There are different reasons to start a company, and different types of companies. The reason(s) why someone wants to start a company should determine the type of company to start. Below are a few reasons along with a couple types of companies that might be appropriate.
Independence. Being an entrepreneur provides lifestyle flexibility. You don’t have a boss telling you when, where, or how, or what to work on. If independence is what you desire, you might start a lifestyle business or consultancy. Independence is the reason I launched my video course. A venture backed, high growth, startup won’t provide you with much independence because you’ll be working so much and because you have accountability with with co-founders and investors. Lifestyle businesses or consultancies, won’t grow to be huge, but they often don’t have to require much time commitment, and provide flexibility.
Altruism. Some people want to solve an important problem (like education), create jobs, advance technology, etc. To make a big impact you’ll probably need a lot of money. A venture backed startup, a non-profit, or a social good for profit company could be for you.
Wealth. Some people want to make a ton of money. The best type of business to start to make a ton of money is up for debate. If you really want massive amounts of money, you’ll probably have to take the risk and build a venture backed startup capable of IPO-ing. But it’s very much an all or nothing proposition. The probability of making zero is high.
Enjoy your work. Some people want to work on stuff they enjoy (customers, industry, responsibility, etc). The right business to start for this of course depends on the kind of work you enjoy.
What other reasons are there for starting a company? What’s attractive to you about starting a company? Let me know in the comments.
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