We have all heard that most businesses fail in the first five years. But an in-depth study in 1993 by the New Jersey Institute of Technology suggests those figures may be a myth. They found that no more than 18% of new companies fail during the first 8 years of business. 54% survive more than 8 years with their original owners or a change in ownership, and the 28% of the remaining businesses voluntarily terminate operations without losses to creditors.
While many of those million people will give up, go bankrupt and go back to the employee life the statistics confirm that most of those people will find new satisfaction, a good living, and a path of pursuing their heart's desire. This will be our focus today on Minding Your Business: How to start a business the right way, and if you're already running a business, how to take that business to the next level.
Before you ever decide what business to operate, your first step is to honestly assess whether or not you have the traits to own your own business. There are some key characteristics of successful entrepreneurs. While every successful entrepreneur does not possess all of these traits, these do tend to be the traits shared by the successful.
Trait #1: The Need to Achieve
The need to achieve is an internal force that demands that you accomplish things in your life. Don't confuse this with the need to exercise power or the need to be liked or the desire to earn a lot of money.
Trait #2: Perserverence
Perserverence is the ability to "hang in there" and not give up. This includes the ability to follow through on commitments.
Trait #3: Positive Mental Attitude
Optimistic attitudes create positive outcomes. No one denies the mysterious connection between how you think and what happens as truth. You attract to yourself what you think about. Consequently, you must be able to think positively to make yourself successful.
Trait #4: Objectivity
This is the ability to accurately assess risks with decisions to be made and also not allowing your ego to dictate your course of action
Trait #5: Foresight
This is the ability to anticipate changes that are needed before the problem arises
Trait #6:Good interpersonal skills
Business owners are politicians, and the best business owners get along well with other people.
Trait #7: A thick skin
Many hard decisions have to be made. The successful entrepreneur has to be able to withstand criticism. Everybody is always second-guessing your decisions. It's amazing how many "arm chair" entrepreneurs are out there who have never run their own business, yet would love nothing better than to tell you how to run yours.
Trait #8: Strong communications skills
The ability to write well and speak well is very important to success. That being said, you can "hire" written communication (as in copy writing). You have to be able to communicate well to contractors, employees and others involved in providing for you.
Trait #9: Resourcefulness
Resourcefulness is the ability to solve unique problems in creative ways in which you have no experience. It's a wild card. Think of it as the "MacGyver" factor. Can you solve problems using simple household items? If so, you're resourceful.
Trait #10: Technical knowledge
You have to know what you are doing, or at least be able to learn. Successful entrepreneurs soak up knowledge like a sponge. Especially in the internet business, there is plenty to learn. If you think you can just put up a website and sit back and wait for your millions, you still have some learning to do.
Trait #12: A respectful attitude towards money
Money can't be seen as an end in itself, but as a means for making things happen and accomplishing goals.
So, with all that in mind, it's time for you to sit down and accurately assess your strengths and weaknesses. If there is an area above that you lack, what will you do to overcome that weakness?
Copyright (c) 2008 Mark Albertson
If you are looking to become that next successful entrepreneur, consider what other entrepreneurs have found as they worked through their transformation into a successful business person. Not every entrepreneur has used all of the following ideas, but most will acknowledge their importance in getting to where you would like to be in business.
Set goals
This idea may sound a bit obvious but it is ignored quite often in the excitement of getting a business started. You need to have an idea of where you would like to end-up with your business idea. In this way, you can begin to set intermediate goals that will get you to the end goal. Your intermediate goals may start with a daily task list that ends with the successful completion of a more prominent goal a few weeks down the road. As these intermediate goal successes pile up your ultimate goal is one step closer. Baby steps are the words here.
Know your market
Education is power can be taken to heart in building a business. You are sure to attract and recruit good people along the way, but you still need to have a good idea about how things in the market you are tapping work and why. Take classes, talk to others in the field and fall down a few times on your own so you learn the "hard way."
Look through the clutter for good ideas
One of the skills that you will need to learn is how to sift through all the clutter that you will inevitably run into during your busy days. Some people just have the knacks of sorting through the static, but starting out, keep your baby steps in mind and what is needed to meet them. If the clutter is getting in the way of achieving that baby step ignore it, but keep it in mind for future reference.
Build relationships and tap the pain
If people are not helping you along your path they are potential sales. Understanding why these people want to buy your product or service is critical (how will this product make a persons life easier or better?) What pain drives them to need the product or service you are offering? Developing a pain list is a real priority even before you get going.
Taking a leap of faith
When it comes right down to it, you are going to need a bottle of aspirin. At some point every entrepreneur needs to be able to step off the edge and go-for-it. In some instances this may entail money commitment, in others time commitment. At some point all successful business people make that fatal decision of "all or nothing."
Spend wisely
Making the "all or nothing" leap of faith does not mean that successful business people are foolish with their hard earned capital. Every successful entrepreneur has a different perception of how to go about allocating capital, but all indicate that money is not water. If a large capital expenditure is needed they say that they are prepared to make it, but only after prudent research.
Reinvest in yourself
As business begins to take off most successful business people indicate that putting profits back into the business before paying yourself a kings ransom is the way to go. You want to make sure to pay yourself but make sure you pay the company until a fairly stable financial structure has been formed. After this has been achieved, pay yourself a bit better understanding that expansion of the business will also take capital.
Passion, focus and sticking at it
Belief goes a very long way in starting a new business. If you believe in your ideas others will tend to follow. Passion will sustain you as well, during those dark times when more things then you would like aren't going well. Unless you are extremely lucky, the process of getting a business off the ground is tough so you need to be able to stick with it.
Use smart people
Every single successful person in the world today will tell you that having smart people around you is the only way to go when starting and maintaining a new business. In most cases, these same people will also indicate that the people around them are smarter then they are. Remember also that this idea works all along the manufacturing and management spectrum. A shipping clerk will undoubtedly have a few good ideas that you had never thought of. Hiring wisely and being able to listen to those you are paying is a good idea.
Recognize the perception of the customer
Being able to understand the customer is a very important part of starting a new business. You are, after all, selling to them. If you do not recognize their needs how are you to sell to them? Once you recognize these needs working at communicating at their level is important. This takes time, but it is a necessity.
Both Mark Albertson & Pawel Reszka are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mark Albertson has sinced written about articles on various topics from Finances, Internet Marketing and Entrepreneurship. Having owned five successful businesses in his lifetime, noted author, coach, speaker and attorney, Mark Albertson, coaches people interested in building profitable businesses. Mark is also a radio personality in the Seattle area, hosting KVI talk radio's. Mark Albertson's top article generates over 33100 views. to your Favourites.