If asked to picture a successful entrepreneur, what comes to your mind?
Most people have an outlandish idea regarding all successful entrepreneurs. Entrepreneurs like Elon Musk, Zuckerberg, and Steve Jobs are the outliers that come to most people’s minds.
But the personalities mentioned above don’t make up the bulk of successful entrepreneurs. There are 400 million entrepreneurs around the world today; this means one in every 18 people own a business. The number is only growing with more and more people leaving their 9-5 jobs to pursue their goals.
A common man, however, imagines the fancier side of entrepreneurship. This expectation of immediate success with entrepreneurship comes from different sources. One such source is the romanticization in Big-budget Hollywood blockbusters which has distorted the image of entrepreneurship. The truth is that movies often ignore the crucial elements of an entrepreneur’s life.
Entrepreneurship is not easy. Quite simply put, being a successful entrepreneur requires a lot of compromises and hard work. Of the many people that claim to be entrepreneurs, only a few go on to be successful. The successful entrepreneurs are the ones who have full faith in their goals and belief and hold on to the critical entrepreneurship facts.
What it takes to become a successful entrepreneur has never changed and will never change.
Here are some entrepreneurship facts that successful entrepreneurs believe are key to their success.
1. Failure
Failure often holds the key to success; a successful entrepreneur is one who identifies the reasons for previous failures. Experts and entrepreneurs alike consider failure to be the best teacher.
Failure comes from ambition. An ambitious entrepreneur will take decisions that can both fail or succeed. It is during times of failure that the true grit and character of a person comes out.
Risk is critical to the success of a business, and taking risks often leads to failure. A company that is not taking risks and is staying in its comfort zone will not be successful until it does the latter.
Belief over the idea is also crucial in avoiding failure. Fearing for the worst eventually leads to the worst occur.
A little more than 50% of startups fail in the first four years of creation. 19% of startups fail because of the competition whereas another 18% fail because of pricing or cost issues.
To prevent the failure of your idea, you need to do everything to foster the success of your new business.
You need to start by making a great business brand which includes a big name and a great logo design.
A strong brand communicates what your company does. A good logo and brand also help in developing trust and credibility with your prospects and customers.
Taking a good start is crucial to set the tone of a business. However, if a decision backfires, it is equally essential to react well to the setback.
Another aspect that contributes to the success of many businesses is the location. Many countries and environment are not friendly for new startups. Some states have an emerging industry not familiar with international practices which makes it more difficult for a business to adjust.
The initial stage is crucial to the survival of a business. For a business to survive, it is critical to ensure that it chooses the ideal location and the right means of communication.
2. Take Risks
There are many stages of business. For all businesses, survival is the first stage. In a competitive world, only the fit survive. A company that survives the initial phase has the potential to make it big. The success of the business now depends on the drive of the entrepreneur.
Once a business ensures its survival, the next stage awaits. With a steady flow of revenue, growth should be the next objective of the owner.
Let’s face it, scaling the business and setting objectives accordingly is hard and requires a considerable effort. An entrepreneur has to study the different facets of the decision. They have to research all the time. If you are new to this world, and are looking to grow your business, check out the Total CEO Mastermind!
A business decision is not always in the best interest of every department. In case of a conflict of interest, it is the responsibility of the entrepreneur to choose a path that is favorable for each component of the business.
Growth is a long-term objective. Although short-term targets are crucial to the success of the entrepreneur, long-term objectives provide a business with direction. Risk, like all other business decisions, is essential for the achievement of long-term objectives such as growth.
Before a business thinks of growing and taking risks to pursue the objective, it needs to identify opportunities. Analyzing and understanding the demographic better help in creating possible distribution channels and a supply framework. There are dozens of new opportunities that a growing business can pursue. However, analyzing each avenue and researching each prospect thoroughly will help in pursuing the chance immediately.
Not taking risks, such as financing growth, can be a recipe for disaster for new startups. With the need for diversification and quality trumping other factors in most markets, the cut-throat competition will end the business.
The failure to take risks will make a business inflexible to react to the eventual changes in the industry. This inability to be proactive is the main reason why 19% of startups fail due to the competition.
3. Funding
Funding is another aspect crucial to both the survival and growth of the business. The capital and the investments are crucial for the regular operations and functioning of a business.
Many entrepreneurs look to fund their business out of pocket. 80% of the entrepreneurs fund their startup out of their pocket. The other 20% depends on the kindness of strangers, friends, and family. Businesses looking to finance the operations externally often look in the direction of banks and venture capitalists for a loan.
Funding is a common pillar of entrepreneurship that is universally accepted as the lifeblood of newly formed startups. Without capital, no business can start operations. There are many ways that an entrepreneur can finance the business. However, the source of finance depends primarily on the type of business and industry the business is operating in.
Entrepreneurs that don’t have the money to start a business often opt for a bank loan or crowdfunding option. Governments and banks encourage the formation of businesses; this is why banks offer additional earmarked funds for small business lending.
