Thursday, 11 September 2014

Top 10 Benefits of Start-up Business

Starting a small business in Kenya
In a bid to attain financial freedom, most people today are facing the dilemma of quitting their day jobs to start small businesses. While the option of starting small business is beneficial, there are innumerable risks associated with it. 
In this article, I have assembled the top 10 benefits of a start-up businesses.


  
       1.      You become your own boss
A start up business will enable you become your own boss. Today, most employees stick to their jobs and spend less money than what they earn. They then use the difference between their pay and expenses for long-term investments.

While corporate life is comfortable, self-employment is better. This is because start-up business enables you to manage your time and resources according to your own priorities. Are you tired of your boss? Do you hate your job? Then start-up business is the way to go for you.

       2.      You get to do what interests you
Furthermore, starting a small business can assist people follow their own passions. While entrepreneurs spend long hours investing in expanding their jobs, it is more of fun than a job. Supporting and promoting our own passion yields satisfaction.  

Believe you me, most people are stuck with their current day-jobs because they have expenses to meet! They are held up by repayment of loans and mortgages, rent and such other expenses. A friend of mine tells me that if he had a choice, he would choose to run his own business. He claims that the sole reason he is in a day-job is that he has no capital to venture into start-up business.

Starting a small business venture is exhilarating and provides a reasonable route towards modest wealth. Start-up business gives you a chance to do what excites you. You pursue your own interests and goals, not executing an organization’s strategic plan! Unfortunately, most people are skeptical of start-up businesses due to the risks involved.

      3.      You make your own decisions
Most small business entrepreneurs are ‘Type-A’ personalities. Such people like taking control and making decisions with the intent of controlling their own destiny. Owning a small business spares people to stress of working for other people. They are able to direct their own organizational culture. Unlike ‘Type-B’ personalities who are risk averse, ‘Type-A’ personalities will commit their financial resources in riskier ventures.

However, running a small business is overwhelming without proper delegation. Additionally, starting a small business is associated with flexibility arising with setting own working hours, working from anywhere or working seated next to a pet. Unlike in day jobs, small businesses owners make their own schedules. 
      4.      You choose who to work with
Ordinarily, in day jobs, employees have no say as to whom they work with. People are compelled to work with different co-workers unlike in own businesses where one can make hiring and firing decisions. This is essential as it helps one surround themselves with constructive people that inculcate optimism and confidence. A business owner is in a position to weed out people with negative vibes. The power to hire and fire is your prerogative as an entrepreneur!

    5.  You will become even more creative
Owning a small business can be a perilous proposition. However, risk breeds rewards. Management of risk thus becomes central in harvesting more rewards from small businesses. Day jobs are characterized by monotonous routine. This kills dexterity and growth in business. Becoming an entrepreneur will enable you to express yourself freely. It assists you develop a concept in the best way possible.

Entrepreneurs face new challenges every day forcing them to become creative as well as learn something completely new. Again, in small businesses, there is no red tape. Entrepreneurs respond quicker than in corporations. In small business, an entrepreneur can interact with customers by dealing with them on a one-on-one basis.

       6.      You will be able to help the community
After starting a small business, it becomes easy to help the community through donation to charities and creation of jobs. It is indisputable that building something they own makes entrepreneurs take pride in their work through immense self-actualization benefits.

Starting a small business instills a sense of responsibility and creates more opportunities. While most of such small businesses do not pay like day jobs and bigger corporate, there exists some incentive-based system premised on seized opportunities and skills and not dollars. The experience obtained outweighs the reduction in pay. This experience can be used in assisting local communities. In the more structured corporate world, employees are stuck with main responsibilities unlike small business entrepreneurs who can try a lot more things.

Furthermore, people opening their small businesses possess a dissimilar professional and mental make-up compared to those in day jobs. Their innovative nature enable them find solutions constantly and solve problems differently. Innovation through solving problems through diverse avenues is better compared to creativity. Noticing failures and successes is a little easier.

      7.      You will become more frugal
Small business startups enable entrepreneurs become more frugal. Monetary responsibility and frugality breeds fulfillment. Moreover, the values of self-sustainability, ownership and hard work are inculcated in small business owners. Liberty and personal ownership instills pride.

Taking risks are creating innovative solutions requires ability and hard work. This is because the entrepreneur is responsible for his/her own success. This is an immense and beneficial source of motivation as opposed to day jobs when people anticipate monthly paychecks in spite of their work conditions. Entrepreneurship enhances self-sustainability. 
A start-up requires money. This means there will be no frills, no extravagance, no booze (tear jerking and disgusting, I know).

      8.      You will attain financial health
People promote small businesses without mentioning the challenges associated with them. It is imperative to note that while starting a small business may be better compared to working in a day job, there are risks. People start small businesses with hope and optimism. However, without an elaborate plan and exit strategy, this is not a cup of coffee! 

Financial health is central in running small businesses. Towards this end, the daily operating and tactical decisions affect the business’ financial statements. Without proper financial management, such small businesses collapse and become insolvent rendering the entrepreneur both jobless and devastated. There are innumerable success stories for start-up business.
      

    9.      You will gain more skills
Operating small businesses doing specialized work and executing specialized work are dissimilar. Carrying out specialized work involves particular knowledge and skills. Thus, running a small start-up business and executing specialized work are not the same. 

Getting government loans, assistance programs and bank loans is equally difficult. To obtain them, business plans, collateral, equity requirements, cash flow and profit projections are required. Starting a small business calls for money, time and effort. Human relations, communication and negotiation skills are essential in running small start-up businesses. 

      10.  You will learn the value of self-sustainability, ownership and hard work
Obviously, the best benefit of working in a start-up business is the realization that tenacity, self-sustainability and hard work are worth a bunch! Once you create something tangible, you begin understanding and appreciating personal ownership. The liberty to create something new creates a sense of ownership. Taking risks and creation of innovative solutions yield personal fulfillment.

However, the six million-dollar question is always – where do I get capital to establish my own start-up business? Ask Wilson Kageni, a founding partner of AllenHark Group, Kenya and many other businesspeople and venture capitalists like Heshan de Silva. The answer is always the same – getting capital is a tall order but it can be done. 

In case you have any questions, suggestions or feedback, feel free to e-mail me through mkpaul2015@gmail.com. 
 You can also find me on Linkedin and twitter at paulkimani97.
 
Cheers!


No comments: