are seasonal and therefore they can easily dissolve.
Why start an online business
An offline business is different from an online business. But the reason why you should start and online business is no different with what we have discussed above. Single mothers have started home-based businesses to earn an income. Entrepreneurs have established online businesses to make money, to quench their passion or to influence.
Regardless of your reasons, just remember that an online business can be very satisfactory, can earn a lot of money and also create massive influence for you. You all need to know how to do it. Gone is the myth that if you want to make a lot of money or build a big business empire, then you have to have a physical business. Lots of people are currently making millions and billions of money online; without a single physical inventory or an office. So sit back, research and your will get the best online business model for you.