Around half of new companies fail within 24 months of their launch. So, what are the traits that the other 50% of businesses have that help them pull through the first two years and onward to success?
The siren song of entrepreneurship is heard by many. The lure of being your own boss, deciding your own working hours, and focusing on what you’re truly passionate about is hard to ignore. We’re no longer in a world where you work for the same company for 30 years then retire at 60 with a full pension. No, that’s long gone, and it’s not a bad thing. Many millennials have lost their rose-tinted glasses when it comes to looking at the corporate world and nine-to-five jobs. The rise of the internet has made working from home – and within your chosen hours – completely possible. Not only is it possible, but many companies were forced, kicking and screaming, into the future of work from home culture in the last two years because of – yes, you guessed it – COVID-19. The pandemic, along with the resulting spike in unemployment around the world, had many people listen more closely to, and following, the call of entrepreneurship. However, in South Africa, many new businesses sank. According to an April 2021 report from Statistics South Africa, there was an increase in business liquidations in the country over the last year. This spike in company failures has been attributed to the COVID-19 lockdown. Lings Naidoo, co-founder of BeyondCOVID, expanded on this to Business Tech, ‘Our research has shown that smaller, micro, and medium-sized businesses, in general, are 26 times [more] likely to close their doors in times of economic upheaval than their corporate counterparts.’ Which brings us to the first trait of a successful business, and by extension a successful business owner:
ADAPTABILITY AND RESILIENCE
Successful new businesses don’t get complacent. The business landscape, your client base, the whole world doesn’t stay stagnant. Things change. What people want change. In order to be successful, you – as a business owner – have to be willing to see the change, accept it, and pivot when needed. A willingness to learn and innovate is essential. When you are interested in trends and continue to do market research, you can discover new ways to get clients and retain existing ones. This continued learning breeds resilience and adaptability. When you know what’s going on around you, you can meet the challenges head on. After all, knowledge is power.
THEY DON’T GET DISCOURAGED BY THE STATISTICS
When it comes to starting a new business, it’s essential to know the facts; not to be discouraged by them, but to learn from them. So, why do so many small businesses in South Africa fail within the first two years? One of the most common reasons that new businesses fail is because they lack vision. Sustained, long-term success isn’t just about serving a client today, it’s about knowing how the actions you take today are going to lead you to where you want to be. ‘When you don’t have a clear vision,it’s like taking a road trip without a map. You don’t know where you are going,so you end up wasting a lot of time, money, and energy trying to get on the right path. A well-defined vision will help keep you on track,’ explains Forbes in ‘Eight Common Reasons Small Businesses Fail’. However, you can’t just have a vision. Just dreaming about making millions of rands and jetting off to islands on a whim isn’t going to get you into a plane seat. You’ve got to have a plan.
THEY HAVE A PLAN
Dreams are great. They allow you to visualise how you want your life to look like. But, you can’t stop there. Dreams need to be developed into goals, and then these goals need to be developed into a plan. There are a lot of different plans you can put together for a new business, but let’s just focus on two of the most important ones: A business plan and a marketing plan. Your business plan is an outline of your strategy. It details the steps you need to take to reach a goal. And, after putting your plan together, it should convince you that your idea can be a successful venture.‘… at a minimum, your plan should be as objective and logical as possible. What may have seemed like a good idea for a business can, after some thought and analysis, prove not viable because of heavy competition, insufficient funding, or a non-existent market,’ says Inc. Magazine in ‘How to Write the Perfect Business Plan: A Comprehensive Guide.’ Part of your overall business plan is a marketing strategy. Marketing is a huge part of business success. If people don’t know about your business, how will you make it a success? Get clear on how you’re going to sell your product or offer. Dive deep into the demographics of your ideal client to find out how you can get your message in front of them, and how to make the decision to buy from you a no-brainer. ‘Without focusing on your target, you will be wasting time, energy and money, casting too wide a net. The goal of identifying your target market and working to meet their needs is the development of customer relationships and loyalty,’ says Small Business – Chron on the major elements of a successful marketing strategy. Does every successful business out there have a business plan? No. However, getting a plan together can greatly improve the chance you’re going to pick up the next trait.
ACTION IS THE NAME OF THE GAME
Successful business owners take action. You can dream, you can set goals, and you can plan out every minute of your day for the next two years, but if you don’t actually take action, all of it will come to nothing. You’ve got to actually take the steps. You may be thinking, ‘Well obviously’, but the thought of following through on plans can cause paralysing fear in many. If fear has overcome you in your start-up, you’ve got to dive into the fear and realise what’s behind it. Is it a fear of failure? Or a fear of success? When you’re more self-aware, you recognise the excuses you tell yourself for what they are really doing: Holding you back from the life that you want. ‘Recognise when you are using excuses and figure out how to overcome them. Too tired? Adjust your schedule so you can get a better night’s sleep. Not enough time? Assess your priorities and find out where you can make time. And the next time an excuse comes to you, make the decision to not give in to the little voice telling you ‘No,’ because it won’t help you grow in the long run,’ says empowerment coach and speaker Tony Robbins. Have you heard the seductive entrepreneurship siren song lately? Sure, new businesses have drowned in these waters, but don’t let that stop you. Learn from their mistakes and carve out your own spot in the world of business.
Words by Paula Rabeling
Photography: Pexels, Unsplash
