To start a business? Get ready for the ride! Three things you have to know!
I often ask my 9-year-old son, Zach, questions about business, marketing, etc. He more than surprises me with his understanding and insight. This is one of those moments. I asked him what topic he thought he should write about in this week’s article. He said, “Write about what it takes to start a business.” I reflected on this and told him to tell me more. He then proceeded to tell me to write about the “mental aspects”. Furthermore, he explained himself by saying “tell them about the patience they will need. The hard work they will have to go through.” After a moment of silence I told him that he thought he was onto something. So here you go Zach. I hope to do justice to your thoughts.
According to Brian Headd of the Center for Economic Studies, 2/3 of new companies survive at least two years and half survive at least four years. His research into the main factors that contribute to survival include an ample supply of capital, large enough to have employees, the education of the owners, and the reason for starting the business in the first place.
So what are some of those mental aspects or reasons that we need to keep in mind?
mentally strong
To start a business one needs to be mentally strong. There will be problems and tests. There will be moments of euphoria and also of despair. It’s not uncommon for a small business owner to have both experiences multiple times a day. Regardless of whether you start a business from scratch or are a current business owner; There will be days when nothing goes right. There will be days when you feel like quitting. Whose! Mr. Headd mentions in his article that of the personal reasons why he started his business, his motivation; was one of the main factors that led to their successful stay in business.
Patience
I had a successful career as a CFO at a local business, when my wife and I felt the urge to start our CPA firm. We planned accordingly, developed a business plan, and were ready to go. It started with our customers, but we believed in what we were trying to do and we were motivated. We started the company in November and then the war started. He was currently a Captain in the Air Force Reserve. My unit went on 24-hour alert in mid-December and stayed there until April. The suitcases were packed and we expected to go. Most of my unit passed. I was one of 15 who didn’t. Needless to say, I didn’t do much business during this time period. Not knowing if I was going to be there the next day, it was very difficult for me to morally try to get clients for my new CPA firm. This experience helped teach me patience. Marketing ideas may not pay immediate dividends. Relationships and networking efforts may not get you the results you hoped for quickly. Not many of us will be the overnight successes of Dot.com, and hopefully we won’t also be the overnight failures of Dot.com. You are in business for the long haul. Patience is essential. This in no way implies that you should go back and wait. In the Chinese proverb states, ‘The man who waits for the roast duck to fly into his mouth must wait a long, long time.’ You will have to work hard and it will be difficult, just don’t get impatient and quit.
financially strong
If you’ve been an employee before, you’ll understand the convenience of receiving a routine paycheck. Although hopeful, this won’t always happen in a small business, especially in the early years. Now, we didn’t know we were going to war or that it was going to be on 24-hour standby for several months, but we had planned financially before starting the venture. Even since then, reliance on a routine check has not always been there. It’s very difficult to separate business finances from individual finances, so don’t try. Instead, make a personal budget and stick to it. When times are good, use them as an opportunity to save some of your money. It will pay dividends when business is down. The number one cause of business failure is money. Plan accordingly. Prepare accordingly.
Don’t be afraid of the roller coaster we call entrepreneurship. Just hang in there and enjoy the ride, never forgetting why you’re in business.
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