Six ways to keep your business alive
Your start-up is more likely to succeed if you commit to a "failure is not
an option" mindset.
Starting your own company is a big challenge,
but staying positive could be an even bigger struggle.
No matter what kind of business you have, if you are not committed to a
"failure is not an option" mindset, you are setting yourself up for
failure, says Neil Anderson, president of The Courage Group, a consulting
firm for entrepreneurs.
Indeed, only two-thirds of new small businesses survive at least two
years, and just 44 percent survive at least four years, according to a
study by the U.S. Small Business Association.
To avoid becoming another start-up casualty, the right mental state is
crucial.
So when the bills begin to pile up, and clients or customers are few and
far between, don't be tempted to throw in the towel. Instead, keep your
mind and mission on track.
Anderson offers these tips to help stay out of the failure trap:
Go mental. One of the most important elements to starting a successful
business is being mentally prepared. Of course, skills, actions and good
old-fashioned luck are also important factors, but it all begins with the
right frame of mind.
To that end, stay away from people who are negative and may try to bring
you down. Anderson admits that he fired his own girlfriend in the early
stages of building his business, because of her pessimistic attitude (the
relationship didn't work out either).
She would say things like "you used to make so much more money working for
someone else," Anderson explained.
People can be negative simply because they are jealous that you had the
courage to follow your own dream, not just talk about it, Anderson
asserts.
Virtual reality. Although there will be many ups and downs, a light does
exist at the end of the tunnel, and it is bright. By visualizing success,
your actions will become more confident. And increased confidence breeds
success.
Anderson advises entrepreneurs to think about why they started a business
in the first place. Perhaps going back to work for someone else is not an
option. In that case, just reminding yourself of the alternatives: being
at the mercy of others controlling your life, playing corporate politics
or reporting to incompetent bosses should be sufficient motivation to keep
your mind right.
It's all about sacrifice. A big component of the "failure is not an
option" mindset is knowing that certain personal or financial sacrifices
will need to be made along the way in order to achieve your dream.
Entrepreneurs who have made sacrifices and prospered did so because they
realized early on that starting and building a great company comes with a
price.
Risk is not a four-letter word. Keep in mind that success comes to those
who recognize risk, are unafraid of it, and will execute on their ideas.
If you are risk-averse, your chances of business survival will probably be
slim.
"I cashed in all my chips, my 401(k), whatever I could... I was willing to
bet it all," Anderson said of his consultancy firm, which he got off the
ground in 2001.
A hungry dog hunts better. "My father said that to me at the outset,"
Anderson said. When clients or customers are few and far between and money
is tight or nonexistent, successful past and future entrepreneurs will
always find a way to drum up another sale.
When times get tough financially, you really have only two choices:
decrease your expenses or increase your revenues.
A roadmap will lead you to success. A business plan, which is a written
description of what you are going to do and how you are going to do it, is
the entrepreneur's roadmap. It forces you to think about the entire
operation and come to terms with the businesses strengths and weaknesses.
Entrepreneurs who do their homework increase their chances for business
success.
"Don't look at it as a hassle or burden, look at it as an opportunity to
survive," Anderson said.
POSTED: Jan 19, 2007
