Start And Scale Your Business To Success
Starting up your own business is a big commitment, so it’s important that you fully understand your reasons for wanting to start the business along with understanding the key components of a business and what makes some businesses succeed whilst others fail. When you understand these three areas, you can significantly increase your chances of success.
Fully Understand Your Reasons For Starting Your Business
The six following questions can be useful in establishing why you want to do what you do and where you want to take your business, which are your mission and your vision:
- Why do you want to do it? (Your why and purpose).
- Who are you now and who do you need to become? (Your reality / personal development).
- What do you want to be known for? (Your personal and business branding).
- Where you are now? (Your current location / circumstances).
- Where do you want to be? (Your ideal destination / lifestyle).
- When do you want to get there? (Your arrival time).
By setting out your answers to the questions above on one side of a sheet of paper, it can provide greater clarity on your goals, the reasons why you want to start a business, your business idea and solution.
5 Key Components Of A Business:
- Idea / Solution
- Business Model
Here Are The Top 5 Reasons Why Businesses Fail (In Order From Most To Least):
- Timing – This is the biggest factor when it comes to success or failure in any business. Think back to the examples I shared earlier in the book regarding my grandfather’s idea to purchase the wooden military buildings and carve them up into house-size sections to provide affordable housing. The idea, solution and timing were perfect: the timber buildings were available for sale, there was a shortage of accommodation and people didn’t have much money. However, when my father later purchased some more of the buildings years later, the results were very different. Another example would be my grandparents’ timing in selling the land on the small island just before a large oil company wanted to buy it. A more recent example would be Airbnb. When it started, people questioned whether it would work based on whether people would allow strangers into their homes, but the timing was perfect as it was just after the economy collapsed and homeowners needed additional income and people who needed the accommodation wanted cheaper rates. Had Airbnb launched one or two years earlier, the business might have failed, and the idea might never have been implemented again due to the belief that it was flawed and would not work. As I mentioned earlier in the book, ideas have a shelf life and it’s important to recognise when the expiry date has been reached and adapt to the new market conditions and trends. As part of your exit strategy planning, you may wish to consider the anticipated shelf life of your idea and sell the company when it’s at its peak.
- Team / Execution – Business is a people game that comes down to good teamwork. In order to succeed, the team needs to have the right mindset, a good network, rapport, relationships and reputation. People do business with people that they know, like and trust.
- Idea – Whilst I would say the single most important component of a business is the idea, it is not the number 1 reason a business will fail.
- Business Model – A business can start without a business model; this can be added later. It is said that YouTube started out without any business model. The business model needs to be adaptable.
- Funding – Whilst funding is crucial to starting up and operating a business, it is the lowest ranking reason of the five when it comes to reasons for failure. A great idea that is timed right and executed by a good team based on a solid model will always be able to access funding. There is a huge amount of money circulating the world every day looking for a good home that will provide an attractive return.
Starting a new business can be very exciting, particularly when you have found something that you are passionate about. I believe that we all have an INNER GPS (our intuition), which I call my GENIUS POSITIONING SYSTEM, which is always guiding us.
A dream can feel like it is achievable because you do not have all the answers, and this is where faith and listening to your intuition is important. If you can dream it, you can achieve it! Without some sort of a plan of action, a dream remains just a dream. To achieve our dreams, we need to set some goals. A goal is a dream with a deadline. If we are to achieve our goals, we must take action – and the best way to do this is to develop a plan of action that will help us achieve the goals and dreams that we desire.
If you would like to start your business but don't know where to start and would like some more in-depth information, check out our our website for information on products, course and events or contact us today for a friendly chat to see how we can help and support you achieve the success that you are looking for and deserve.
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Property Investor, Developer