Entrepreneurs have achieved significant success. They have tasted success more than once, or over a prolonged time, so they are not just lucky. Instead, they perceive how to play the game. Having a look at their success story can help you understand the rules of the game.
Entrepreneur vs. Business Person
Entrepreneurs are opportunistic, self-confident, and courageous individuals. They are more into the realization of original ideas and changing the world than pure financial profits. They identify a need in the market and turn it into a business opportunity. On the contrary, business persons pick up an existing product or service idea and replicate it to increase financial profits and career development.
How to become successful?
P (s) = 1 – P (f)
The equation above states that the probability of success can be obtained by deducting the probability of failure from one. So, you can lower the probability of failure to increase the probability of succeeding. You have to learn from your past mistakes and those around you. When you avoid a certain path, knowing it has caused the failure, you get very close to knowing how to succeed.
There are many ways to avoid failure and excel in the business you are doing. An entrepreneur should:
Have an idea
Many people come up with different ideas on products or services to be offered. The ones that succeed in attracting the audience are the original ideas and a solution to an existing problem. It is advisable to make sure you have a well-crafted product before marching into your market. It is because starting weak and trying to improve on the fly proves very costly, not just to the pocket but also to the brand image.
All the ventures go through the cycle of ups and downs. To ensure survival in the downturn, you should not blow all your cash during the upcycle. As an entrepreneur, you should train your mind in a way that automatically disapproves of any spending that is not necessary.
Find good mentors
A successful entrepreneur learns from the mistakes of others and avoids them. You should find great mentors who are worth taking the time to see. Consulting them frequently keeps you focused. They will call you out if you indulge in wishful thinking. Mentors monitor your progress and may check your books to find any discrepancies. They will help you to think through the situations.
Bank for disaster
A worsened down cycle can become a catastrophe for a business. It will knock you off quite badly until and unless you have banked your excess cash for these times. You are advised to keep at least three months of operating capital in reserve. This can see you through the deepest of downturns.
Personally bank two years’ worth
Before you dive full-time into your venture, you must make sure you have enough resources to pay for your essentials for at least two years. It is because you may have to survive this time without a real paycheck. Most companies take around three years to stand stable on their feet. It is advisable to stay on your feet until the company is too.
In a nutshell, you are advised to follow the guidelines laid above to enhance the chance of your entrepreneurial success. We, at Oak Business Consultant, are specialized in providing consultation on these matters. We have helped many companies in building a robust financial model and business plan along with Pitch Deck. Therefore, you can visit our website Oak Business Consultant to consult with us for free.