After spending the best part of the last decade working with local business owners both here in Perth and abroad, a pattern has emerged that points out the hard truth.
Why do 90% of business owners fail within 5 years of opening the doors?
The failure to success ratio for successful business start-ups is a dim number with most businesses starting off with a wiz and a bang only to fizzle out after a year of hard work grinding away.
This point of this post is to teach you, and anyone who wants to create a business, the fundamentals that reside with most successful business owners.
A hint, it’s not about money, formal education or luck. Successful business owners all have a few things in common. So without any ado, let’s take a look.
Research Before Anything Else Is Crucial!
Researching your competition should always be the first step when approaching your new business model.
Having an understanding of what assets you competitors have will give you insight into what is required to beat or at least compete with them in the local market. Granted, the type of business you own will determine how you research your competition and what you look for, but none the less its a necessity.
Successful business owners don’t usually become successful by diving into a market they know little about. The ones that do, usually fall into the 90% failure category soon after.
Researching will give you an understanding of how large your market is, allowing you to project earning’s and thus, how much you can spend. Be it time or money, all new businesses will need to market. Take the time to know what you’re up against, use that research to come up with the most efficient plan.
Getting Help from a Mentor
I can not stress enough how important having a successful business owner to bounce ideas off can be for your business. This could be a family member, a local business group or a paid mentor. The price for the latter is usually high, but we are talking about the future of your business.
After talking with hundreds of local business owners, it’s 100% clear to me that the top percent who make a difference and reach their personal goals are seeking advice from people who are in the know. To get to a destination faster, ask someone who has been already for directions.
Systematise, Scale and Employ
One of the fundamental aspects of growing a business is creating systems.
Trying to do everything yourself is the fastest way to burn out and miss opportunities. Creating simple, repeatable systems in place of your daily work tasks means you can then pay someone else to do them for you. Outsourcing your admin is usually the first step, but any job can be outsourced.
If you want the life of a successful business owner who can take time off and go on holidays with the family, then you need to have other people do the work for you. That takes systems. Get them out of your head and onto paper, it doesn’t need to be perfect right away.
Doing this one thing will mean you can work on developing your business, producing a more efficient money making machine and most importantly SCALE!
Failing to do this means you will always be putting out the fires, chasing your tail and fixing mistakes.
A great book that can help you with this is “Work the System”. If your not a reader, get the audio book. It may just be the best thing that ever happened to you and your business.
Obviously, this is not everything needed for a great business to succeed. But it’s a great place to start.
If you’re looking to become the next Mark Zuckerburg make sure to check your competition out, Ask for guidance from someone you can trust and create systems. Become the owner, not the worker.
For more information about growing a local business give us a bell via the contact form and make sure to come back for more local business owner motivation, case studies and tips.