Starting a business to become wealthy sounds perfectly acceptable, but there’s a catch. When you launch a business primarily to make money, you’ll make choices that align with your bottom line. When profits are your priority, it’s easy to lose sight of what’s best for your customers and employees. You also might miss opportunities that don’t pay off in dollars.
While getting wealthy is a worthwhile pursuit, and the folks on Shark Tank are proof of that, here are four reasons not to make wealth your primary reason for running your business.
- You won’t be successful if you don’t enjoy what you do
You probably started a business because you got tired of working for somebody else. Don’t let your business turn into another job to hate just to generate dollars. As far back as 2013, Gallup’s State of the American Workplace report has revealed 70% of Americans either hate their job or are disengaged. According to Gallup, disengaged employees cost up to $550 billion per year in lost productivity. If you don’t enjoy the business you’re in, that attitude will trickle down to your employees, and it will cost you success.
There’s another way you’ll sacrifice success when you don’t enjoy what you do. Every business goes through difficult and trying times. When you already don’t like running your business, those difficult times will seem like good reasons to quit.
When you enjoy what you do, you’ll make it through difficult times. You won’t just quit out of frustration. Loving what you do will afford you the perspective needed to push through setbacks and breakdowns that would otherwise make you want to give up.
If you’ve started the wrong business, it’s not too late to create again. If you haven’t chosen a business yet, there are plenty of options out there. If you’re not sure what kind of business appeals to you, check out these business guides published by Incfile. They’ve got thorough guides for starting a business in a variety of areas including becoming a seller on Amazon and Etsy. Each guide provides detailed statistics specific to that particular business that will help you decide which business is right for you. For example, in the Etsy guide, you’ll learn what the company charges for listing fees, commissions, and payment processing fees specific to their platform. The guides are well thought out and will give you specifics for multiple industries all in one spot.
- People-centered businesses thrive
The businesses that thrive are ones that focus on people, both consumer and employee. Running a successful business requires having a happy, engaged team. Strong teams are built by business owners that care about their wellbeing and support them from the ground up. Strong teams provide better customer service because they’re able to be attentive to the customer’s needs.
In today’s world, generally speaking, customer service is a bit lacking. Unfortunately, many people are used to bad customer service, and it doesn’t take much to dissolve their loyalty. Statistics reveal that after one negative experience, 51% of customers will never do business with that company again.
If you sidestep focusing on the people who make your business successful (customers and team members) just to make more profit, in the end, you’ll lose.
- Putting profits first can silence your intuition
When money drives all of your decisions, you’ll miss opportunities that present themselves to your intuition. For example, if you meet someone who happens to be selling a product you need, but their product is twice the price of your budget, your rational mind will tell you not to pursue a connection no matter how much you like that person. What you may not know is after getting to know them, they might want to sponsor you or even partner with you, and you might not have to spend a dime.
- If your definition of wealth isn’t precise, you won’t feel successful
The final reason it’s important not to start a business in order to become wealthy is because “getting wealthy” isn’t specific enough to achieve. What is “wealth” to you? How will you know when you’ve become wealthy? Is wealth a specific amount of annual income, net profits, or is it your net worth? Does it exclude your outstanding bills and debt?
Wealth is a nebulous goal unless you can get absolutely specific about what it means. Satisfaction is far more attainable, and in the end, will make you happier.