Small Business Advice

Profit or passion? Which route should you take when launching your business?

22 Dec 2015

From following your dreams to making more money, there are plenty of reasons to start a small business. But is it better to pursue a business idea for passion or for profit?

Is it enough to do something you love even if you don’t make a lot of money, or should you pursue an industry that you’re less passionate about, but where you’re more likely to maximise your profits?

This is a common decision entrepreneurs and small business founders face when they decide to set up a new company, and it’s definitely worth thinking about.

Profit over passion?

Apprentice GroupThe final episode of the BBC’s entrepreneurial reality show, The Apprentice, offered an example of this sort of decision making in action. Billionaire entrepreneur and investor, Lord Alan Sugar, faced the difficult decision of whether to invest £250,000 in Joseph Valente’s plumbing finder franchise or Vana Koutsomitis's gamified dating app.

When making his decision Lord Sugar weighed up the strengths and weaknesses of a plumbing business that is far from revolutionary but could potentially make millions, or a highly risky but innovative and potentially lucrative idea to combine dating and gaming in order to match singles.

In the end, despite acknowledging his strong passion for technology and his experience in the tech sector, Lord Sugar opted for the less risky path – he chose the plumbing business.

Follow the money?

Profit can serve as an important driver of business success, but does following the money just amount to taking the safe bet?

Apprentice JudgesThe Global Entrepreneurship Monitor, which surveys more than 200,000 adults around the world who are looking to start or are currently running a small business, studies the motivational factors behind startups.

Its 2014 survey found that in the UK 83% of entrepreneurs have started a business because of a perceived opportunity. Of those, 52% were described as improvement driven, suggesting they are either seeking more money or more independence rather than pursuing a passion.

Keir Wright-Whyte

photo

Managing Director

0207 043 4000

About the author

Originally graduating with a degree in geography from Edinburgh University, Keir claims that he was then tricked into becoming an accountant by one of the UK's top 5 accountancy practices.The deception extended to the usual training in audit and associated activities.

Keir subsequently worked in a number of advisory roles with clients including in the energy trading, pharmaceuticals and financial services sectors.

He loves working at Accounts & Legal because of the variety of work and clients, the excellent team ethos and morale, the importance placed on genuinely helping and being useful for clients and because he believes what he does matters to clients and helps the firm.

Keir's primary role is to ensure that new clients with complex businesses or needs are on-boarded in the best way and he is a "trouble shooter" both for clients and where complex issues arise internally. He also helps the accounting teams strive to improve what we do for clients, whether processes or services.

When not debiting or crediting, Keir has a penchant for fixing old buildings, skiing, surfing and cycling.

  

We can help your business grow

 

We're accountants who specialise in working with small businesses, from start ups to growing businesses. With offices in London and Brighton, we're a highly cost effective solution for compliance but also for strategic planning, bookkeeping, tax and accounting support

 

Call us today or get an instant quote for our services!

 

Instante-Quote-Accounting