It has been two decades but, unfortunately, the numbers surrounding the small businesses and startups haven’t improved yet. Only 20 percent of the businesses make it through their first year and, in a period of 5 years, 50 percent of them vanish in thin air.
Apart from managing the losses of failed businesses, the entrepreneurs also need to take care of the stigmatization which is associated with them after the first failure. CEO of Mirza Holdings Com Mirza actually failed in eight companies, but his ninth gamble turned into a nine-figure empire with more than 600 personnel.
Turning “Failure” into a Success Lesson
After Michael Bloomberg’s Salomon Brothers business failed miserably, he utilized all his financial knowledge from it to start Bloomberg LP. Later on, he went on to become the seventh richest man in the world because he avoided his mistakes instead of sulking on them.
Every hardship in your life comes to teach a valuable lesson. It is up to you whether you turn that lesson into a life-changing experience or lose hope. As J.K. Rowling said, “It is impossible to live without failing at something.”
Avoid the “Quick Rich” Approach
Rarely, someone becomes a success overnight, so don’t think that your idea is so fantastic that it will reach you to huge heights in a matter of days. Remember that Colonel Sanders didn’t start KFC until he was in his 60s. The recipe of his special fried chicken was rejected 1,009 times before a restaurant finally gave him a chance.
Always be ready to work hard and vigilantly through your success as there are no shortcuts in the real world out there. The right amount of talent along with hard work is required to reach a certain point where your business stands out.
Being Different and Better
No idea is unique in the current financial world, so you need to strive in the best possible way to retain a good standing in the market. Remain open to all kinds of possibilities before starting a new business and, surprisingly, this always increases your chances of success.
We all have seen the mined diamonds being replaced with synthetic ones gradually because of their low-cost and vegan nature. With immense competition in the field, some of the companies are introducing cremation jewelry to increase their worth. This business is bringing them huge profits and giving a further blow to the blood diamond industry.
Dodging Under Capitalization of Expenses
While launching a business, any entrepreneur should carefully incur the costs. This is the second most common reason for the startups failing to perform, because they run out of cash and don’t find any other way to generate revenue. Nearly 1 in every 3 startups fails because of poor cash flow management.
While the founders of a successful business have a 30% chance of success in their next venture, those of failed businesses have 20%. There is not much difference, so losing hope shouldn’t be an option.Opinions expressed here by Contributors are their own.