Areas to focus on, avoid, and when to collaborate.
Section 1. Top 3 Reasons why Entrepreneurs Succeed.
Entrepreneurs are intimately familiar with their products. They are also well-versed in their market. However, it takes more than knowing your product and market alone. Being a successful business owner takes hard work and action, knowing how to take advice from others, and a keen vision with a deep desire to succeed. Here are the top 9 amazing points to becoming a successful business owner.
1. Vision and Desire
Vision and desire are two of the most critical aspects of success in any field, let alone private business ownership.
Having the vision to create something new or to do something better is the heart of it all. Having the ability to see what something can be, looking past what is, is a gift. Having the desire to turn your vision into a reality is a passion that belongs only to a few.
Having a vision means you are someone with the ability to look past something’s current state. You can see what something can become. You can also see what needs to be done to make something special and different than what it currently is. This is true with creating something brand new, or, taking something that currently exists and making it better.
From starting a new business that never existed or starting a franchise and making it really stand out from other local competition, having a vision is the first step. Having the desire to turn a vision into reality is what separates dreamers from those who experience real success.
2. Ask for and Listen to Advice
Asking for advice can be hard, but it’s necessary for success. Listening to that advice is how successful people gain an advantage. However, there are other reasons that may surprise you.
Asking for advice from others is necessary because it provides you with a fresh and quite possibly different viewpoint. Creating alternate ways of looking at something can change your perspective drastically in some cases. And when it comes to all the points of becoming a successful business owner, broadening the way you look at your products, company, and how you market can quite literally change everything.
Now, taking that advice and acting upon it can also create challenges, especially when you already have a strict mindset on the subject. But having the character and fortitude to act on prudent insight/advice can not only change the direction of your ideas for the better, but it can also eliminate certain obstacles and reduce the time for you to be successful in some cases.
3. Action Oriented and Hard-Working
Being action-oriented and hard-working are similar in nature, but require different traits and understanding. Being action-oriented means having not only the motivation to act but the willingness to overcome
fear and hurdles via action, which are key components of success. With this attribute, we build confidence and develop courage. This increases better decision making which in turn builds character, perseverance, and overall success. Being action-oriented also means knowing when to act upon opportunities when they present themselves.
Being hard-working is exactly what it says – to work hard. And believe me, it takes a lot of hard work to become successful, but in the end, it is worth it. The extra effort is not always more hours but also working hard to educate yourself in delegation and managing time
Understanding these key differences and similarities provides a solid foundation to build your success.
Section 2. Top 3 Reasons Why Businesses Fail.
According to the Small Business Administration (SBA), 49.7% of businesses fail within the first 5 years. This is because starting a business from scratch is high risk. There are several reasons for this risk, including viability, capital, and mismanagement due to a lack of training and experience. Here, we’ll take a closer look at the top 3 reasons why small businesses fail.
1. No Market Viability
To put it plainly, too many budding entrepreneurs believe they have a great idea for a product or business venture. However, as it turns out, many of these products or ventures lack market viability.
What exactly is market viability? According to BigCommerce, “Market viability refers to the business potential of a specific market. A market viability analysis will help you determine whether starting a business in that particular market makes sense financially.”
Remember, just because it’s a good idea doesn’t mean it’ll sell once it’s out in the wild.
2. Cash Flow Issues
Capital is one thing. Cash flow is quite another. It’s one thing to have the money to start a business but keeping it going means you have to look down the road at how long it will take before you are cash flow positive. It also means ensuring that your business is making money on its own and able to pay for itself including all overhead and payroll in an adequate amount of time.
Ensuring your business venture and products have market viability goes a long way in helping to ensure that not only your investment but your hard work will pay off.
3. Management Mistakes
It’s easy to make mistakes when you’re managing your very first business. You may understand your products and vision. You may have the desire and the willingness to work hard to make your dream a reality. But, understanding the ins and outs, scope, and difficulties of managing a new business can be next to impossible without training. And unfortunately, most business ventures started from scratch don’t come with training manuals. Instead, they come with trial and error. Now, let’s take a look at overcoming these hurdles.
Section 3. Top 3 Reasons Why Franchises are the Right Choice
Becoming a business owner and working for yourself is a dream many Americans share. Starting a business from scratch with virtually no premarket product testing, thorough market viability assessments, and no management training makes any investment extremely risky. It also sets the scales of failure against you. However, franchises check the box in nearly every conceivable way, shifting the scales from inevitable failure, to nearly guaranteed success.
1. Proven Market with a Defined Customer Base and Brand Awareness
Starting a franchise alleviates the need for comprehensive market viability while making any investment far less risky. This is because franchises are already established. They already confirm market viability while coming with a built-in and defined customer base. Because of this, you mitigate many challenges that come with pre-startup, as well as, post-launch.
Some of the pre-startup challenges include performing all market testing, such as market viability testing to make sure there is even a market for your product, brand testing (which can be extensive) to test logos, marketing pitches, pricing structures, etc. You must also perform demographic research to understand who your target audience even is.
There is a lot that goes into pre-startup testing. And post-launch is no better. But a franchise has already performed all of this research, tested it again and again, and evolved over time to become a successful business model. To put it simply, the work has already been done for you.
2. In Business for, but Not by Yourself
Launching a franchise is exciting! It means that you are finally working for yourself. Everything you do is benefiting you, your family, and your future. And although you are in business for yourself, with a franchise, you’re not in business by yourself.
This is one of the most beneficial aspects of owning a franchise. The corporate owners of the brand want you to succeed and they provide you with the tools needed for that success. This includes promotional materials, timed specials, and numerous avenues of brand promotion.
Remember, a brand-new business must find its customers, and this can take a hefty investment in marketing and advertising. This investment is risky and comes out of your pocket. But, a franchise is already running marketing campaigns in all the right places to help ensure that the brand acquires the widest reach possible to obtain the most awareness and growth.
You simply benefit from all of this. You can now forego the years of training, accumulated knowledge, and all of the testing needed to perform at such a competitive level.
3. Proven Game Plan: Fine-Tuned processes, Systems, Training, and Coaching that Eliminate Pitfalls
Corporate also provides new franchise owners with the training necessary to manage their businesses. They will help you to know your business inside and out to be as successful as possible.
With a proven game plan, much of the risk and pitfalls associated with starting a new business are mitigated, and in some cases, removed altogether. This includes creating brand awareness, finding customers, and gaining their trust.
A franchise provides you with proven systems, processes, and training that only stand to increase your knowledge while completely eliminating countless dollars worth of pre-market testing, manufacturing, and promotion.
To put it in the simplest terms possible, a franchise is the most affordable, least risky venture available, while still offering the most profit and freedom for you and your family.
Final Thoughts
Putting together the top three entrepreneurial success characteristics and the right franchise company puts you far ahead of the rest when running a successful business. It also helps you overcome the top 3 reasons why businesses fail. Rockwell Birch will match you with the perfect franchise to maximize your chances for success. We’ll discuss your options, budget, and most importantly, what you are passionate about. Contact us today and take the first step in achieving your dream of working for yourself.
by Rich Groark, CFC with Rockwell Birch