The first-year failure rate of startup businesses can be quite high. Some people will tell you it’s as high as 90%, but there’s a little bit of good news. Recent research indicates the real statistic is actually around 25%.
This means the majority of new businesses make it to their second year. At the end of the second year, only about half are still in the battle. A good number will make it to their fifth anniversary, but others will disappear long before then.
What’s the difference between businesses that succeed and those that don’t? There are many different factors, but one key aspect is the entrepreneurial mindset.
When people set out to create startups, many of them don’t know much about entrepreneurship. It takes a certain kind of person to see a business through its initial phases.
The good news is you can develop the right kind of mindset to steer your business to success. Use the tips in this guide to cultivate your mindset and help your business thrive.
You Need to Think Big but Act Small:
You’ve likely heard all about entrepreneurs who have visions. They know what they want their company to look like. They know what they want to achieve with this startup.
This kind of clarity is important when you start a business. It gives you a definition. You can then take it to your clients and say, “This is what we do.”
When it comes to your vision, it’s okay to think big. Where do you want the company to be in five years? Maybe you want to sell it as a billion-dollar tech firm, or you’ve decided you want to be a leader in your field.
Many startup entrepreneurs try to scale their actions to align with these big dreams. They end up overextending themselves and the business goes under. The right business mindset will allow you to act on a smaller scale while still thinking big.
The Entrepreneurial Mindset Leaves no Room for Fear:
Another problem many startup founders run into is fear. They continue to do things the same way they’ve been doing them, and they never take a risk.
The entrepreneur mindset, on the other hand, commends calculated risk-taking. You may not want to invest in a fancy office building or buy into a company who has never posted a profit. Those are bad business decisions.
True risks are those allowing your business to grow. Diversification is often a great example of a risk, but it can pay huge dividends.
If you’re too risk-averse, you could be missing out on opportunities. Instead, entrepreneurs should develop courage in tandem with good business sense. You need to be selective, but you should also be fearless.
Learn to Delegate:
The entrepreneur mind is sometimes led to believe everything rests on your shoulders. After all, you were the first employee. You’re the one with the vision.
This attitude can lead to a few different problems. One of the first is burn-out for you. If you feel the need to look after every aspect of your business, you’re going to end up stressed and overwhelmed.
Another issue can then be unfinished projects and missed deadlines. If your business is even halfway to successful, you should have more work than you can handle on your own. If you don’t ask for some sort of help, you won’t be able to deliver on your deadlines or project parameters.
Entrepreneurs must learn the delicate art of delegation. You don’t need to do everything yourself. In fact, one of the best things you can do is learn to ask for a helping hand when you need it.
Love What You do (but Hate it too):
You’ve heard people tell you to “do what you love.” This career advice often makes the rounds. It’s one reason people choose entrepreneurship over a 9-to-5 job.
The entrepreneurship mindset suggests loving what you do, not necessarily doing what you love. In fact, you might want to develop a solid love-hate relationship with your business.
Starting your own business is full of ups and downs. There are going to be bad days almost as often as there are good days. If you’re turning a passion project into a business, you may find your enthusiasm wanes.
That’s okay. One of the pathways to success is actually selling the business. If you’re so in love with the business you never want to sell, you may not focus on building value within the company.
Dreaming of the day you can sell the business and walk away can actually help you on the road to success. Your focus will be on building value, which in turn means building a better business.
Set Some Goals:
This is staid advice for those who want to develop an entrepreneurial mindset. If you’re going to create a successful startup, you need to have some goals.
You have a vision, which might include selling the business in a multi-billion-dollar deal. Or you’re dreaming about new innovations or becoming a leader in your industry.
Your vision doesn’t tell you how to get from startup to success. Goals, by contrast, are realistic, achievable milestones.
Learning how to set objective goals is part and parcel of good entrepreneurship.
Believe in Yourself:
One of the most challenging parts of entrepreneurship is believing in yourself. Many people doubt their ability to get a business off the ground. They may believe they don’t have what it takes.
You can change these beliefs, which is fundamental to developing a business mindset. You can view here one way to begin changing self-doubt into self-empowerment.
Get More Advice on Entrepreneurship:
The entrepreneurial mindset is a key factor, but it’s still just one ingredient in success. If you’re looking for more great entrepreneurial advice, check out our blog. We’ve got tips on everything from marketing to raising business capital.
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