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Running your own business can be very rewarding but there will be many challenges that you will encounter along the way. Identifying your particular reasons for going into business will help you to develop a clear vision for what you want the business to achieve in the future and what you personally want to get out of it.

Following is a list of some typical reasons for starting a business. You can use this list as a starting point to help you think about your situation or develop your own reasons as appropriate.

Typical reasons for going into business; 

• To make an income
• To gain control over your career
• You have an idea for a business
• You want to have control over your own work environment
• To have more flexible working hours
• You enjoy working for yourself and leading other people
• To generate an income and jobs for your community

Before deciding whether or not you should run your own business, you should also be aware of the many challenges and risks you may face as a new business owner. A thorough understanding of these issues will assist you in your decision.

Some of the challenges and risks are as follows:

• Initial funding - Starting a new business often requires some form of capital outlay. You should consider things such as facilities, equipment, hiring staff, and any marketing efforts. If you don't have the necessary funding, you may have to seek assistance from other sources of finance such as banks, investors, and family and friends.

• Cash flow - A profitable business does not necessarily translate to a positive cash flow. For example, customers may purchase your product or service on credit or you will have to spend money to purchase supplies and equipment for a job up front. To ensure a positive cash flow, you should implement a credit management system and offer incentives for faster payments.

• Market saturation - Undertaking market research is a critical success factor for all businesses. A highly saturated market would mean increased competition for your business. Even if you think you have a unique product or service, you won't be sure until you conduct some market research. This can be undertaken by yourself or you may choose to seek the services of a professional.

• Product awareness - If consumers are unaware of your product or service, they won't be able to purchase from you. In order to successfully reach your target market, you have to implement a marketing strategy consisting of market segmentation, targeting, and advertising and promotional activities.

• Staffing - As your employees will be dealing with customers and representing your business, it is important to ensure they can perform the job at a high calibre. To get the right staff, you should follow a carefully thought out recruitment process plan, or seek the services of a HR recruitment agency. Some things you may want to consider include: skills, experiences, qualifications, expectations and responsibilities.

• Suppliers - If your business is dependent on having on-time delivery of supplies, such as retail shops or restaurants, it is essential to carefully select your suppliers to ensure their reliability. Failure to do so may lead to an understock of supplies and consequently decreased profits.

• Time management - If you've worked a 9-5 job your whole life and decide to start your own business, you may become overwhelmed with the amount of work and responsibilities involved. For example, you might be responsible for opening and closing, ensuring tidiness of shop/office, paying the bills, checking accounts, and monitoring stock levels. Therefore, it is essential that you have good time management and learn how to prioritise your activities.