The Entrepreneur's Journey: Are You Playing in the Right League?

Why do over 90% of small businesses shut down or get pushed out within just five years? This question is at the heart of what many entrepreneurs struggle with as they start their journey. Having worked closely with over 10,000 business owners one-on-one over the past 25 years, I've noticed a pattern among those who find real success and satisfaction. It boils down to something I like to call "Knowing and Playing at Your Level."

Today's world is full of stories about successful founders, companies that grow incredibly fast, and startups that become huge overnight. Social media is full of influencers and business leaders showing off a version of their success story that might not tell the whole truth. It's easy to get caught up in these stories and think that's how it should be for everyone. But for many people who start a small business hoping it will grow big, this isn't what happens in the end.

I use a sports analogy to explain how I see and sort the entrepreneurs I meet. Just like athletes move up from playing in school to possibly going professional, business owners go through stages as their businesses grow. However, knowing exactly where you stand in this journey is key. Many people have a dream of where they want to be without really knowing where they are right now.

Let's dive in and ask ourselves a critical question: What level did we dream of reaching with our business, and where are we actually at? Understanding the true answer is more than just about having big goals. It's about really getting the game of business and what it takes to move through each stage successfully.

The entrepreneurial journey often begins at what can be likened to the "Junior High Level," where aspirations and foundational experiences converge. This initial phase is akin to a 7th-grade athlete's early forays into sports—driven by passion, external expectations, or a combination of both. Here, the parallel between young athletes and budding entrepreneurs is striking, underscoring the essence of early-stage exploration and identity formation in both arenas.

The Junior High Level: Exploration and Identity

At the Junior High Level, the entrepreneurial spirit is ignited, often out of necessity or a burgeoning desire to carve one's path. This mirrors the motivation of junior high athletes, who participate in sports for enjoyment, to meet parental expectations, or to explore their budding interests and abilities. For small business owners, this stage represents the initial leap into entrepreneurship—whether to supplement income, fulfill a lifelong dream, or respond to life's pressures.

Learning and Growing

The focus at this level is fundamentally on learning—about the business, the market, and oneself. Similar to how a junior high athlete learns the basics of their sport, develops their skills, and begins to understand their potential, entrepreneurs discover the intricacies of running a business. They navigate the challenges of starting up, from conceptualizing ideas to bringing them to market, all while learning valuable lessons about resilience, adaptability, and self-awareness.

Recognition and Peer Perception

Achievements at the Junior High Level, such as becoming a district champion or MVP, bring a sense of accomplishment and validation. In the business world, early successes might come in the form of positive customer feedback, a profitable month, or recognition within local business communities. These accomplishments, while modest in the grand scheme, are pivotal in building confidence and establishing a foundation for future growth.

The Role of External Influences

Just as parents and social groups significantly influence junior high athletes, external factors play a crucial role in shaping early-stage entrepreneurs. These influences can come from family, societal expectations, or the desire to fit into or stand out within particular identity groups or business niches. The impact of these external pressures can dictate the direction of a young entrepreneur's journey, often determining their initial business model, target market, or even the core values of their venture.

Cliques and Niches

The social dynamics of junior high, characterized by cliques and peer groups, find their parallel in the business world through networks and niche communities. Entrepreneurs at this stage may gravitate towards certain circles that align with their business focus or personal identity. These groups provide a sense of belonging, support, and validation, even as they contribute to the siloed experiences that define this early phase. Success within one's niche or community can feel significant, offering a sense of achievement and recognition among peers.

Graduated Yet?

The Junior High Level of entrepreneurship is marked by exploration, identity formation, and the initial challenges and triumphs of starting a business. Much like junior high athletes, entrepreneurs at this stage are laying the groundwork for their future endeavors, learning valuable lessons, and navigating the influences of external pressures and community dynamics. Understanding this phase's nature is crucial for any entrepreneur, as it sets the stage for the growth, challenges, and successes that lie ahead.

Navigating the entrepreneurial landscape at the "High School Level" is akin to stepping into a more competitive and complex arena. This stage marks a transition from foundational understanding to strategic growth and differentiation. Here, business owners, much like high school athletes, begin to hone their skills with an eye toward future success.

The High School Level: Competitive Dynamics

At this stage, entrepreneurs move beyond the basics, focusing on strategic planning, market differentiation, and laying the groundwork for future scalability. This phase mirrors high school athletes who dedicate themselves to their sport with aspirations of collegiate or professional play. Business owners at this level are more deliberate in their approach, emphasizing proper documentation, financial management, and market positioning.

Strategic Planning and Visibility

Strategic planning becomes paramount, akin to high school athletes focusing on training, academics, and performance to attract college scouts. Entrepreneurs at this level aim for visibility and recognition, seeking awards, securing significant contracts, and establishing a strong digital presence to bolster their brand's reputation and reach.

Networking and Niche Communities

The importance of networks and niche communities parallels the social dynamics of high school sports, where cliques and teams form around shared goals and interests. Entrepreneurs engage with groups like Toastmasters, BNI, Vistage, or Tiger 21, seeking insights, support, and collaborative opportunities. These networks are invaluable for learning, sharing experiences, and building relationships that drive business growth.

Understanding the Levels of Competition

A critical insight often overlooked by business owners at the High School Level is the recognition that, unlike in sports, businesses compete across various levels simultaneously. In the world of sports, teams are categorized into divisions like 2A, 3A, 4A, 5A, and 6A, each representing a different level of competition, resources, and exposure. Business owners, however, may not realize this stratification applies to them as well. In the entrepreneurial arena, a "2A" business might operate with the belief that it competes on the same playing field as a "5A" or "6A" business. This misconception can lead to strategic misalignments, where businesses either overestimate their capabilities or miss out on opportunities for growth and development suited to their true level.

Addressing the Challenges

The challenges at the High School Level include the pressure to stand out, balance ambition with capability, and continuously innovate. Entrepreneurs must navigate these challenges with strategic foresight, resilience, and adaptability, mindful of their business's actual competitive level.

What If

The High School Level is a pivotal phase in the entrepreneurial journey, characterized by growth, strategic planning, and the beginnings of market differentiation. Success here is not just about survival but about thriving through strategic actions, network engagement, and a clear understanding of one's competitive landscape. Recognizing that businesses, like high school sports teams, compete at various levels—and that not all are on the same playing field—is crucial. This awareness allows entrepreneurs to tailor their strategies, resources, and goals appropriately, setting the stage for sustained growth and future success.

In the nuanced landscape of entrepreneurship, reaching the "College Level" signifies a noteworthy progression for business owners, akin to athletes who have secured their place in college sports. This stage is pivotal, representing a mix of ambition, achievement, and, oftentimes, a misunderstanding of one's actual standing in the broader competitive field.

The College Level: A Diverse Playing Field

At this juncture, entrepreneurs have moved beyond the foundational stages of their business. They've navigated the initial challenges of starting up, from filing the necessary paperwork to attracting their first customers and establishing a sustainable operation. However, a critical oversight for many at this level is the failure to recognize the vast disparities within the "college" tier of business competition.

Much like the varied divisions within college athletics—ranging from NCAA Division I, Division II, Division III, to NAIA, and NJCAA Divisions, and even the California Community College Athletic Association (CCCAA)—the business world is equally stratified. Each division represents a different level of competition, resources, and visibility. The analogy extends to business, where the market and operational scale of a small, local business (akin to a CCCAA team) vastly differ from those of a more significant, rapidly scaling enterprise (comparable to a NCAA Division I operation).

Understanding Your Division

For business owners at the "College Level," self-awareness is crucial. It's about recognizing where you stand in the vast ecosystem of entrepreneurship. Are you competing in a local, niche market with limited competition, or are you striving to make an impact on a national or even global scale? This awareness affects strategic decisions, from marketing to expansion and partnerships.

Networking and Competition

Successful entrepreneurs at this level understand the importance of networking and positioning themselves against comparable or higher-level businesses. They actively seek out opportunities to learn from and compete with peers, much like college athletes who train and compete to refine their skills and achieve recognition. These business owners are the ones who manage to navigate through different markets, leveraging their unique strengths and identifying opportunities for growth and innovation.

Winning in Your Division

Winning at the "College Level" in business means excelling within your respective division. It involves understanding your market, optimizing your operations, and consistently delivering value to your customers. Just as college athletes strive for championships and personal bests, entrepreneurs aim for market leadership, innovation, and sustainable growth.

The Misconception of Uniform Success

A common misconception among business owners at this level is equating their success across the board, assuming that thriving in a smaller division is directly comparable to succeeding on a larger stage. This misunderstanding can lead to strategic missteps, overextension, or missed opportunities for genuine growth and development.

Consider This

For entrepreneurs, realizing that business operates on a "college level" spectrum is crucial for sustained success. It demands a nuanced understanding of your competitive landscape, a strategic approach to growth, and a willingness to learn and adapt continually. Recognizing your division and playing to your strengths while striving for improvement is the essence of navigating the complex world of entrepreneurship at the college level. This awareness and adaptability are what differentiate truly successful businesses from those that remain confined to their initial successes, unable to evolve in an ever-changing market.

