Personal Business Objectives

What motivates someone to become an entrepreneur? Is money and personal wealth the only motivation? Evidence suggests that there are many more reasons why someone wants to start a business.Personal Business Objectives Every business starts small; but by taking some calculated risks, doing proper market research and developing a comprehensive business plan, a start-up business can become very large, profitable and valuable.

Not every entrepreneur wants to build a big business and earn a fortune and create an empire. Personal business objectives vary for each individual. Objectives when starting a business can generally be split into two categories:

  1. Financial objectives
  2. Non-financial objectives
  1. Financial objectives

Most business start-ups begin with one main financial objective – to survive and maintain a positive cash flow. Survival is about the business living within its means. To survive, the business needs to have enough cash to pay the debts of the business as they arise – suppliers, wages, rent, etc. To survive, a business needs to have:

  • Sufficient sources of financing
  • A viable business model – i.e. a business plan

For many small business owners, profit is the return for all the hard work and risks taken. Profit is the reward for taking a risk and making an investment. Ideally, the profit earned is sufficient to provide the entrepreneur with enough income to live. However, it is important to appreciate that, to make a sustainable profit, a new business needs to be able to:

  • Add value
  • Sell into a large enough market

Another financial objective is personal wealth. Some entrepreneurs have an objective that goes beyond wanting to earn an adequate income. They aim to build a valuable business that can substantially increase their personal wealth.

  1. Non-financial objectives

Very often a new business is started with other, non-financial objectives in mind.

Here are some of the non-financial motives that are often quoted by entrepreneurs:

  • More control over working life – The need for independence is a major motivator.
  • Need a more flexible and convenient work schedule, including being able to work from or close to home. This motive is an important reason behind the many home-based business start-ups looking for that work-life balance.
  • Utilize skills and that potential is not being fulfilled.
  • A desire to pursue an interest or hobby or passion.
  • Fed up with being told what to do – want to be the boss, see control.
  • Want the feeling of personal satisfaction from building a business.
  • Want a greater share of the rewards from the effort being put in – compared with simply being paid by an employer.
  • As a response to a major life event or other major change in personal circumstances.

Both financial and non-financial objectives need to be understood when choosing whether or not to move forward with a business idea.  Once these objectives are understood and considered, the market research phase and scope of the project will be well defined.

The Halton Small Business Centre has resources and information to help with decision-making and business planning.  For more information about resources, services, business events and seminars, contact us by dialing 311, 1-866-442-5866, online at halton.ca/smallbusiness, by email at smallbusiness@halton.ca.

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