There are many reasons why entrepreneurs take risks associated with launching and running their business venture. Some do it to fulfill their dream of earning lots of money, others do it for the challenge, and some do it because they believe the product or project they have in mind has enormous business potential. But all of them are ready to face the inherent risks associated with launching and running a business enterprise because they feel motivated. Sadly, along the way, many of them drop out of the journey because they may be unable to sustain their motivation to keep the business running. The reason they lose their motivation may vary from one entrepreneur to another, depending on the ups and downs of launching and managing a business.
However, it often happens because the concerned business owners tend to wrongly believe that making money or earning profits is the sole objective or purpose of their business organization. So, when they fail to make the desired profits quickly, they feel disheartened and give up. Here, one must remember that when the only goal of launching and managing a business enterprise is making money or earning profits, the outcome will always be transactional. Once self-interest and financial gain get established as the sole business goal, the adverse effects percolate throughout the organization. Most employees will then focus more on their own needs and objectives than their contribution to society or the organization. And ultimately, it leads to short-term thinking and decision-making amongst the employees and the business owner, as well as to a lack of trust, goodwill, and cooperation among the customers, investors, and other stakeholders.
On the other hand, if entrepreneurs want their businesses tosurvive and thrive during times of turmoil and disruption, they should be able to create something of value to society or give a new direction or meaning to stakeholders’ lives or have a strong desire to help others or do something significant and satisfying. Instead, if they consider profit as the primary driver and believe only in earning more and more money, then eventually, they will lose the motivation to make their business a success. On the other hand, people can remain motivated and sustain their interests indefinitely if they have a robust value system and believe that their lives and related activities have a higher purpose and meaning. Hence, they should accept that though profit is essential, it is just a by-product of running their business excellently.
In other words, money is simply a means to an end and not an end in itself. So, while money can be used as an essential resource to facilitate achieving various goals, it should never become the sole motivational factor. Instead, entrepreneurs should be enthused and guided by a strong desire to bring a positive difference to their surroundings, and they should feel inspired to contribute something valuable, sustainable, and larger than themselves. Such commendable goals and objectives will give their lives much-needed meaning and purpose. Making money or earning profits is only one of the incentives for running a business. However, young and budding entrepreneurs often become obsessed with making lots of money or earning huge profits. They forget that profit is just a by-product of the business, not its only goal or purpose.
Unfortunately, in their obsession to maximize profits, the business owner and employees may resort to unethical practices and forget to respect the customer or other stakeholders. It can cause immense harm to the goodwill that the business enterprise has established in the market. Naturally, such businesses may eventually fail because the customers, employees, investors, and other stakeholders may develop negative feelings because their organization is solely focused on profit maximization. To avert such an unwelcome scenario, every business enterprise should focus on something more meaningful than just profit. Doing so will send a strong and encouraging message that profit is only one of the many focus areas for the concerned business organization, alongside concrete benefits to customers, employees, investors, and other stakeholders.