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Do you know the right way to starting business?

Do you know the leading management mistake in starting business?

Do you know too much money starting a business may cause its failure?

 

There is a right way to start a business that many entrepreneurs don’t know. That is why over 40% of start-up businesses fail within the first five years of  operation

However, when you drill down to why most entrepreneurs fail to start up a business. The answer lies in the way an entrepreneur does business.

This means that your success in business rests and falls on you. Your business is a reflection of your mindset.

When you have the right mindset towards starting business-then, you’ll produce the right results to grow your business.

 

The mindset for starting your business

What’s the right mindset to start business? The answer is you need to think like an entrepreneur.

Why? Because entrepreneurial thinking  is what you need to succeed in business

In his book The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It
, Michael Gerber found that the major reason why most small businesses fail is because of the owner.

Gerber found that most entrepreneurs start businesses with an employee mindset.

In fact, he concluded that most business owners started their businesses for the wrong reasons.

Gerber concluded that most small businesses failed. Because the owner failed to make the shift from employee thinking to entrepreneurial thinking

 

You need to start thinking like an entrepreneur to succeed in business. This skill is important because entrepreneurs think differently from the way employees think

 

You must start to think like an entrepreneur at the same time eliminate employee thinking

 

The following table shows how entrepreneur thinking versus employee thinking

 

Entrepreneur thinking	Employee thinking
Abundance oriented	Scarcity oriented
Views spending in his business as investing for growth	Treats all spending except income as expenses
Prefers self employment	Considers self employment as risky
Values his freedom	Prefers job security
Expect to fail and learn from mistakes	Afraid to make mistakes.
Have courage so takes smart risk	Paralysed by fear of taking risk

 

 

Develop Abundance thinking vs. Scarcity thinking

Most entrepreneurs are abundance oriented. They realize that the world is full of opportunities.

Successful entrepreneurs never allow the lack of capital hinder them from starting a business.

An entrepreneur is resourceful, which means he will find an out-of-the-box way to start his business.

On the flip side a person with an employee mentality is scarcity oriented. That is why employees never make the transition to becoming business.  

In my experience of dealing with people who want to start a business, the main excuse they use for not starting business is lack of capital

 

The truth is you need capital to start up a business. However if you are resourceful you can easily raise money or start on a bootstrap.

 

Michael Dell started Dell Inc. from his dorm room with a $25000 savings and loans from friends. Dell did not allow lack of capital to stop him.

 

You must begin to think in outside of the box ways when it comes to starting your business.

Remember it’s your resourcefulness that matters.

Be Resourceful and you’ll start to see opportunities to raise capital for starting your business

 

 Invest in your business building skill

Most employees think all items are expenses except their income. Entrepreneurs have a different view about spending money starting a business.

Most entrepreneurs view money spent in a business for future growth and expansion as investment.

The Lack of knowledge and experience are factors cited as the reasons why most start-up businesses fail.

My suspicion is that most of these businesses fail because the owners did not shift their thinking about spending money. That is on the critical skills needed to grow their business

For example, a person with an employee thinking views spend money attending a marketing seminar because he thinks it’s an expense.

This is a costly mistake because a business that cannot market itself will fail to attract the right customer. As a result the business will fold up from poor sales.

 

Choose financial freedom instead of job security

Ask 99.9% of employees who whine that their jobs suck… What’s stopping you from quitting your job?

They will most likely answer with a statement like “ it pays the bills”…. or say “ Business is risky”…

You see when you think about job security most of the time …you’ll find it difficult to start a business.

An employee wants certainty so he finds it difficult to accept the idea of starting a business, which has no guarantee of success

 

An entrepreneur wants to be his own boss. He knows that starting a business is risky but he is willing to make the sacrifice needed to build a business.

An entrepreneur desires freedom. Freedom to think, choose his own hours, spend time doing what he really loves to do

You must start thinking about choosing freedom instead of security in order to succeed in starting business.

 

Develop courage

The main reason most people stay in a rotten job they hate is because they are afraid of quitting.

Most employees live in fear of the unknown. They are afraid that if they live their job to start doing… what they really love to do …they may fail

An entrepreneur thinks about failing differently.  

Entrepreneurs anticipate failure but never allow mistakes to stop him from starting a business.

Entrepreneurs view making mistakes as part of a learning process. They make mistakes and learn from them

There is one word for acting despite your fears: courage

You feel the fear of failing and act anyway.

You must not take making mistakes personal if you want to succeed in business.

You must from this day forwards…view making mistake as part of the learning curve you have to go through… in order to succeed in business.

 

The bottom line about starting a business is you need entrepreneurial thinking . 

When you approach starting your own business with an entrepreneur’s mindset… you’ll sidestep the high failure rate most start-up businesses have.