What stops you from starting your own business?

[adrianh]

Totally derailing the thread Adrian ... but worth it. Thanks for that post.

Haven't you essentially done the entrepreneurial "thing"? Set up the business, empowered the staff, delegated most tasks and moved on to the next job. I think its brilliant. Now why aren't more of us doing that?

I think that I realized that I am working myself to death for their benefit not mine. I was always the one working till 10pm trying to meet deadlines and spending my weekends at work while they take their paycheck, go home at 5pm to ther own lives. I just thought 'Stuff-it, why do I stress about their salaries....thats their job'.

I think that the business model is good. They have the knowledge, tools, sales channels and all the support in the world, all that they need to do is to 'do what they're paid to do in the first place' It's as if I found a magic button to make them care about their own productivity.

@BUSFACT I think that most businesses have similar business models and that turnkey solutions could -no, should, be applied. I think that if one were to cut through the crap and get right down to it then most small business management could be outsourced. I think that the reason small businesses avoid outsourcing this function is because most small businesess rely on a huge fudge factor. They have to rob Peter to pay Paul, they make many mistakes and have to try to recover from bad descisions while still trying to stay alive. If you could develop a system that is able to do creative accounting and tell white lies then you might be on to something.

[BusFact]

@BUSFACT I think that most businesses have similar business models and that turnkey solutions could -no, should, be applied. I think that if one were to cut through the crap and get right down to it then most small business management could be outsourced. I think that the reason small businesses avoid outsourcing this function is because most small businesess rely on a huge fudge factor.

Now you are aligning very closely to my view on the matter. I'm also wondering why the whole chore of running a business isn't outsourced. The fudge factor wasn't something I'd thought of before, but you most probably have a point. My guess is people like to control and micro manage their babies (business). They also want to give special service and the personal touch. None of them however seem like deal breakers.

[Blurock]

It's not that simple. You have to keep a close eye because quality can suffer if they are totally left to their own devices.

That is why you measure output, not input. I don't give a shit if my sales team lies on the beach all day, as long as they achieve and exceed their targets.
The output of the production team is checked by the quality manager who has to take the brunt if anything goes wrong.

I remember when I was still working for a boss, how upset I was when the boss suddenly interrupted work to have a meeting about some nonsensical shit. Also in a corporate world one bright spark will get the idea that everyone has to wear blue caps or some other crazy idea. Most workers did not support it, but company policy prevails... I can mention many de-motivators emanating from management and causing a negative vibe. Management should coach, guide and check, not micromanage to the extent that they almost do the work themselves.

See that you have good systems in place and the business will work by itself.

[wynn]

small businesess rely on a huge fudge factor.

I always say the difference between an accountant and a salesman and now I believe a Solopreneur is that;

An accountant sees a spreadsheet as a white page with a black line down the middle, income on the left, expenses on the right?

A salesman/solopreneur sees a spreadsheet as a thin white line down the left and a thin white line down the right with the entire rest of the page in varying shades of grey.

;-)

[HR Solutions]

I think that being scared of taking risks is also a big factor in starting your own business and the simple fact that if you are not prepared to get out there and make it happen for your self, your family and providing employment for people is a big factor. A lot of people also do not have management skills or business skills to start their own business. There is also a big difference from starting your own business and just ticking over or taking the next step to take the risk and grow.
Something that a lot of people do not do with a small business is pay them selves a monthly salary. They just draw from the company account for themselves when they need it. It is important to actually pay yourself properly every month. If you can't draw a salary you are not making money.

[adrianh]

To get back to the question of starting multiple businesses. It comes down to having the business model & right people.

I can think of at least 3 different business ideas that could scale exponentially. I am willing to put my pecker on a block that they will work if the right people drove the ideas. The problem is that 99% of people either want to be an employee that gets a paycheck or they want to be the boss. A mere handful of people are willing to work hand in hand to build a new business. Their view is that if they are the employee then they don't really care and if they are the boss then they want to do it their way. Let's take one of my ideas. I would need to spend R30K on gear and have 2 talented people at hand. The one would be a photographer and the other a photo retoucher. I could very easily send them into the wild to make lots of money. The idea is such that it opens itself up to being franchised very easily and the franchise chain would not only take photographs but lots more. The problem is that those people are 99% "FU.. I do what I want types" and I don't need that. I need people who are self motivated and driven to succeed. I can give them the administrative support and even supply them with the appropriate hardware but they have to make the calls and make the money. The more I think about it the more sense the business model makes. I am happy to enable people to grow and thrive provided that they treat me as a mentor / advisor / majority share holder. Hell, they can even get to buy the company that they build off me....I'm not going to live forever.

So, Why don't people start small businesses...and why do so many of them fail. Mostly because they don't understand the fundamentals of business. I am not talking about marketing etc. but rather about hard numbers. A business can only succeed once the owner is able to do the math on the fly. It's taken me years to get to understand these things and the problem is that textbooks don't teach you how to think about business. Yes, textbooks give you the formulae but your experience and the insights of a mentor are much more important than any textbook. Learning to do business is no different to learning to play golf, you can read as many books as you want but unless you get a coach and spend a lot of time learning from him and practicing what you learn you simply are not going to get anywhere. There is no magic bullet, people who want to start businesses should latch on to mentors and follow their advice. If it wasn't for my brother and his mentorship my family and I would have been up the creek long ago. His mentorship has enabled me to build a viable thriving business and I could not have done it any other way.

