The 2 Most Difficult Challenges Facing Any New Business Venture
As someone considering starting a new business or venture I hope you are optimistic about the future and conservative with your business plan.
To appeal to your optimism I share the following; entrepreneurs have a much better chance for success then previously thought.
According to recent statistics published by the Small Business Administration (SBA) 50% of business start-ups will still be in business 5 years after start-up.
To help ensure your business is one of the successful statistics it is critical to address two of the largest challenges any new entrepreneur will face.
1.
Starting a new business for the wrong reasons.
Why are you starting your business? More money, more freedom, more time away from work, less responsibility or stress? If you think starting your own business will immediately fulfill these desires I urge you to think again.
All of these wishes are valid and almost every entrepreneur possesses some version of a similar combination, but these desires are truly a by-product of a successful business start-up.
The outcome of any successful business venture should be designed to provide for all of these initiatives, but these are not the values that successful businesses are founded on.
Passion, love, and inspired vision.
These are the founding principles most successful business are founded on.
By successful business I am not focusing strictly on revenue generated, profits produced, or market share.
I am more concerned about the business fulfilling the lifestyle needs of all of those associated with it.
If you truly love what you are doing and are inspired to share your gifts with those around you, you will be more likely to overcome most of the obstacles faced during the start-up phase.
2.
Not having a clear vision and plan for success.
Many business start-ups are founded on an enthusiastic and optimistic future vision, and rightfully so.
While the vision and enthusiasm are going to be critical to any business start-up, they are best shelved for a few weeks after you begin to seriously contemplate the viability of your new venture.
Many businesses were destined to fail from the beginning due in large part to an overly optimistic outlook held by a founding visionary who truly believes "if you build it, they will come.
" I am not saying this isn't possible - but I am saying it isn't likely.
Successful business are envisioned optimistically in the early stages of planning and then subjected to a few weeks of intense scrutiny and realism.
This thought process is often contrary to an entrepreneurial visionary who thrives on possibilities and freedom and feels constrained by planning and analytical thinking.
Truly successful entrepreneurs understand every inspired vision must be articulated and then taken through a structured process of strategic planning and analysis.
These components often include: Writing and reviewing a business plan.
Defining the business, vision, goals, key milestones, and performance indicators.
Identifying start-up resources required, capital, man power, etc.
Identifying all the "worst-case" scenarios and having a pre-planned back-up strategy defined.
Completing a full market analysis and understanding all competition.
Defining your ideal client and ensuring your product fills at least one of their needs.
Pre-planned objectives and strategies.
An understanding of first year expenses and a realistic and conservative revenue projection Most of these detail oriented tasks will challenge the motivation of many entrepreneurs, and in and of itself could become one of the biggest reasons you shouldn't start your own business.
Business success itself consists of being able to capture inspiration and motivation and subjecting it to the often boring and monotonous systems comprising any solid business structure.
As a business owner you must be able to maintain your motivation and optimism in spite of many of the boring details running a start-up business requires.
Don't get me wrong - once the business is stable there will be ample opportunity to delegate most of the detailed work to other individuals within the company.
Most small business owners will agree during the start-up phases you will wear many hats and ultimately your business success will depend on how well you wear all of them throughout the early years of the organization.
As you contemplate the successful launch of your next business make sure you are doing it for the right reasons.
Once you are certain you truly are passionate about the business you are creating, follow the structured start-up processes and you will be well on your way to a successful and fulfilling adventure.
To appeal to your optimism I share the following; entrepreneurs have a much better chance for success then previously thought.
According to recent statistics published by the Small Business Administration (SBA) 50% of business start-ups will still be in business 5 years after start-up.
To help ensure your business is one of the successful statistics it is critical to address two of the largest challenges any new entrepreneur will face.
1.
Starting a new business for the wrong reasons.
Why are you starting your business? More money, more freedom, more time away from work, less responsibility or stress? If you think starting your own business will immediately fulfill these desires I urge you to think again.
All of these wishes are valid and almost every entrepreneur possesses some version of a similar combination, but these desires are truly a by-product of a successful business start-up.
The outcome of any successful business venture should be designed to provide for all of these initiatives, but these are not the values that successful businesses are founded on.
Passion, love, and inspired vision.
These are the founding principles most successful business are founded on.
By successful business I am not focusing strictly on revenue generated, profits produced, or market share.
I am more concerned about the business fulfilling the lifestyle needs of all of those associated with it.
If you truly love what you are doing and are inspired to share your gifts with those around you, you will be more likely to overcome most of the obstacles faced during the start-up phase.
2.
Not having a clear vision and plan for success.
Many business start-ups are founded on an enthusiastic and optimistic future vision, and rightfully so.
While the vision and enthusiasm are going to be critical to any business start-up, they are best shelved for a few weeks after you begin to seriously contemplate the viability of your new venture.
Many businesses were destined to fail from the beginning due in large part to an overly optimistic outlook held by a founding visionary who truly believes "if you build it, they will come.
" I am not saying this isn't possible - but I am saying it isn't likely.
Successful business are envisioned optimistically in the early stages of planning and then subjected to a few weeks of intense scrutiny and realism.
This thought process is often contrary to an entrepreneurial visionary who thrives on possibilities and freedom and feels constrained by planning and analytical thinking.
Truly successful entrepreneurs understand every inspired vision must be articulated and then taken through a structured process of strategic planning and analysis.
These components often include: Writing and reviewing a business plan.
Defining the business, vision, goals, key milestones, and performance indicators.
Identifying start-up resources required, capital, man power, etc.
Identifying all the "worst-case" scenarios and having a pre-planned back-up strategy defined.
Completing a full market analysis and understanding all competition.
Defining your ideal client and ensuring your product fills at least one of their needs.
Pre-planned objectives and strategies.
An understanding of first year expenses and a realistic and conservative revenue projection Most of these detail oriented tasks will challenge the motivation of many entrepreneurs, and in and of itself could become one of the biggest reasons you shouldn't start your own business.
Business success itself consists of being able to capture inspiration and motivation and subjecting it to the often boring and monotonous systems comprising any solid business structure.
As a business owner you must be able to maintain your motivation and optimism in spite of many of the boring details running a start-up business requires.
Don't get me wrong - once the business is stable there will be ample opportunity to delegate most of the detailed work to other individuals within the company.
Most small business owners will agree during the start-up phases you will wear many hats and ultimately your business success will depend on how well you wear all of them throughout the early years of the organization.
As you contemplate the successful launch of your next business make sure you are doing it for the right reasons.
Once you are certain you truly are passionate about the business you are creating, follow the structured start-up processes and you will be well on your way to a successful and fulfilling adventure.
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