Regardless of the option you choose, never make the mistake of undermining financial funding for the business. Funding and financial capital are the two sources that keep a business alive.
4. Living the Startup Life
As suggested earlier, being an entrepreneur is not easy. You need to have certain personality traits inbred in your system to be successful.
Business experts and successful entrepreneurs can list down numerous qualities that sail a sinking ship to shore. However, the difference is only possible when you en-grain the philosophies of success in your system.
One big entrepreneur fact that all potential entrepreneurs need to be aware of is that startup life is not as rosy as it seems.
Businesses are not showered with riches as soon as they enter the industry. The process is a hard grind that can also lead to failure.
Living the startup life is synonymous to making compromises. Compromising the fun hangouts with your friends and family or compromising on the time you get to relax daily is easier said than done.
Entrepreneurs need to work tirelessly. More than 19% of entrepreneurs reveal they work 60 hours a week on their business. Some entrepreneurs have the willpower to go the extra mile by managing a job along with their entrepreneurial pursuits. A part-time job helps a person in raising essential finances for the business. However, the opportunity cost of working part-time is the time lost during the day.
A business in a competitive environment has to value each day and put on a performance in front of both competitors and potential buyers. To make success a consistent part of the business strategy, it is crucial for entrepreneurs to evaluate their attitude.
Contrary to the popular belief of persistent hard work and attitude, many successful entrepreneurs believe that a re-evaluation of the attitude helps in achieving success. Honest introspection is always more insightful and beneficial for a startup.
In short, if you want your business to succeed, prepare yourself for the long hours. The action may not have any short-term payoff but it does help in getting your business off the ground.
5. Get Your Profile Right
Young often entrepreneurs underestimate the significance of market research and experience. Both factors play a crucial role in the success of the business.
According to research, entrepreneurs that have worked in the same industry before they start a business are 125% more successful. Similarly, entrepreneurs that spend at least six months researching the market and its dynamics are more likely to succeed than businesses that come unprepared.
A major myth surrounding entrepreneurship circles is that most young people are successful in startups. However, reality suggests that only 20% of startup founders are in their 20s.
Another popular myth that Hollywood reinforces is that most startups are run by college dropouts. This again is not true, as 39% of the entrepreneurs have a bachelor’s degree or higher.
Therefore, rather than believing in fictitious stories, it is crucial to set the right profile.
Education related to the industry and awareness of the fundamental dynamics of business help in setting a business afloat.
6. Never Stop Learning
Once hard work paves for initial success in terms of high revenue, that is when the true moral of a person comes under scrutiny. An entrepreneur should have the acumen to handle both success and failure.
Crucial to handling success is not to forget the primary principles that led you to it. Many businesses are scared to go the extra mile once they taste success. The drive to know more and to learn more is what separates good entrepreneurs from the rest of the lot.
Learning is another entrepreneur fact that is often undermined. Continuous keeps an entrepreneur aware of the trends in the market.
An essential part of the learning process is experimentation too. Taking risks and trying new methods often reap handsome rewards for entrepreneurs. Failure in an experiment will only help a business in learning more of the market.
7. Capitalize an Original Business Idea
While a start-up may not have the resources to launch revolutionary products, a well-settled business can capitalize on original ideas.
There are many examples of businesses introducing new ideas or launching new products after the business has left a mark in the industry.
At times ambitious ideas need a solid base, and a well-settled business provides just that.
8. Reduce Costs
With time businesses find tough to remain profitable in tough economic times. Reduction of costs ensures efficiency and higher profits for a business.
Going digital and outsourcing tasks that occupy a lot of time are some ways business look to reduce costs.
There are plenty of ways to cut the costs of a business. Analyzing your options, however, is crucial before you employ cost-cutting measures.
9. Choose Your Industry Wisely
Digital media, energy, and medical marijuana are the fastest growing industries in the USA.
Before you start investing in a startup, it is crucial to investigate whether the industry has the potential to return the favors of investment.
Investing in a dying industry is a recipe for disaster.
10. Give Back to the Community
Another crucial aspect of successful business ventures is the positive word society has to say about them.
Partnering with a charity, or providing opportunities to young individuals from underprivileged backgrounds are some of the ways to spread a positive word.
In addition to making charitable efforts, a business can give back to society by sponsoring education or sports team and celebrating local culture passionately. Contact with the general market and a kind word out is never harmful to the success of a business.
The facts mentioned above are some essential facts and tips that all entrepreneurs must be aware of before they set off on their venture.
Chris Giorgio is the President of Fully Accountable. Fully Accountable is an outsourced accounting firm specializing in eCommerce and digital businesses. Chris has served as a CPA, CFO and has over 14 years of experience in the accounting and finance industry. Chris has dedicated his career towards helping entrepreneurs and high-level business owners achieve greater profitability through specialized outsource accounting functions.
