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In my last article, I looked at what it takes to be a successful entrepreneur and what “success” means today. Here, I would like to dig when to start a business and provide some practical advice for entrepreneurs as their new businesses grow.
Deciding when to start a business can be one of the most difficult decisions for entrepreneurs. For many, it is an option between the ordinary grinding of 9-5 companies with the risk of smoking and becoming an entrepreneur in life too early before the real world experience is enough.
Keep in mind that most startups fail in the first year, there is a higher failure rate in the second year, and only about 2% of startups survive in three years.
Given the inherent risk of starting a business, there are two ideal time windows for starting a new business: when you’re out of school in your early 20s, when you have a lot of energy and no other commitment, or in your late 50s or 60s. , when your children leave home, and you think you have a bigger net worth. These two windows are easier times to take the risk of starting a business. But if you want to be a successful and profitable 40-year-old business, you really need to put on “sweat equity” when you’re 22 years old.
Related: Why Some Startups Are Successful (and Why Most Fail)
Don’t give up on equity
Successful entrepreneurs often say, “The first million is always the hardest.” True, this can be bypassed-but not unless you’re a techie who knows what he’s doing. In today’s hyperconnected digital age, an entrepreneur can launch a unique product or service online and be quickly profitable, especially if they use the right marketing and social media channels to build loyal customer bases and brand followers.
If you can get advice from entrepreneurs, don’t start a new business unless you know you have the impetus and the funds to get to the third year. And don’t let your company’s capital keep the lights on. $ 10,000 bills add up quickly, but if you start paying a fortune to pay those bills, you might regret it when your business earns $ 10,000 a minute.
If you are an entrepreneur, by definition, you are more likely to fail. That’s normal. But cleanse yourself quickly, and don’t let that define you. Learn from failure, and apply lessons to your next business. Try to create a positive momentum. Just like in sports or games, there are momentary changes in business when the stars seem to line up for you. Being focused and maintaining a high level of confidence is a big part of building and maintaining a positive momentum, and that positive confidence and energy will also inspire your team.
Related: How to create business momentum
Replace as you grow
The goal of being an entrepreneur is to work on your own and create jobs, careers and livelihoods for others. Once you’ve created a new job, you need to train someone and do it for them. If you do it yourself, you are wasting your time and skills that should be used to generate new revenue for your growing business. Assigning roles and responsibilities to others will give you the time you need to create new business and new income. You can’t do everything. Scaling up a business can be very difficult if the creator is microcontrolling or trying to do all the work himself. Learn to train others effectively and the art of delegation, and you will succeed. As a start-up, you’ll need time to work on strategic priorities such as profitability, marketing, cost management, hiring, employee retention, and communications. Remember: you manage projects, but you direct people. Successful entrepreneurs know the difference.
Have a plan in place
Finding people who are smarter than you is part of being a successful entrepreneur and, at the same time, having a long-term succession plan. Some people who are smarter than themselves may be scared and say, “Well, they can take my job.” On the contrary, I want to surround myself with more intelligent people who can do my job if something happens. There are about five people in my company who can be my successor if needed, and I’m proud of that because I know the company has a lifetime ahead of me. It will be a prosperous and enduring business that I will eventually leave behind.
Related: 4 Lessons in Inheritance Planning for Entrepreneurs
Always stay on and pay attention to noise
Nothing can fully prepare you for the ups and downs of entrepreneurship. Not even an MBA! There’s such a high level of failure with startups where a lot of smart and talented people don’t try. But of course, if you can get it, you’re in an exclusive group. But with that privilege comes a serious responsibility. Any successful entrepreneur will always be available to their team because your business is always up and running, which means you it should always be on.
And as you grow older, your livelihood will depend on you and your strategic decisions. Other priorities are left out, and days between 12 and 16 hours may become commonplace. When you’re so focused, driven, and dedicated to your business, it becomes a noise that you have to put aside outside forces (like critics and opponents). Always stay on, avoid noise and you will have a strategic advantage over your competitors.