The majority of new small businesses fail. That isn’t meant to scare you off or put the willies in you, it is just meant to help you position yourself better, to look success in the eye and help tip the scales in your favor.
Well, by knowing what separates an entrepreneur from succeeding and failing you can find the answers to those burning questions at the back of your mind.
What Are The Odds Of A New Entrepreneur Succeeding?
There are no odds here, but there is this notion of performance persistence that puts serial entrepreneurs at the top. In fact, an entrepreneur who has already seen success in his first startup has more than a 31% chance that they will succeed in their next attempt. This is compared to 18% for first-timers.
What Are The Chances Of Getting Funding?
The answer here is a positive one because, out of all of the options, a new entrepreneur is much more likely to receive funding from a venture capitalist than the alternatives. What’s more, even someone that has tried and failed to launch a startup is more likely to get VC funding that a serial entrepreneur with back-to-back successes.
Is Success Down To Luck?
Absolutely not. Coming up with the right idea, launching it at the right time and in the right marketplace, that is a skill. You see, success comes down to an immense amount of variables and it is up to you to understand what these variables are how they will affect your success. It is a skill to bring on the right people at the right time. It is a skill to know how to approach different investors. It is a skill to write a business plan and stick to it. It is a skill to know a good IT support company from an average one. It is a skill to build relationships with suppliers, and build up your customer base, and understand a new market, and deliver quality, and have great customer service. Yes, luck can play a part, but how much of that luck goes in your favor is down to you.
Where Do Great ideas Come From?
There is a simple answer to this one; former experiences, which can be narrowed down further to mean formers employers and colleagues. So, it would be a good idea to learn from this by having your employees sign non-compete clauses when they start. In fact, a recent Harvard study stated that the majority of entrepreneurs got the idea for their startup while working at their previous job. In terms of ideas for growing your business once it has been started, ideas can come from anywhere. But the more you surround yourself with intelligent and creative people the easier this process will be.
How Important Is It To Land A Good Venture Capitalist?
The reason this question comes up a lot is because venture capitalists offer something that other funding options don’t, and that is their experience. In terms of their importance, research shows that the better the VC the better your chances of success, but this may be slightly warped by two things; their ability to have the first pick of those with more potential and the fact they are able to add more value to the startup due to their experience.
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