Business Failure
Why Some People Can't Avoid It

Business failure can happen to anybody, for lots of reasons. When the economy takes a downturn, any business can be at risk. However, some people just can't seem to avoid new business failure.

Why?

It's not that they aren't as smart as other people, but there definitely is an entrepreneurial mindset that some people simply don't have. Here are some of the chaacteristics, misguided notions, and beliefs of people who just can't be successful entrepreneurs and are probably destined for business failure:

They think of work in terms of an hourly wage. Every successful entrepreneur knows that you can't count the worth of your time in terms of dollars and cents. Building a successful business takes lots of time and hard work. In the beginning, you work harder than you want to, and the compensation is lower than you'd like. After a little while, though, you make more income for less effort. How long that takes depends on many factors, including the business you are in, how much experience you have, how much initial financiing you have, etc.

They lack patience. I really think the phrase "building a business" relays a very important concept. You are building something. Have you ever watched a real building being contructed? First, you see the prep work. Then you see the foundation being laid. Over time, the building starts to take shape, but it always takes some time. Building a business is similar in that you can't expect success overnight. Some people are fortunate and success comes quicker than for others, but it is extremely rare for financial success to come right away. Experts say that it can take up to five years for a new business to be officially 'successful.' Chronic business failures rarely give it even a year.

They have unreaslistic expectations. You can tell the people who bought into the 'get rich quick' schemes. They talk about having a product that 'sells itself.' They expect wealth with a minimal investment of time and energy. The role models they focus on are people who claim to have made milions with little to no effort. I read a book recently by a man who claims to earn ongoing wealth by only working a few hours a week--and he's making money by selling that book to others who believe it can happen for them, too. He neglects to discuss the twenty years he invested in his business before he reached the point where he could cut back to a few hours a week. He also neglects to mention that not all businesses can run without their CEO being on site more than a few hours a week.

They don't understand the importance of action. I am a big believer in maintaining a positive attitude, of making some time each day for self-development, of making a good and thorough plan for success, of setting goals. However, at the end of the day, the progress of my business each day comes down to action. What action did I take? How effective was it? What action will I take tomorrow? What action am I taking now to contribute to the success of my business? Avoiding business failure is 90% about action.

They don't believe in themselves. This is the saddest characteristic of all. Many of those who fail early in business (and those who never even start) just don't believe they are capable of business success. They lack confidence in themselves and quickly believe the naysayers around them who scoff at their efforts. Here's the truth -

"Continuous effort - not strength or intellgence - is the key to unlocking our potential." - Liane Cordes

They are afraid. they are afraid they will fail. They are afraid they will not make enough money to pay their mortgage or feed their children. And that's all they think about. They can't get passed it. When you take golf lessons and you're addressing the ball at the tee, the pro will tell you to look at and focus on the flag marker on the green, or the fairway if you can't see the green. You should not focus on the bunkers, or the trees, or the water, or the rough. Why? because your shot is most likely to follow your point of focus.

Wow! That's profound. But so true.

Our point of focus determines much of our result.

If you focus on - and keep thinking about - how you might not make enough money to cover your mortage, you probably won't make enough money to cover your motgage. On the other hand, if you are determined to make at least enough money to cover your mortgage, and you think about, look for, and talk about the ways you are going to do that, guess what? Bingo. You'll probably make at least enough to cover your mortgage. It's not a guantee of success (you have to mix it with action), but success is not likely without it.

They think that they have one source of income. This is the clear mark of the non-entrepreneur. If someone with an employee mindset needs more money for anything (to pay bills, to buy a new boat, whatever), he thinks that he needs to get another job, or he needs to work more hours. He equates more money with more job. An entrepreneur understands that there are many sources of income. He doesn't limit himself to simply doing more of the same. he looks for new and different opportunities. In most cases he'll want to find other opportunities that complement his current sources of income, but most importantly, he is open to opportunity.

If someone comes to him with a new business opportunity, he will listen. He does not immediately assume it it won't work for him.

He actively looks for new opportunities to make money and new ways to make his current business more successful.

Then he takes action. And he sticks with it. And he thinks only about success.

So what does this mean for you? If you want to avoid business failure, don't focus on failure, but on success. Find successful people and use them as your role models. I'm not talking about the flash-in-the-pan,qet-rich-quick types, but the real successful people who have built their businesses on the solid foundation of hard work.

Think about success. Act successful. Plan for success. Track your success. Claim success.

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