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- Reasons / personal motivation to start a startup
Reasons / personal motivation to start a startup
There are many benefits to having a successful startup. This is why so many people are looking for the next great idea. But not all startups are the same, not all of them follow the same timeline, nor do all of them become overnight sensations. There are multiple types of fundings, products, and markets for entrepreneurs to choose from and it’s easy to get confused by it all. What can help you to find the perfect startup type is your motivation - why do you want to build a startup in the first place?
We're here to provide you with some insight on how to choose the right type of startup for you based on your personal motivation.
Is your primary motivation freedom? For some people, being able to work for themselves is even more important than making money. They want to be able to support themselves financially while going at their own pace and choosing their own hours.
If this is the case for you, bootstrapping is the way to go. Bootstrapping means financing your startup with your own resources, without outside investments. These types of startups focus on niche markets where there are fewer competitors and deliver a service that is very much needed by the target group. Taking this route will mean fewer risks and good chances of slow growth over time.
For a lot of people, the main motivation is money. If making as much money as possible out of your startup is your top priority then you might want to consider getting outside funding, for example from Venture Capital. If money is your motivator, you should aim at bigger markets, and doing that without outside funding is pretty difficult. These types of startups also face much higher risks. You can grow extremely fast this way, but you could also end up with nothing but the lost investment because the competition is much more brutal in bigger markets.
If your primary reason for creating a startup is to become famous and receive some recognition, focus on the attention-grabbing idea. Creating something for the bigger markets also makes more sense, in this case.
On the other hand, you might be one of those people who want to create a startup because it seems fun. Coming up with new ideas and action plans is engaging and exhilarating. But keep in mind that building a startup is no joke. It will probably take at least twice as long for you to launch and the technical, less fun aspects of it will have to be dealt with eventually. If your main goal is to gain some experience and have fun while you’re at it, then take as much risk out of it as possible and focus on bootstrapping.
Becoming unemployed can also motivate you to build your own startup and take your finances into your own hands. We would still recommend going small in this case. Try thinking of an idea for the niche market and focus on slow but steady growth. Yet again this is not the highway to becoming a millionaire, but it is a much safer way to enter the startup game.
As rewarding as building a startup is, it is just as much hard work, setbacks, and additional responsibility. This is why it’s crucial that you define exactly what you want to get out of this and why it is worth all the trouble for you.