Everywhere you look these days, there is talk of entrepreneurship and people starting their own businesses.
There's definitely many benefits of running your own business such as flexibility, income, ability to create an asset, and skills development.
Ask any start-up or business owner and they will tell you that nothing will develop and challenge you like entrepreneurship.
But here is the thing. Most people that take the leap won't make it in business.
It's not me saying that. You just need to look at the statistics.
Over 90% fail within the first 5 years. And this is around the globe.
The problem is that most people have no clue what it takes to become successful in business.
So is the there a formula for success in business?
Not entirely sure, however, I believe the below are the top 8 requirements to maximise your probability of success in business.
1. Mindset- more than just a necessity, this is absolute mandatory. So what do I mean by mindset? In my opinion it includes the following as an absolute minimum - courage, persistence, passion, flexibility, consistency, dealing with fear, tenacity, a healthy self-image, supportive beliefs, productive habits and not tolerating your own bullshit stories.
2. Business Acumen- you have to be good at what you do. You have to know your stuff, provide a great service that people want, need, and can afford.
3. People Skills- you have to have good relationship building skills, emotional intelligence and communication skills.
4. Marketing & Sales - you have to be able to market and sell yourself and your product/service. Both are essential. This is where a lot of people fail.
5. Financial skills - you have to possess at least a basic knowledge of how to handle finances, including handling all the financials statements, banking, billing and accounting. If you can't tell your revenue from your profit or you don't know how to break even, sooner or later, you will be in trouble.
6. IT- the technological side of things. You have to know the fundamentals of IT, whether you like it or not.
7. Health - You need to have high levels of energy and physical health. You can't afford to be sick or tired. You can't be overwhelmed or scattered. You have to be emotionally strong and ready to take on the challenges. And you must have stability and support on the home front.
8. Money support - you need to have enough money whilst you are building a business to keep up with the expenses because in the first few years your outflows are most likely going to exceed your inflows. You also need to have some emergency funds for any unexpected contingencies.
So there you are.
The above list is not exhaustive by all means and certainly not designed to discourage.
It's simply to inform you about what it takes to become successful in business.
I haven't included 'operations' and 'administration' because I firmly believe that if you take care of the above 8, you will make enough money to outsource the rest.
To your success!
- Ron Malhotra