|
Build
Your Own Business
 The high road to becoming a
self-made millionaire in America is starting and building
your own business. But this is not as easy as it sounds. Most
businesses started by inexperienced people fail.
Probably the primary reason why people don't start businesses is
because they're afraid that they're going to lose their money
and for good reason. 99 percent of businesses started by people
lacking business experience fail within the first two or three
years.
Why Businesses Fail
And why is that? It's because they don't know how to succeed.
They haven't the slightest idea
how to make a business successful. They may have an idea for
a product or service, but they don't know all the things that
they need to know to run a successful business.
8 Key Entrepreneurial Questions
Why Businesses Succeed
However, surprisingly enough, 80 percent of businesses started
by experienced businesspeople succeed. Now why should this be
so? The reason is because experienced businesspeople know what
to do. They know how to purchase their products and their
services. They know
how to negotiate with their suppliers. They know how to
raise money. They know how to negotiate leases. They know
how to sell
and to market. They know how to manage their
finances. In other words, experience is the key. In order to
start your own business and succeed, you have to learn how.
Competence Makes The Difference
Now
according to Dunn and Bradstreet, 96 percent of businesses in
America that fail, fail because of what is called "managerial
incompetence". Managerial incompetence means that the people
running the businesses don't know what they're doing. And here are
the two critical areas of managerial incompetence that cause
business failure.
Estee Lauder's 15
Rules of Entrepreneurial Success
First is sales and marketing. 48 percent of businesses that fail
in America fail because the business cannot sell enough of its
products or services. Very few businesses fail when they have
high levels of sales and revenues coming in.
Customer Success 360
Control Your Costs
The second reason that businesses fail, 46 percent, is because
of poor cost control. They may be selling enough on the front
end, but they're losing so much on the back end that they go
broke anyway. Sales and marketing, financing and cost control,
both require experience. And if you're serious about becoming
financially independent, you have to learn how to do both of
these.
Put Luck On Your Side
You must learn the skills you need to be successful. Business
success is not a matter of luck. Business success is a matter of
application. It's a matter of ability. It's a matter of
experience and skill and intelligence, and wonderfully enough,
you can learn what you need to know to be successful. And you
can start by learning through on-the-job training, which is
called OJT. Most successful businesspeople become successful
because they get all their training by working for someone else.
Action Exercises
Here are two things you can do immediately to make sure that
your business succeeds greatly:
First,
take the time to get the knowledge and experience you need in
business
by working for someone else where you can learn a lot in a short
period of time. Go to work in an area in which you are
interested and learn everything you possibly can.
Second, read and study in business, especially
entrepreneurial
business, all the time. Read one or two business books per week
and read every business magazine that is published on your
subject. Never stop
learning and growing.
The
Complete A to Z
Plan for Business Success
Discover!
|