The Professional Apex: Beyond Talent and Hard Work

The Elite Echelon

For the gifted few who push their limits and maximize their potential, reaching the professional level in sports or business is a monumental achievement. This select group, ranging from the underestimated walk-ons to the highly anticipated draft picks, represents the pinnacle of success. Their journey is not just about personal triumph but about becoming key contributors to an elite community dedicated to excellence.

A Collective Endeavor for Excellence

At this stage, the realization dawns that success transcends individual achievements. It's about contributing to a larger goal, where each member plays a vital role in maintaining the industry's prestige and profitability. These professionals focus on leveraging their talents to make significant contributions, understanding that their impact goes beyond personal accolades.

Authentic Influence and Mass Appeal

What sets professional athletes and top-tier business owners apart is their ability to attract a vast following based on genuine expertise and tangible achievements. They are not defined by titles or financial backing but by their consistent victories and the value they bring to their field. Their success inspires admiration and influence, rooted in real accomplishment rather than mere aspiration.

Setting the Standards

Reaching the professional level means transcending participation and defining the standards of excellence. It's a realm where dedication, resilience, and sacrifice are prerequisites, distinguishing these individuals from those who dwell on past glories or potential. This distinction highlights the difference between merely dreaming of success and actively shaping the future of their fields.

Impact and Legacy

Continuous Evolution and Innovation

For professionals at this zenith, the journey is about relentless improvement, innovation, and contributing to the legacy of their professions. They don't rest on their laurels but strive to set new benchmarks, inspire future generations, and leave a lasting impact on their industries.

Reaching the professional apex is not just an endpoint but a platform for broader influence, setting the tone for excellence and leadership in their respective arenas. The path from aspiration to professional acclaim is filled with challenges, but for those who make it, the rewards extend well beyond personal success, shaping the future of sports and business.

The entrepreneurial journey, akin to the progression of an athlete from junior high through to the professional leagues, encapsulates the aspirations, challenges, and realities of small business ownership. This path begins with the excitement and discovery of the "Junior High Level," progresses through the competitive and strategic "High School Level," and advances into the nuanced and diverse "College Level," each stage presenting its unique set of lessons and challenges.

The Dream Versus Reality

Many entrepreneurs embark on their ventures fueled by the success stories of corporate titans, billionaire founders, and overnight sensations. They immerse themselves in workshops, boot camps, and coaching sessions, driven by the belief that they, too, will one day join the ranks of these business luminaries. They envision leaving a legacy, acquiring wealth, and achieving global recognition. Yet, the stark reality is that 95% fall short of these lofty aspirations.

Understanding the Game

The crux of the matter lies in a fundamental misunderstanding of the "sport" of business. Many entrepreneurs focus solely on their immediate role or niche without grasping the broader strategic landscape. They neglect the importance of coaching, management, and ownership skills, critical components for navigating the transition from the "high school" to the "college" level of business and beyond. When faced with significant challenges or setbacks, akin to a career-ending injury in sports, their entrepreneurial journey is abruptly halted, leaving behind a trail of what-ifs and unfulfilled potential.

The Importance of a Supportive Network

This analogy underscores the necessity for entrepreneurs to surround themselves with mentors and peers who can provide a perspective beyond the immediate game. The journey of entrepreneurship is not just about personal achievement; it's about understanding the entire field of play, recognizing the value of teamwork, and contributing to a larger ecosystem.

Moving Forward with Understanding

As we reflect on why many business owners fall short of their dreams, it's essential to remember: "There are no right or wrongs, only outcomes and consequences to our thoughts and actions." This wisdom is not meant to change you but to offer a new level of understanding that empowers you to play at any level, position, role, or in any sport of business. The goal is to reduce failure by establishing real expectations that align with your life and the inevitable changes it brings.

Entrepreneurs must strive to move beyond the role of the star player, to think and act with the strategic insight of a coach, the team-building acumen of a general manager, and the value-creating vision of an owner. By doing so, they can navigate the complexities of entrepreneurship, overcome the inevitable challenges, and achieve sustainable success.

In conclusion, the next time you dream of your entrepreneurial journey, embrace the wisdom that success requires more than ambition and hard work. It demands a deep understanding of the business landscape, a willingness to learn and adapt, and the humility to seek guidance and mentorship. By understanding the full scope of the "sport" of business, surrounding yourself with a supportive network, and aligning your expectations with reality, you can navigate your path with confidence, resilience, and the freedom to explore all the possibilities that entrepreneurship offers.

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