There are almost no circumstances where starting your own business will be easy. However, that doesn’t mean that you shouldn’t try and that it won’t be the most rewarding thing you’ve ever done. You just need to go into it with your eyes wide open and with as much research and planning as you can do in advance.
One of the most important things to know is the realities behind starting a business. These can be harsh but can help you to become even more focused and determined.
1. Nearly All New Businesses Fail
This is probably the scariest fact out of all of new business stats. The general consensus is that about 90% of new businesses will fail, although this doesn’t tell the whole story. In most cases, it simply means that the business won’t have longevity. This is because around half of the new businesses formed around the world will go under or stop operating within the first five years of starting. As you head towards the 10-year mark, that number increases to 75% and then up to around 90%.
This does not mean that you shouldn’t get started with a great idea. It just means that you may need to be inventive and determined to beat those odds. You may also need to consider the fact that in 5-10 years, you’ll be looking to start your next venture.
2. You Are Not The Only Person With This Idea
Never go into a new business thinking that you have no competition at all. A great business idea will have some originality, something to make it stand out from the crowd. However, there will always be another business out there that you should be considering as competition.
Competition is a good thing. It means that there is a market for what you are selling. You can also use your competitors to keep you sharp and push yourself to keep your business moving forward.
3. Owning A Business Does Not Make You Automatically Rich
There is this notion that being a business owner will lead to becoming wealthy, allowing you to take private planes and wear Rolexes. This is not the case for the vast majority of business owners. The woman who has her own day spa and the man who opened the local pizzeria are both successful business owners but are not going on flashy holidays or making multi-million dollar deals.
It’s critical to be realistic about how much you can make from your business venture and whether or not that is enough for you.
4. If You Build It, People Will Not Just Come
No one will come to your new business and buy bitcoin or anything else from you if they don’t know that you exist. It might be the greatest idea to ever have happened to your industry or your area, but people will not become automatic customers once you open.
Investing in marketing is essential. Too many new business owners put all their time, effort and money into getting the right equipment and products, and don’t put enough thought into how they are going to get people interested in buying from them.