Tips for building a prosperous business

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In my last article, I focused on what it takes to become a successful entrepreneur and what “success” means today. Here, I would like to delve into when to launch a business and offer some practical advice for entrepreneurs as they develop their new businesses.

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The two window theory

Deciding when to launch a business can be one of the most difficult decisions for entrepreneurs. For many, it’s a choice between a typical corporate 9 to 5 grind with the risk of burnout versus becoming an entrepreneur too early in life before you’ve had enough real-world experience.

Consider this: Most startups fail in their first year, there’s an even higher percentage of failures in year two, and only about 2% of startups that survive make it to year three.

Given the inherent risk of starting a business, there are two ideal time periods to launch a new business: right out of school in your 20s, when you’re high on energy and have no other commitments, or in your late 50s or 60s. years. , when your children have left home, and presumably you have a higher net worth. Both windows are easier times to take the risk of starting a business. But if you want to have a successful and profitable business in your 40s, you really need to put in the “sweat value” when you’re 22.

Related: Why Some Startups Succeed (And Why Most Fail)

Don’t give up fairness

Successful entrepreneurs often say, “The first million is always the hardest.” That’s true, but today’s technology can certainly help. In today’s hyper-connected digital age, an entrepreneur can launch a unique product or service online and quickly become profitable, especially if they employ the right marketing and social media channels to build a loyal customer base and brand following.

If I could give any advice to entrepreneurs, it is this: Don’t start a new business unless you know you have the drive and funds to make it to year three. And don’t give up involvement in your own company just to keep the lights on. $10,000 bills add up fast, but if you start giving away capital to pay for those bills, you may live to regret it once your business is making $10,000 a minute.

build momentum

If you are an entrepreneur, by definition, you are likely to have some failures. That is the norm. But brush up quickly and don’t let it define you. Learn from failure, and then apply the lessons to your next venture. Try to build positive momentum. Just like in sports or even betting, momentum shifts also happen in business when the stars seem to align for you. Staying focused and maintaining a high level of confidence is an important part of building and maintaining positive momentum, and that confidence and positive energy will also inspire your team.

Related: How to Create Business Momentum

Delegate as you grow

The goal of being an entrepreneur is to work for yourself and create jobs, careers and livelihoods for others. Once you’ve created a new job, you need to train someone and have them do it. If you do it yourself, you are wasting your own time and skills that should be focused on generating new streams of income for your growing business. Delegating roles and responsibilities to others will give you the time you need to generate new business and new sources of income. You can’t do it all. Scaling a business will be a huge challenge if the founder is micromanaging or trying to do all the work himself. Learn to effectively coach others and the art of delegating, and you will succeed. As a business founder, you’ll need time to work on strategic priorities like profitability, marketing, cost management, recruiting, staff retention, and communications. Remember: you manage projects, but you lead people. Successful entrepreneurs know the difference.

Have a succession plan

Finding people who are smarter than you is part of being a successful entrepreneur, while also having a long-term succession plan. Some may feel intimidated by people who are smarter than themselves and think “Well, they could take my job.” On the contrary, I want to surround myself with smarter people who can eventually do my job, in case something happens to me. There are about five people in my company who could succeed me if need be, and I’m proud of that, because I know the company has a longevity that has surpassed me. A prosperous and lasting business will be the legacy that I will eventually leave behind.

Related: 4 Succession Planning Lessons for Entrepreneurs

Always be on and ignore the noise

Nothing can fully prepare you for the ups and downs of entrepreneurship. Not even an MBA! There is such a high level of failure with startups, that it prevents many smart and talented people from even trying. But of course, if you can do it, you are in an exclusive group. But with that privilege comes serious responsibility. Any successful entrepreneur will always be available to his team, because his company is always on, which means that your it always has to be on.

And as you grow, more livelihoods will depend on you and the strategic decisions you make. Other priorities fall by the wayside, and 12-4 hour days may become the norm. When you’re so focused, motivated, and dedicated to your business, outside forces (like critics and naysayers) simply become noise to ignore. Always be on, ignore the noise, and you’ll have a strategic advantage over your competition.