There are certain concerns that stop many people from starting a new business. Some are valid concerns and must be weighed carefully but others are actually a myth or “learned” intelligence that you have internalized and carried with you over a lifetime. Remember that you are raised and taught to think as an employee would think. Not as an entrepreneur would think. Let’s explore some of these concerns a bit – I want to give you my take on them. First off, people say that 90% of businesses fail within the first three years. Sadly, this is true. However, it is not the full story here. 90% of businesses fail in the first few years because of mistakes that are made by the person starting the business. The more common mistakes they make that cause them to fail include the following:
- They design their business model incorrectly – they start their business by making a business model and going after it but sometimes it actually makes a bit more sense to take more time to see what’s really happening out there and start to make a few moves out there and once you understand the landscape a bit better then build your business model and target it and go for it.
- They over-leverage themselves financially to get it started. You really don’t need to go into a lot of debt with a business up front because that just sucks your working capital which you should be nurturing very carefully to give you as long a run as possible with the money you have when you start the business.
- They go in with an attitude of investing in the business heavily first to hopefully get a return on their investment in a year or two
- They have absolutely no idea how to attract people to purchase their products or services that they sell when they start. They have a good product, they think its going to make them a lot of money, but they have to realize that they have to convince other people to buy the product itself as well and that is something where many people just forget that part of the equation.
- People may be comfortable building some products and services but they are absolutely terrified of marketing their creations to others and I had to break through that wall myself. When I first started working online and trying to sell my products and services to people, I got a very quick realization how difficult it was to actually motivate myself to put my products, my services, my reputation out there in front of others and ask somebody to buy from me. It’s a very tough thing to learn how to do. Another thing that stops people – I can’t think of a new idea for a product or service that will differentiate me in the marketplace. Well here’s a truth. You don’t need one.