Top tips for aspiring entrepreneurs

According to statistics, 90% of start-up businesses fail within the first year. Of those who manage to make it past this point, only a further 50% will be still be running by year 5.

Top tips for aspiring entrepreneurs

According to statistics, 90% of start-up businesses fail within the first year. Of those who manage to make it past this point, only a further 50% will be still be running by year 5.

Although these stats are somewhat alarming for aspiring entrepreneurs, it is important to remember that success leaves clues, meaning we can learn from the business leaders who have and continue to ‘make it’.  

Having been mentored by several incredible entrepreneurs and successfully building multiple businesses myself, I believe that the following traits are key for getting off the starting blocks and building a business sure to survive for the long-term:

Industry
experience is a must:
The reason so many start-ups fail is because new entrepreneurs hear of or see a business doing well within a certain industry sector and decide to dive in headfirst with no clue as to how that industry operates or with any relevant sector experience. Launching a business with inside industry knowledge will ensure you get off to a faster, smoother start and are more likely to succeed in the long-term.

People
buy from experts:
People buy from people that they know and trust. This means you have to establish authority within your sector and build profile as an industry expert. This can be achieved via PR activities such as writing a book, having a podcast, public speaking and regular interview opportunities via radio and TV. Becoming known as the best in your field will drive consistent and organic growth. Just look at Lord Sugar and the Apprentice Winners as an example of how this works.

Handle
the pressure:
There is absolutely no chance that you will survive as an entrepreneur if you can’t handle the stress and pressure that comes with building a business. Being able to think on your feet, make tough decisions, work to strict deadlines and consistently motivate your team is what separates the successful from the failures. You will face more challenges than you would think possible as an entrepreneur, and it is this that makes or breaks the business owner. Staying in the game and showing up each and every day is what eventually leads to success.

Hire
slow, Fire fast:
In the early stages of running a business, many new entrepreneurs aren’t experienced in either hiring or managing staff and therefore make the common mistake in hiring the wrong person and not letting them go quick enough when they don’t work to the required standard. The recruitment policy for all entrepreneurs should be ‘hire slow, fire fast’, taking time to find the right people and firing fast if they aren’t working out. The longer you leave a bad apple in your business, the greater the negative impact will be.

Cash
is King:
All businesses need a strong cashflow to operate effectively, yet many business owners fail to get this right. When starting a business, you need to implement strict payment terms and stick to them, as when you have more cash in the company the more you will be able to invest in important growth areas like Sales and Marketing.

ABOUT THE AUTHOR
Mark Wright
Mark Wright
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