Top 5 Reasons for Starting a Business

Quick Insight

Almost a third of people quitting their jobs since the pandemic are starting businesses. Why? Four of the top five reasons focus on purpose and one is primarily profit. Even if you focus on purpose, you need to run the profit numbers.

It’s called the Great Resignation. Massive amounts of people have resigned from their jobs since the pandemic. 

Where are they going? According to a survey by Digital.com, 32% are starting their own business.

Why are they starting businesses? Here are the top 5 reasons (people could select more than one answer):

  1. To be my own boss
  2. Pursue an idea I’m passionate about
  3. Fill a need in my community
  4. To build wealth
  5. Create jobs in my community

Notice how purpose drives most of these and profit is mentioned directly only in #4. Dennis Consorte, a startup consultant, said in an article on the survey, “by pursuing a passion, work won’t feel like work, but will instead give you purpose, which is far more valuable than the dollars earned.”

Even startups driven by purpose still must consider profit. Consorte later advises, “Think through your idea and build a financial model on paper that is both profitable and sustainable before you make a significant cash investment.”

I wish you the profit and passion that sustains your purpose. I wish you well.


- Rob Stephens

CFO Perspective Resources

  • Video: How Do You Create Value? - You get what you value when you provide value to others. Business success comes from creating value for owners, customers, and employees. I’ll explain how to discover and increase what each group values. I’ll also reveal the “Three D’s” and “Three P’s” that each group wants.
  • Course: ACE - Strategic Planning for Small Businesses - Small business strategic planning should quickly lead you from defining where you are going to deciding how to get there. Getting there takes a well-built strategy and implementation plan. Get planning and management tools with the basics of how to use them.
  • Course: Creating Value - Business Success from Shared Value - You get what you value when you provide value to others. Business success comes from creating value for owners, customers, and employees. In this program, you'll identify exactly what each of these three groups value and how to increase that value - and your success.

Get all the CFO Perspective resources with a FAST (Finance and Strategy Toolkit) membership.

Get the tools, guidance, and support for superior business performance

Get all the CFO Perspective courses plus more in one package. FAST (Finance and Strategy Toolkit) is the membership program that gives you the resources for better strategic financial management. Get direct access to me as well tools for improved decisions that lead to superior business performance.

The right tools save you time, reduce your stress, and improve your effectiveness.

Learn More
>
Success message!
Warning message!
Error message!