There are various reasons for setting up in business, for example, the desire to become financially independent or be your own boss. But what is the significance of understanding the 'Why' of your business?

1. The ‘Why’ of your business

2. The ‘Why’ of your business
There are various reasons for setting up in business, for example, the desire to
become financially independent, be your own boss or have more flexibility in your
professional life.
Being clear about the reason for setting up in business certainly leads to better
choices and decisions, while it also keeps your motivation boosted even during
difficult times.
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3. So, what is your reason?
As a business owner or entrepreneur, consider your answers to the following
questions.
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What will the business eventually provide you with? What do you want the business to
ultimately enable you to be, have and do? What sort of income and lifestyle do you
want to walk away from the business with? And why that specific income or lifestyle?

4. What future option does your
reason align with?
It is your reason for being or starting in business that may ultimately determine
whether your business develops into an asset that can eventually be sold or into
a lifestyle that you desire for yourself.
When the business is created as an asset, you will eventually separate yourself
from it. When it is created for a lifestyle that you desire, the business may not
become a separate entity.
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5. How will you get there?
The significance of understanding both the ‘why’ of your business and the chosen
option (asset or lifestyle) is that these will feed into your business plan. This will
provide you with the route that will enable you to achieve your ultimate reason.
Consider your answers to the following questions.
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How long do you intend to run the business for? How and when will you separate
yourself from the business? What needs to happen for the business to have the sort of
value that you want by the time of the ‘exit’? What sort of person, entity or company
could be the potential buyer? Why would they buy your business?

6. How will you get there?
Likewise…
consider your answers to the following questions.
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What sort of lifestyle do you want to create from your business? What regular income
do you need to generate for the lifestyle that you want? When will you retire and
what sort of income do you want to have when you do retire?

7. The ‘Why’ of being in business
At the planning stage, clarity about the exit plan is crucial, as in the course of
setting up and running your business you will continuously see new options, have
ideas and be offered opportunities or partnerships that will be enticing.
Having a clear exit plan will mean you are not blinded by the temptation of ‘shiny
objects’ but rather that you evaluate any new opportunity in light of your planned
‘exit’ and how it contributes to you achieving the ‘why’ of being in business.
Ultimately, the reason of your business is not your life aim but a vehicle to
achieving it.
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8. The ‘Why’ of your business
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