Aidi - Should Money be the Motivating Factor Behind Starting up a Business?
In today’s world, the role of money in entrepreneurship cannot be overrated. When you want to start a business, one of the things you should think of is if you have enough capital to start, and of course, you would project how much revenue you are likely to be generating from that capital if your plans fall through which begs the question; should that all of why you want to start a business? In this article, we would explore the different sides to this topic, the need to make financial consideration and the need to make sure that is not the consideration you are making as there are other factors that should motivate you for success and the sustainability of your business.
The Factors that Contribute to a Sustainable Business
The factors that makes for success and sustainability in a business includes, but are not limited to;
- Financial Stability and Security
In business, money is a fundamental need. The aim of investing capital in a business for entrepreneurs is mostly to secure their financial future, to also ensure the stability of their business and personal well-being. When you start a business, it is an opportunity to create wealth which leaves you the chance to achieve your financial and personal goals.
Some other business owners would argue that the need to drive innovation and their passion for the art led them to start a business which is true. Most entrepreneurs started out from a genuine interest in their field and the need to create a solution to a challenge by innovation, these class of entrepreneurs end up creating a solution that a lot of people can benefit from, endure setbacks and ultimately contribute to their niche market.
When an entrepreneur has the long-term sustainability of the business at heart, money won’t be the only thing on your mind. There are certain businesses that don’t last long enough on the grid because the entrepreneurs in charge don’t have the needed vision, value creation grit, and consumer-centric drive needed to make it lasting, all they think about is short term profitability. Entrepreneurs like these lacks the financial discipline to not squander the revenue they generate.
- Risk Tolerance and Resilience
The early stage of a business can be a myriad of risks to be taken, and characterized by uncertain outcomes and returns for the longest time. In view of this reality, the thoughts of financial gains that would delay may not be enough to sustain motivation. With a more sustainable purpose for establishing the business, you are guaranteed the opportunity to build resilience through uncertain business times.
Are there Potential Disadvantages to Starting a Business only for the Money?
Yes. It is important to measure your growth as a company with profitability in view but if that is all you focus on, you can experience a number of drawbacks;
- Short-Term Decision-Making
When you start a business with the sole purpose of gaining financially, you would only go for short-term decisions that would speed up profitability for your business and may not guarantee long-term sustainability.
- Lack of Passion and Commitment
When an entrepreneur is only motivated by money, he wouldn’t have the needed commitment and passion to go through challenges that are common with the operations of an early stage business. Where there is no passion for the job, it would be tougher to stay afloat during challenging phases.
When all of the focus in the business is on profit, it would be difficult to want to invest in a new idea or drive innovation because the whole process before the idea finally breaks into the market can seem daunting, time wasting and money consuming. As a result, the business may not be able to adapt to changing market needs.
In conclusion, even though money is a great tool to motivate an entrepreneur, the balance in the role of money in entrepreneurship would be considering the benefits it provides within a much broader context, which means all the factors from finance to passion, resilience, long-term vision and innovation should be taken into consideration.