One major thing people fail to decide before starting out is their REASON for starting in the first place. Knowing the kind of business you want to run is important.
The basic reason behind any business venture is to exchange value; providing a solution to a problem and getting value for it.
Value exchange is where it starts from.
Based on the individual’s goals, there are four major categories of business owners and their reason for venturing into business.
Every one of these reasons are valid for starting a business and one does not necessary trump another but of course the expected results from each decision category is different.
Also, many individuals feature in more than one category.
To live better lives: These guys are about the money and profit margins and often times it’s a one-man show; in charge of sales, marketing, delivery etc.
Typical business owners in this category have skills that they develop and then market for money.
Businesses in this category might not necessarily have models/structures.
If the showman goes on a break, the business goes on a break too.
Building for the future: Business owners in this category are concerned about their legacy and build these businesses with their children/ generations in mind.
They build & understand the operations and then teach their children how to run the business when they retire.
To Sell: Systems and structures apply a lot in this category because the idea behind the business is to sell (not goods) but the business itself.
The business owner(s) start off the business to show a proof of concept and then pitch to investors looking to buy the business.
This category of business owners focuses on decentralization and franchising in some cases.
For the idea itself: Here’s to the crazy ones etc.
They have a strong need to change/create something that directly influences the lives of others and creeps into their daily habits.
It’s important to know your why behind your business.
“When you know your why, you get your wings”
Another important thing to note is that your ‘why’ could transcend, the vision could expand and you could build from a CAT 1 to CAT 3/4
WHAT’S YOUR WHY?