It should be an inalienable right to pass down the family business to your son, the same way your father did. As it's the glue that binds generations.
However, the new norm is closing down businesses within two quarters. Before an heir is born and raised, the business is already on its deathbed.
The average life span of a business is growing shorter and shorter with every generation, despite all the improvements in technology.
As per experts
, the average life span of a business is 3-5 years.
…has been the new bar to success. Most businesses are short-lived. They do it too fast, to a point where there is no more future for entrepreneurial books.
If you're reading this, business sprinter, look away as I spill your reasons for failure:
- You have no plan. None, with no vision and no aim. You're riding the wave, but you don’t know where your destination is. With time, you get lost in this deep, red business ocean, surrounded by sharks—banks and Shylocks. And with no plan to refer to, you call it quits.That's why you must start by planning for the endgame before you venture into business. Plan then go to war, not the other way around.
- You only prepare physically, never mentally. That trips you and you roll all over as you tap out in pain after a few psychological hurdles. Sure thing, business is all about your psychology. And it will test you with both good and bad times, to see if you'll break. And if you're not in the right physical frame, you'll go under within 3-5 years.As times get tough, you need to fasten your belts and hold on tight.
- You overdream. And over-project cash flows
. Putting too much pressure on the business for impossible returns. And when the flying saucers fail to appear, you weep. And quit. With your head buried deep in their hands, you avoid the humiliation by closing your business.What is the remedy? Be realistic, have patience, and give the business time to grow organically.
- Poor PR. Just poor. You make enemies faster than you recruit new friends. You take things personally—to heart. This destroys all your customer base, together with your reputation. Then you act surprised when you end up with no buyers. Don't be.Learn how to communicate, be sociable, and have a high-stress tolerance. This builds relationships and bonds that last longer. In the end, it increases the lifetime value
of your customers.
- You can’t set business and personal boundaries. Hence, you end up milking your cash cow dry for your personal expenses, which is bad business. Misuse of business equipment and not recording also belong to the same category. All this is the recipe for a business owner on his way to failure.And before you know it, your business and life are one big circus; where the circus owner lives in his cages. As a remedy, get to know that you, the business owner, and the business are separate entities. Thus, treat them as such.
- You don't know your customer. This is a situation where you start looking for a customer after you've created the product. This is a common mistake among mediocre business people, amateurs. Not knowing who needs your product and why they need it will cripple your business's soul in months.Therefore, first focus on what problem the business is solving. Identify the target customer before you start creating a solution. ?
Everyone can't attain longevity but only those who choose to, and you can choose to by avoiding the obstacles above.
- Reading best-seller business and philosophical books.
- Looking for a mentor who has been in the game and has done it.
- Staying humble. Think big and act small. The reverse, thinking small and acting big, acting as if you’ve made it, is your recipe for failure.
- Staying hungry. Always seek ways to improve every day, and treat every day as day one.
- Starting small. Then look for gaps that will make you grow. And grow into what you dreamt of. Starting small gives you room to grow, and growth is all about longevity.
- Knowing why you started. The German philosopher, Friedrich Nietzsche
, stated that “Whoever understands the why, can bear any how”, therefore, know the why of your business.
To cement your chances of success through longevity, it's best if you read Start with Why by Simon Sinek
. And get to know why and how your grandchildren will enjoy the fruits of your business.
It's when you stay long enough that things compound, and you gain a better understanding of what you're doing.
Make sure you last longer in whatever business you're in. Most importantly, pass it on to your children.
