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3 Steps to Prevent Your New Business From Failing
In recently announced public polls, it has become common knowledge that “8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn,” as Eric Burns so bluntly puts it. While the common sense reason for this might be that these businesses simply run out of cash, there’s a much more deep-rooted cause for business failure that starts long before pockets become shallow. Matter of fact, the reason usually exists before the business even makes its first dollar.
The reason most businesses fail within the first 18 months is because they jump in without knowing their outcome. You may have heard the old adage, “failure to prepare is preparing to fail.” In the business world, this statement couldn’t hold more true. There is an entrepreneurial eagerness we see in people who have a burning desire to create a business baby of their own. They’ve got this aura about them. They seem intrinsically determined, ambitious and hungry for success. Having an entrepreneurial spirit is great, but can be met with much disappointment if the right steps are not taken with loads of TLC.
When I created my coaching business, it took years of trial and error to finally start getting on the right track. Years of going back to the drawing board and revamping marketing strategies could’ve been expedited had I taken the following steps from the get-go.
So here’s how your business can become the 2 out of 10 who break the mold and experience the success you’re looking for.
Step 1: Know Your Outcomes – the magic of a ‘five year plan’
Many entrepreneurs will think up an idea and become super motivated to take action right away. While action is critical in seeing results, often time the first step, which may very well be the most critical, is missed. Instead of taking all of that energy and motivation and hitting the pavement right away, sit down and use that energy to list your outcomes. I call this milestone planning. How much money do you want and by what date? Who do you see your business affecting, and to what degree or magnitude? If you’re a coach, speaker or author how many people do you see inspiring and where do you see your business in the next five years? If you’re in the medical field, in which direction do you see your passion heading? Is your goal to own your own practise? If you’re in the real estate development field, how many structures do you see built within the upcoming five years and in which part of the world? Go as far as to write down how much income you see yourself producing each year within the next five.
Step 2: Know Your “Why”
A new report from the Global Entrepreneurship Monitor (GEM), sponsored by Babson College and Baruch College, finds that 27 million working-age Americans–nearly 14 percent–are starting or running new businesses. Perhaps you’re cut from a different cloth where the idea of being a ‘9:00-5:00 employee’ just doesn’t light your heart on fire. There’s a reason you’ve decided to go against the grain and run your own business. What’s that reason? Is it because you want your product to help millions of people’s lives become a little bit easier because of your contribution? Is it because you want to have a certain amount of money in the bank by a certain date? Whatever your “why”, write it out and paste it above your bed, tape it to your bathroom mirror, and place it on your refrigerator. Your “why” is your motivation that will serve as the fuel to keep you going even when times get tough, which they will. You’ve got to have what it takes to stay strong when the future begins to look less promising. Make your “why” so big that nothing can cause a collapse. There’s only one thing that kills a company’ it’s not running out of cash; it’s not dysfunctional employees. The one thing that kills a company is when the entrepreneur or founder gives up. If you know your “why”, you may reroute a few times along the way, but you won’t collapse.
Step 3: Create the Internal Space to Make Your “Why” a Reality
You may be familiar with the idea that your external reality mirrors what’s going on inside you internally (emotionally, mentally, physically and spiritually). That being said, it’s critical that you don’t underestimate the power of visualization. You may have heard the phrase “where your mind goes energy flows.” If you spend a few minutes everyday, I recommend 21 minutes, just focusing on the outcome and your “why”, you significantly decrease your chances of entrepreneurial failure. “Inner space” is a term that refers to all the thoughts and emotions (both positive and negative) that live inside of you. Your body and mind are your temple, and when you fill it with doubtful thoughts, such as “I’m not good enough, talented enough, educated enough”, you are sabotaging the success of your company. “Inner space creation” is all about giving your internal thoughts a daily makeover so that they shift from negative thoughts to positive ones. By visualizing yourself in the outcome you want, you replace negative self talk with infinite powerful possibilities.
There you have it, three time tested techniques that will help place you in the 20% success bracket simply by placing emphasis, time and attention on your outcome. See you at the top my friend!
