Why businesses succeed (and fail)

Silhouette of Business Woman

The failure rate for new businesses is very high. Often it’s in the 80 to 90 percent range. That’s because not everyone has the mindset to run a business. Either you’re a 98 percenter or two percenter.

Ninety eight percenters believe you need to go to school, get good grades, and get a job working for someone else. Then retire 40 to 50 years later with your pension and/or social security. Two percenters believe they need to build something for themselves. Many two percenters work nine to five and build their business on nights and weekends.

If you are a two percenter you’ll want to avoid people’s unqualified opinions and focusing on instant gratification if you hope to stay in business.

    Unqualified opinions
    Often these opinions come from people trying to “protect” you from failing. They may also be jealous and believe that your success makes them look bad. In some situations it could be they don’t want you to leave and outgrow them and your current circle of friends.

    These opinions are probably coming from the mindset of a 98 percenter. To them the only way to become successful is to work for someone else. Because of that mentality it’s difficult for them to understand the mindset of a two percenter.

    Odds are if you have never been in business, there is a good chance most of your friends and family never have either. In my opinion if you want to create a successful business you should model yourself after someone who has already done it. Do what they do, and you can get what they have.

    Instant gratification
    Building a business requires you to think about the long term and ignore the desire for instant gratification. When building a business there is going to be a lot of work that needs to be done upfront. If you give in to that desire for instant gratification you will become very discouraged and frustrated when things don’t go as you planned.

If you can avoid having a short-term instant gratification mindset and are mentally prepared for the negative opinions of friends, family and colleagues, you will have a much better shot at making it.

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Guest bloggers for the TDS Business Blog.
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