Why do so many new businesses (around 80%) fail within the first five years? I have studied a plethora of the reasons that business authorities cite and few are accurate. I suspect new businesses fail for different reasons including the following;
- Going into business without fully understanding what is required and what it takes to succeed;
- Going into business without a credible road map to follow;
- Getting into business with no understanding of what skills are required to succeed in your specific business;
- Starting in business with no competent advisors, coaches, strategists, mentors or trainers;
- Going into business with inadequate self-knowledge enough to allow the entrepreneur the roles that are best aligned to suit one’s strengths and natural abilities;
- Failure to have a personal business and entrepreneurial development program and or goals;
- Going into business with no full understanding of what is required and what it takes to succeed.
Succeeding as an entrepreneur takes hard work and persistence because, unfortunately, there is no business start-up fairy who magically bestows success on small businesses and their owners.
Passion, perseverance and a positive attitude tend to set successful entrepreneurs apart. Cultivating these attributes requires an innate skill set and here are some tips to get started.
So here are the main items to take into consideration if you’re trying to develop a business platform. These elements constitute will support a smart strategy for any new enterprise:
- Love what you do.
Passion is key to keeping a business strategy moving. Half-heartedness in an entrepreneurial endeavour will chip away at your drive to succeed. Perseverance is the one thing that’s guaranteed to move anything over time, whether it’s a person, a job or an entire company. Abraham Lincoln failed at most of his efforts until late in his life, but he never gave up.
- Take baby steps.
Jumping all in is rarely ever successful. There are success stories about people who invested everything once and came out winners after six months or a couple years, but those are rare. Risk management is an essential factor in any start-up, and balance is vital. You can absorb losses more easily if you take smaller risks in the beginning. Those will provide essential and productive lessons.
- Learn from others.
Successful entrepreneurs often worked for others in their field of choice before striking out on their own. Spending a few years in the industry under an excellent mentor will provide a good launching pad. Learn from your predecessors’ mistakes and brainstorm about how to improve upon their model. Find someone willing to teach, and think about starting your business elsewhere when you leave.
- Learn how to self-promote.
Confidence and a good elevator speech can take any pitch to the next level. The first marketing any company experiences comes from its founder. Spend time learning how to share your vision without coming across as “salesy.” Don’t be afraid to ask for the sale, but remember: the client is always the focus.
- Constantly take action.
Entrepreneurs are movers and shakers. They can’t afford to analyse every detail or they’d never get anywhere. There is no place for procrastination in a start-up. It’s a 24/7, no-vacation-or-sick-days kind of job that demands constant forward momentum. Make a brief assessment at every step and move on it. Trust your instincts.
- Make a plan.
Read about successful businesses. Take in the wealth of knowledge that’s been provided by successful entrepreneurs such as Steve Jobs and the personalities from Shark Tank. A successful business plan does not have to be a book. A 10-page plan is digestible yet long enough to include everything you need to start.
- Build a reputation.
Maintaining a blog on a well-hosted website, or volunteering your time and skills, shows instead of tells the community, and thereby builds expertise and trust.
- It’s never too late to start.
Many successful entrepreneurs started later in life. J. K. Rowling (Harry Potter author), Julia Child (chef), and Sam Walton (Wal-Mart) all started their wildly successful brands after they were comfortably along in their lives. Having the experience that comes with age can give you a unique outlook on your business. Life experiences bring depth that the most educated young adult, by his or her nature, is less able to foresee.