Being an entrepreneur is not for the faint of heart.

According to Clarify Capital and the Bureau of Labor Statistics based on businesses that opened in 2002, 20.8% of businesses fail within the first year, 40% within the first three years, 49.9% within five years, 65.8% within ten years, 73.3% within 15 years, and nearly 80% within 20 years.

In his TedTalk, which has generated nearly three million hits, Ernesto Sirolli said:

“There’s only one thing that all the successful companies in the world have in common, only one: None were started by one person. Richard Branson didn’t. No one has. No entrepreneur can make a product, manage the money, or market the product or service."

A one- or two-person shop is a practice, NOT a business. Whatever you think it will cost, double it, add 30%, and do everything you can to ensure it requires no more than that in time or dollars.

Two of the most prominent challenges startups face are having too much or too little capital.

If you have too much money, you will inevitably spend your resources on things you soon discover you don’t need, and the capital is wasted. OR, if you underestimate your financial needs, you may run out of capital and be forced to borrow it at high interest rates or go under because you run out of cash.

If you are successful and are growing, high growth is high-risk and expensive. It is a rare enterprise that can grow on the business’s cash flow.

You must raise capital through traditional financing resources or give up equity; lenders will decide if you are risk-worthy based on the following:

• Your financial and business history
• A solid business plan and financial projections are tied to realistic projections and assumptions.
• Collateral to cover the loan if you can’t meet your payments or the business fails, your ability to repay the loan.
• Plus the fire in your belly, because, ultimately, they are investing in YOUR ability to execute.

Successful entrepreneurs recognize a company can’t control the winds of the market or the economy, but they CAN adjust their sails and stay afloat and prosper.

Entrepreneurs are responsible for making hundreds of decisions that impact the lives of their employees, their families, customers, and stakeholders.

Success requires:

• Being a risk taker (but not reckless);
• Decisiveness (without rushing to failure);
• Balancing the needs of the business (alongside meaningful relationships and a fulfilling life).

A commitment to being a lifetime learner goes with the territory.?

Over time its essential to learn how to:

• Identify and respond to market trends.
• Overcome any fear of mastering your financial information.
• Manage your cash flow and the margins that generate profitability.
• Lead or manage people.
• Hire, inspire, and fire people who either lack the skills you need or are interior terrorists.
• Hold yourself and others accountable.
• Have outstanding customer Service
• Establish excellent public relations within the industry and the communities you serve.
• Build vital relationships
• Create a company brand and culture that attracts happy customers willing to pay for the products or services you offer in an ever-changing economy and market trends.
• Price for profitability
• Understand the continual need to upgrade software and thrive on social media.
• Navigate each stage of growth- what gets you to one stage will not get you through the next.
• Seek feedback from your team, clients, the marketplace, and your peers; becoming a master of listening and paying attention.
• Surround yourself with innovators, a good coach, and thought leaders.
• Focus on your priorities and manage your time to avoid burnout.
• Communicate with clarity and authentically.
• Lead by the behaviors you exhibit and tolerate.

If you continue to meet the challenges of growth, you will learn humility and that arrogance and the ego are not assets.

I tip my hat to all the entrepreneurs who have taken on the challenges of entrepreneurship they face every day and leave their mark on the economy and the people they touch.

To further explore your entrepreneurship journey, please email [email protected] to schedule a call.?

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