A lot of reports show that more than 90% of all new business start-ups fail in five years or less. These reports are scary. I am an entrepreneur for instance, and I don’t want to be part of this statistics.
This led me to ask some serious questions like: Why do these start-ups fail? Are there myths that they operate on that cause these failures?
If there are, what are they and how do we get free of them?
- You need a lot of capital to start.
Many businesses fail even before they start because the owners never take the first step. And a business that isn’t started is worse than a failed one, because no experience is gotten.
Ask anybody that has been stalling in his business start-up plan, and the first thing he will give as an excuse is “I don’t have the needed capital.”
News flash: You need a good idea, much more than you need capital.
My first business was started in 2005. Guess how many million dollars I needed? None! It started with less than $50.
I equally started my first internet business with less than $10 dollars and it is very legitimate in every aspect. All I needed was a propelling idea.
Free yourself of that myth too. It is not every business that needs a million dollars to start.
- You are not meant to lose money
Starting a business does not guarantee you will make a lot of money.
Your success as an entrepreneur is largely dependent on the amount of sacrifice you can make to ensure that the business stands.
You may have to move to a smaller apartment or sell your Cadillac. Anything at all that cuts down your expenses and leaves you with more money to invest in the business.
- You will get a lucky break in 6 months.
Nothing can be further from the truth. Any business that promises to pay you double of your initial investment two weeks later is likely to be a scam.
In my experience, most businesses start experiencing real success after the first few years and then increase in subsequent years.
For instance my fish farming business was still struggling to find its feet even after 15 months. When I was starting, I was told that the business will blossom within a few months, and I will be raking in money with trucks.
Guess what? I never did. Some of the fishes ate themselves. I spent much more than I budgeted on feeding alone, and at the end I was almost begging to sell them off at very low prices.
Does it mean that fish farming is a bad business? No. But for me to succeed in it, I needed time to penetrate the market so that I can build a good customer base.
- Being an entrepreneur will give me time for myself.
Entrepreneurship seems to promise to give you all the time to live as you want. Too bad, that is a myth.
Starting a business will not give you time to act in your own reality show, unless you are Donald Trump. And of course he didn’t get there in a year. Remember myth 3.
Forget the 9-5 lifestyle totally. It won’t work here,
You will literally have to work from 9-5-9-5. Even when you seem not to be working, you will still need to be thinking of innovative ways to drive the business forward or make more sales.
Success in business borders on obsession. Until you become very passionate about it, your new business may be one of those that make up the 90% statistics.
- You need to follow the trend.
Many people erroneously go into a particular line of business because it seems to be the current fad. They believe that since everybody is succeeding in that particular business, they will too.
Sorry to disappoint you, but that is a myth too.
Everybody may succeed in it at the initial stage. But two things are worth noting.
One, you are not everybody. Two; that initial success may only last for a few months.
Instead of following the trend, follow your passion.
To rephrase it, “do what you can be so passionate about that you can’t imagine not doing it, with or without pay.”
Do it long enough, and people will be willing to pay you lots of money to keep doing it.
Money and success doesn’t follow trends, at least not for long. Get over that myth.
- Start with a bang.
Lastly, many of us have this notion about starting out with a bang. You don’t have to.
You don’t need to buy the latest equipment before opening up that plant. You can and should start small. Test the water with your toe first, before diving in for a swim.
That way, you can be in the best position to determine what works and what doesn’t.
90% of most businesses fail due primarily to self-destruction than competition. Avoiding these myths gives you a greater chance to escape being part of that statistics.