Do you ever dream of starting business?
Yes, I know you do.
Who does not want to start a business that will one day make a fortune that you can retire to a beautiful island …
become a globetrotter…fly in your private jet to Monaco and many exotic destinations…play rounds of golf with CEOs of corporations and attend White House annual breakfast meetings
Yes, Starting business and owning a successful one is a dream most of us will like to come true. In fact successful business creators are rewarded and recognized in our society.
Many adult american aspire to be business creators.
According to the Kauffman annual index of entrepreneurial activity the overall business creation rate was (0.27 – 0.34) % of adult Americans per month between 1996-2012
That translates to approximately over 500,000 new business owners monthly in the last decade.
Starting business is one part of business creation. The other part is to grow it into a thriving company.
Most start-up businesses fail within 5 years.
Why do a large proportion of start-up businesses fail? The answer is not as easy as you may think.
A study done at the university of Tennessee on the major causes of business failure gives us the following reasons:
- Incompetence (46%)
- Lack of managerial experience (30%)
- Lack of understanding of their customers (11%)
- Neglect fraud and disaster
When you look at the stats on business start-up failure you can see that incompetence is a major factor.
I think the leading cause of incompetence in business boils down to one thing: flawed business thinking
You see once your business thinking process is flawed then you’ll be taking wrong decisions that will ultimately lead to failure.
Rich Schrefen who is an authority in the area of business thinking believes that flawed thinking is the hidden obstacle to business success for most start up business owners.
For example, a friend of mine who wanted to start a business a few weeks ago told he felt he did not have enough capital to start his business.
However after asking him a series of questions he was able to see that his problem was not due to lack of capital. His problem is that he was not resourceful
You see you can have enough funding for your business and still end up failing-if your business model is flawed.
On the other hand, you can grow a business on a shoestring budget to a multimillion-dollar business with the right business model
What separates a successful business from an unsuccessful business is the business thinking. Your midset is important in business creation
Steve Jobs, Bill Gates, Michael Dell, Jeff Bezos and many other entrepreneurs started their business on a shoestring. They had more of resourcefulness than enough resources.
How can you avoid the flawed business thinking trap?
The answer is easy. What you need to do is to do a self-diagnosis the cause of the business failings you are facing in your business
To become good at finding the cause of your business failings -you must be honest in answering the vital questions on why you are failing in your business
How do you drill down to find the flawed beliefs you have in your business? The answer is easy. By questioning your business thinking ways . It is only than can you find solutions to the business problems you are facing.
For example if you feel that your business is not growing because you lack resources you are likely to be thinking that -if you had more resources your business will succeed, right?
What you need to do to is to see if your assumption is true.
To do so you must ask yourself:
Is the lack of resources your problem?
Are you using the resources you have effectively?
When you can honestly answer these questions, …you’ll find that you are either right. You may find your assumptions are false.
The next step is to look at other assumptions you have made about your business and test them until you can find many more false assumptions.
Once you do this, you’ll find that you will have eliminated the blocks to your business creation.
With the hidden blocks to your business thinking eliminated you’ll find that you can move in the right direction for your business, and avoid being part of the business failure numbers
That is how to overcome false thinking and grow more competent in starting a business and succeeding