Question

When generating a business idea, why is it important to consider your education, hobbies, personality traits, and work experience? How would the form of business (sole proprietorship, partnership, and corporation) affect your decision to start a business based on your personal attributes and qualities?

Answer 1

Considering one's education, hobbies and personality are important while generating business idea. This is because any person has to be passionate about his/her business and he/she must like all the activities associated with it. For example, if I were to open an accounting firm, I must be having educational qualification as well as a personal affiliation or liking towards the tasks of accounting. Otherwise, the work will not be able to satisfy me for long which can cause mental stress and impact the business negatively too.

Similarly, studying one's personality helps in understanding what form of business will be suitable for him/her. A person who likes to work alone is better suited for a sole proprietorship but it also requires single handling of finance and other aspects of the business. If unable to perform them, then a partnership is a better option. Similarly, if one has adequate knowledge about the business and the consumers, he can work on his own and take major decisions. But if a person doesn't have expertise in the business he is about to start or has started, getting a partner who has expertise can help in making the business a successful venture.