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The Key Differences Between Small Business Success and Failure

Small Business SuccessWe’ve all heard the statistic that over 80% of small businesses fail in their first five years of existence. We’ve also heard the heroic success stories about entrepreneurs such as Mark Zuckerberg, Steve Jobs, Bill Gates, and others.

But we don’t hear much about how and why those entrepreneurs were so much more successful than the many failures that occur each year. Some might say it’s luck, but there are distinct differences between those that achieve consistent small business growth and those that fail.

Here are eight things that make entrepreneurs more successful than those that ultimately fail:

Small business success is not about education, money, or experience. First, success is in no means correlated with education level, starting personal wealth, or experience level. In fact, it seems from our experience with entrepreneurs that successful small business owners are just as likely to have little to no graduate training as they are to have advanced graduate degrees.

Successful entrepreneurs succeed largely due to attitude and effort. Successful entrepreneurs and small business owners are very tenacious and have a tendency to power through the various adversity and challenges that they face – especially in the early years of their startups. They know that in order to be successful, they have to work harder than most and understand that starting and growing a successful business will be harder than expected.

Realistic expectations are important. We all have dreams of what our businesses will look like when they become successful, but we have trouble envisioning the hard work and patience that it takes to get there. Successful entrepreneurs have realistic expectations about how much effort it will take and how long the results will take – and they don’t get discouraged when things don’t work out exactly as planned. Small business challenges are common, so it is important to persevere through them.

They have an ability to pivot when something in their small business isn’t working. The lean startup movement has done a good job of teaching the small business community about the concept of “pivots,” which is something successful entrepreneurs do well. Since startups and small businesses are unpredictable, successful entrepreneurs understand when it is time to pivot (or change) what isn’t working with their business, whether it be the product or service, marketing strategy, overall business model, pricing strategy, or any other part of the business. In other words, they constantly look for and apply small business lessons to determine how they can improve their odds of success.

Successful small business owners have a desire to make money (lot of it). While we all have the desire to create a great new product or service that helps people and our communities, the successful ones also have a strong urge to make plenty of money. In other words, they are not happy with moderate success or growth. Instead, they have set the bar much higher for themselves.

They have a willingness to surround with people better than them. The most successful small businesses understand that, just like everyone else, they have strengths and weaknesses. Instead of ignoring or denying their weaknesses, they hire people or bring on business partners that complement their strengths and address their weaknesses.

It’s not a matter of “if” they will succeed. It’s a matter of “how.” On one hand, entrepreneurs have the tenacity and patience to make their small businesses succeed, but on the other hand, they also don’t become so myopically focused on one potential way to succeed that they overlook other possible ways to survive and thrive.

They capitalize on luck when they see it. Most prosperous entrepreneurs will admit that luck played at least a small part in their small business’s success. In some cases, they create their own luck, while in others they know when to capitalize on the luck that comes their way. Whether it be that one customer that places that first big order, the angel investor that stumbles across the business, or the regulatory change that drives more people to your product or service, successful small business owners capitalize on those opportunities when they arrive.

Although there is no one-size-fits-all recipe for small business success, these are just a few of the characteristics that successful small business owners possess. Whether your goal is to become the next Mark Zuckerberg or to create a steadily successful small business that can sustain your financial independence into the future, chances are that most of these traits will play an important role in your entrepreneurial journey.

Learn more about other small business success factors by attending our free online Small Business Boot Camp training course. Learn more or register here.
Learn more about other small business success factors by attending our free online Small Business Boot Camp training course. Learn more or register here.


4 Comments

  1. […] Learn more by attending our free online Small Business Boot Camp training workshop. Learn more or register here. Also, read about the differences between small business success and failure. […]

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  2. […] Learn more by attending our free online Small Business Boot Camp training workshop. Learn more or register here. Also, read about the differences between small business success and failure. […]

    Like

  3. Bolarinde Samuel says:

    Final found this website

    Like

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