[adrianh]

I always say the difference between an accountant and a salesman and now I believe a Solopreneur is that;

An accountant sees a spreadsheet as a white page with a black line down the middle, income on the left, expenses on the right?

A salesman/solopreneur sees a spreadsheet as a thin white line down the left and a thin white line down the right with the entire rest of the page in varying shades of grey.

;-)

There is a lot of truth in this...

[BusFact]

I am willing to put my pecker on a block that they will work if the right people drove the ideas.

If it needs "the right people", isn't it reasonable for these people to expect fat pay checks or majority shareholding? Isn't it the "driving" that requires all the time, energy and effort?

Aren't there a whack load of ideas out there that don't need the right people, but instead will do ok with reasonable people?

I need people who are self motivated and driven to succeed.

A tall order IMO. Most people like this are climbing the corporate ladder or already out on their own.

[Blurock]

If it needs "the right people", isn't it reasonable for these people to expect fat pay checks or majority shareholding? Isn't it the "driving" that requires all the time, energy and effort?

Aren't there a whack load of ideas out there that don't need the right people, but instead will do ok with reasonable people?

A tall order IMO. Most people like this are climbing the corporate ladder or already out on their own.

I would say the"right people" would be people that have a passion for what they are doing. People who believe in their abilities and who are patient enough to first invest before starting to reap the profits. We were fortunate to get exactly those people in our little business. For more than a year not one of us earned a salary and we almost bankrupted ourselves to get the business off the ground. Working nights and weekends eventually got us there and I am proud to say that we are now at the forefront of technology in our industry.

We still have a long way to go as we are competing with large international companies, but the quality of our products and the passion of our people are putting us in a very competitive position.
This would not have happened if we just employed managers to run the business. Owner involvement is what is driving the passion.

[wynn]

I know I carry on a bit beating Peter Carruthers drum, except for a few eccentricities he presents a very good, well researched and personally experienced format for a start up business, if you are wondering why most people don't start a business or another business he gives some very good and pertinent reasons in the following course which is free so just have a listen and look, it will answer a lot of questions.

A lot of examples of what he says are the 'pitfalls' of starting a business are more than likely the reasons most people don't go there because they, other family or people they know have all been there and fallen in.

http://www.academyofsmall.business/business-startup-videos-notes/?inf_contact_key=eea6ea27ae80478ec212b069801820eb78a87e7fb8045abedfe096e653a9ce29

[enos]

Passion. Not many people have passion for business,risks and real life challenges. Hence most only keep the idea in their heads. Those that chase the dream, arent starting because of the barriers to entry. We can start small but if knows u,they won't do business with you. Even be the taste of the cake. This is just my view as I'm one of those that what to start a business.

I have registered all and all. Now I'm marketing. But a business that is not generating anything is not a business.

[AdriaanNel]

South Africa really needs entrepreneurs! I have started my own business https://www.invoicesonline.co.za, and although it's a lot of work and comes with lots of ups & downs it is definitely worth it. We believe in entrepreneurship, which is why we have a large free package - to help new businesses get off the ground without incurring any additional costs.

If you have an idea and passion go after it, live your dream! Just start somewhere, you'll soon either see that it's not for you, or your passion will grow and you'll make a success of it!

[HR Solutions]

I also do think that a lot of entrepreneurs depend on business coming to them via "marketing" etc. I firmly believe in telesales. You have to get out there and make it happen - our girls HAVE to spend between 8.30 am to 10.30 am every morning doing telesales. They have to know what they are talking about and definitely must not have a pitch that sounds like it is being read. If we relied on clients contacting us purely from marketing we would not be around. We have our stats at the end of the week and know what percentage must come from telesales and then can see what they might be doing wrong.

[BusFact]

I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?

Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?

So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?

I look forward to some of your insights.

Quoting the OP above for convenience. Thanks all for your input. So far the one reason brought up, that I hadn't really considered before was the one about the passion and drive required to run a business. Now this is generally true, especially if your business becomes your livelihood. Its most likely also a requirement for a business to thrive.

However, are there not plenty of business ideas that can be run on the side? Ones that don't require full time involvement and extreme passion? Perhaps the impression that an entrepreneur is some kind of special animal might be putting potential business owners off. Not every business needs to be wildly successful. Some may only generate beer money, others may generate a 13th annual cheque. If the time, money and effort spent on these businesses is minimal, then surely more people should run with this.

Where is my thinking lacking?

Surprisingly the common reason of not enough capital was only mentioned twice.

[HR Solutions]

Bus fact - If you don't have passion, the business will not do well, whether it is part time of full time. Yes an entrepreneur is a "special animal" - it is not for every one and I think that a lot of people will agree that it is very difficult and sometimes have thought that it would be a whole lot easier working for a boss.

You mention capital - Capital should not be a reason not to start a business. A lot of people started with nothing a built up or you can get a business loan