Categorized | Business

Success in Small Business is Not a Game of Chance

By Tom Irmen

The odds for a successful new business launch are abysmal, but they don’t need to be.  Your odds increase significantly depending on whether you view your startup as a game of chance or a solid business opportunity.  If you believe that your potential for success will come down to a roll of the dice or your celestial sign, you might want to hold on to your day job.

The same is true of would-be entrepreneurs that want to transition their favorite hobby into a viable business.  You may discover that your passion for your once favorite hobby will fade once it moves beyond the fun activity you used to fill your leisure time.

But if you believe that you have the necessary drive and the requisite entrepreneurial spirit required for success, start by asking yourself these questions:

  1. Is my product or service unique?  If you discover that you can’t successfully differentiate your product or service from the competition, you will likely have to charge less.  And unless you possess some significant cost advantages, you will probably find that squeezing your margins may not result in the success you had hoped for.
  2. Do I have the necessary working capital to succeed?  The anticipation of future sales, reliance on credit cards, and leveraging your vendors is not a formula for success.  In fact, the eventual tsunami of high interest debt and resulting poor relationships with your favored vendors is a recipe for disaster that you may never escape from.
  3. Am I willing to create and follow a business plan?  If the answer is no, small business ownership may not be for you.  A well-thought out and carefully implemented business plan will significantly enhance your potential for success.  Add to that the accountability from a few trusted mentors and you may be well on your way to a rewarding future as a successful small business owner with the odds squarely in your corner.

Success as an entrepreneur depends largely on your perspective.  Do you view your new venture as a game of chance or a solid business opportunity?  If you find yourself saying that “you’ll give it a shot,” you may be rolling the dice.

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