Self-made billionaires dominate the economic atmosphere of the global market today. The wonders of free trade have empowered small businesses to grow exponentially by advertising to a larger audience. Though most privately-owned companies only enjoy temporary success and fail after a few years. More than four-fifths of entrepreneurs make it past the first anniversary of the establishment. But only half of the small businesses traverse the fifth-year mark. And just a meager 30% of companies survive a decade in business! These statistics might demotivate newcomers to entrepreneurship. Though a few simple tactics can help you curb the chances of failure and get momentous achievements in this field.
Tips for success in entrepreneurship
Whenever people talk about entrepreneurship, they imagine a bunch of millennials gathered around a laptop/computer. This image isn’t false since many youngsters pursue independence instead of employment nowadays. But 60% of startup owners are aged 40-60, and, speaking statistically, middle-aged men are the most efficient entrepreneurs.
However, age doesn’t restrict success when you’re trying to establish a company. Seasoned entrepreneurs will tell you that there’s no fixed formula to succeed in the world of startups. However, veterans can suggest some possible ways to diminish the prospects of failure and attain success. Therefore, learn the following techniques before you enter this battlefield:
1. Be passionate
Starting your business independently from scratch demands diligence and determination. And you can’t dedicate your complete consideration to this project if you’re not passionate about the idea. So, ask yourself this question: Are you excited about the future of this company? Because you shouldn’t sacrifice your career for a venture you don’t love ardently. Entrepreneurs succeed because they’re obsessed with their ideas. This obsession is the secret of success in the business industry.
2. Continue studying
College dropouts becoming the world’s richest men encourages youngsters to abandon formal education. That’s another mistake that can lead to entrepreneurial failure. Don’t underestimate academic learning since it gives you the skills required to run a business. Students can now enroll in an online MBA no GMAT needed to focus more on commercial ventures. These courses help you gain business expertise to establish an independent company successfully on your own.
3. Specify your goals
Goal-setting comes next, where you determine the objectives your company is supposed to attain. These goals can be divided into two categories, i.e., long-term and short-term. These aims must be realistic, measurable, and achievable. You’ll measure the startup’s success in the light of these objectives. A company requires a performance-driven culture that can only be created via committing to these goals. They ensure your staff gives their optimum performance to the firm.
4. Don’t quit your current job
A sudden inspiration might convince you to leave your high-salary position to chase entrepreneurial dreams. But that’s a snare! Don’t resign unless you’re sure about the viability of your business plans. Studies show that people who keep their jobs are 33% more likely to succeed as entrepreneurs. We have Sara Blakely’s example, the founder of Spanx. She worked for two years in sales while researching her business plan. She resigned only after her startup’s launch was nearly complete.
5. Dedicate your time
You ditched your 9-5 stable employment to become self-sufficient. That’s great! But self-sufficiency requires your utmost attention. Elon Musk used to work 80-120 hours every week – as per different accounts – simultaneously supervising several companies. The average entrepreneur is overworked since one-fourth of them dedicate 60 hours/week to their startups. Yes, a work-life balance is necessary. But the initial days of your company do demand your absolute commitment.
6. Find a mentor
You can’t achieve outstanding commercial results without counseling from someone with actual business experience. Many famous entrepreneurs benefited from the mentorship of their seniors. Moreover, around 92% of small business owners believe that mentors directly affect a company’s growth and survival. So, find a person willing to advise you whenever your business encounters a crisis. The experienced guidance of a mentor can potentially save your startup from failure.
Similar to mentorship, networking is also a crucial aspect of entrepreneurship in the modern world. A 2016 survey by Forbes revealed that 78% of entrepreneurs considered networking vital to success. No business owner can thrive in isolation. Especially private-owned small companies! Your connections and associations help you find solutions to problems and exchange ideas to promote productivity. These links also assist you in discovering better marketing opportunities.
8. Get some clients
Don’t wait for your business to be established officially before you start contacting potential clients. Communicate with prospects before your startup goes live because your company wouldn’t survive much longer without customers. Start fishing among your target audience to connect with people over social media platforms. Leverage your previous associations to gather quality clients. Marketing for your company begins the moment you’ve decided to pursue entrepreneurship.
9. Find your niche
Market to your niche and focus on acquiring leads among the target audience. Try to understand your consumers’ needs and requirements. Some 80% of customers believe that the brands don’t understand their demands individually. Feedback coming from your clients is essential to improve your marketing tactics. Bring innovation into your ad campaigns via digital marketing. Entrepreneurs use chatbots, automation, and personalized emails to attract new customers and retain old ones.
Besides being innovative in your ads campaigns, you should also try to seek new business opportunities and find your ideal niche. Many successful companies use blue ocean strategies to find the best opportunities and generate more revenue. Blue ocean thinking allows to differentiate the company from the rival competition in the oversaturated markets and create a demand in growing markets. Especially for startups this approach can be a major life changing experience.
10. Cut the costs
Major reasons why many startups fail include the eventual drainage of funds. These companies initially spend massively on business expenditures, but neglect financial management. For instance, some firms squander on renting an unnecessarily-large building instead of creating a virtual workspace. Cut the costs wherever and whenever possible. Hire financial analysts to diminish your lavish expenses. Controlling your purse strings is necessary to stay in business for years.
11. Build your team
In the end, build your team carefully by recruiting people who share your vision for innovation. Interview people thoroughly to ensure only the most talented individuals join your company. You’re the boss now, so you must develop leadership skills in your personality. A leader is always open to criticism and new suggestions. Value your employees and make them feel important to the company. A motivated team is necessary for the progress of every startup.
Ambitious entrepreneurs have become a major driving force behind many startups in the United States since more than 60% of the country’s billionaires are self-made. There were 25 million American small business owners in 2016 among the 500+ million entrepreneurs worldwide. These individuals bring creativity into the market and innovate any industry they touch. All they have to do first is to find the need for their services. Then they should discover the smartest method to turn this need into profit. The pathway to triumph in entrepreneurship may be complex. Business is a silver-laden jungle for people with the right skills and academic qualifications. You just need patience and passion to make it through!