What it takes to own a business

The "why?": the main motivator for starting a business

The most important aspect behind starting a business tends to be the why. For most founders, the motivation is personal. Better financial compensation is usually what springs to mind for most but, surprisingly, its not the key driver. It turns out that being the one to call the shots, make key decisions, and lead a business the way they want to, is the biggest draw for business owners as 75% of founders cited that being their own boss was the top motivation.

While the traditional 9-5 can work for some, the rigidity of it can be stifling and can impact on quality of life. According to a recent study by CIPD, 80% of employees stated working flexibly had a positive impact on their quality of life. It could be why flexibility and work-life balance followed up closely, with 58% stating that it played a key role in their decision to take the leap into running a business.

However, money does play a role, as 44% were driven by financial independence. So, while the image of the profit-hungry businessperson persists, the reality is a lot more nuanced. For most SME founders, the decision is rooted in the need for independence, flexibility, and purpose. The fact that being in charge outweighs financial motives for three in four business owners highlights that control over their working lives is the true currency here.

Have you got what it takes? Business leaders share the most important skills for success

So, what skills are needed to become a business leader? According to the business leaders we surveyed, it's not great networking skills or a killer pitch. It's the less glamorous, but equally as important skills that keep a business afloat.

Having good problem-solving skills tops the list, as it's cited by 36% of leaders as the most important skill. When things go wrong, (which sometimes can be unavoidable), the ability to think clearly and find solutions is what separates those who thrive from those that fold. Unsurprisingly, right behind in 2nd spot is persistence (35%), which is an important reminder that resilience and sheer determination often matter more than having the perfect plan. However, while softer skills like communication (21%) and leadership (15%) are still valued, the data suggests that what business leaders really need, especially in the early days, is grit, practicality, and the ability to keep moving forward when things get tough.

The biggest challenges to get businesses off the ground

Starting a business isn't an easy task. It rarely goes to plan, and the early days are often the hardest, simply due to inexperience in many cases. The process of starting from scratch involves long hours, experimentation, trial and error, as well as learning new skills. But what is the most common challenge that new entrepreneurs face?

According to our survey, SME leaders said it was visibility. A striking 40% stated their greatest challenge was building a customer base or getting noticed. So, it serves as a reminder that even with a brilliant product or service, cutting through the noise and finding an audience can be an uphill battle.

Financial barriers come in close behind. Over a third (35%) stated that they struggled with cash flow, while 29% cited a lack of the capital that they needed to grow. And with 86% of founders funding their business from personal savings, it's clear that many are bootstrapping their way forward to get their business off the ground.

And it's no wonder financial issues took two of the three top spots. Money is the lifeblood of operations and growth, and sometimes it's impacted by things beyond a founders' control, such as the economy and rising prices. But having insufficient funds can limit critical investments in marketing, staffing, and product development. If left unchecked, could either stall momentum or bring a promising venture to a halt.

A warning to business leaders of the future: the most common mistakes made when starting out

Starting a business is full of unknowns, so we asked business owners to reflect on their early mistakes. The answers offer invaluable insight for aspiring entrepreneurs to prepare for.

Top of the list was a lack of a clear business plan and incorrectly pricing products or services, both cited by 39% of respondents. These are common missteps caused by rushing to market without defining a clear strategy or by not fully understanding the correct price point to charge customers. But as many now realise, unclear planning and incorrect pricing can often lead to missed opportunities.

Other frequently cited lessons include setting unrealistic growth targets (which 37% admit to), and poor cash flow management (36%). These often go together; when expectations outpace actual income, businesses can quickly find themselves overstretched. A third (33%) also admitted they didn't research the market thoroughly enough before launching, which can leave a business misaligned with customer needs or ill-prepared to compete. So, it's clear to see that no matter how passionate an entrepreneur may be, laying down strong foundations is vital for success. Planning, pricing, and pacing growth wisely can make the difference between merely surviving and scaling successfully.