Being a Successful Entrepreneur Is Not Easy

Doing the Right Things the Right Way Can Make It Simple 

This Small Business Administration Business Survival Rates report says I can call myself a successful entrepreneur. I routinely read these types of reports to gain perspective on the current state of the small business environment. I have never believed that entrepreneurial success should be measured on how long you have been in business. Many successful companies are sold or acquired before they reach the ten year survival threshold the SBA uses in its reporting. 

I knew well before this SBA data came out that my first company, founded in 2002, was “successful”. The real value of the report to me was to gain some perspective on what happened to the other sixty-six percent. I am sure that many of the "class of 2002” went on to start and build successful companies and that’s the exact reason why I love the world of entrepreneurship. 

I founded and launched my second company in 2017. While the tools had changed dramatically 15 years later, 128 KBPS to GB speeds, Motorola Star Tac versus iPhone, the fundamentals and basics of starting a business remained the same. 

Unfortunately, the data on business survival rates and the reasons startups fail have remained remarkably consistent and sadly unchanged. The reason? Many founders don't always do the "Right Things," the "Right Way." I'll explain.

Visualize an archery target and focus on the bullseye. Doing the Right Thing if you're a competitive archer means practicing and training always to hit the bullseye. It’s the sweet spot where the most points are earned and what all associate a perfect shot with. Doing it, the Right Way is applying your training, practice, and skills to hit the bullseye consistently in competition. It's all about execution.

In archery and business, missing the bullseye has real consequences. In archery, you lose points. In business, you lose revenue, profits and sometimes your entire business. Doing the Right Thing, the Right Way is where success is found. 

The data, like this SuccessHarbor article for example, on why businesses fail or succeed, is consistent and clear. It comes down to the same thing, the entrepreneur. Those who consistently do the Right Things the Right Way win—those who repeatedly don't, have a very different outcome. 

Here are several examples of critical Right Thing the Right Way actions and behaviors:

Item One: Be Prepared…and Then Some

You may look the part of an entrepreneur and even talk like an entrepreneur and some may even admire your passion and ideas. However, it doesn't mean it’s either practical or profitable.

The data on why entrepreneurs and small businesses tend to fail often list no market need, a lack of planning, and the lack of business knowledge by the founder or founding team. Knowing and understanding why others fail tells you what Right Things you need to do to succeed. Testing your idea, developing a business plan, and learning how business is done should be your initial priorities. 

If you have seen an episode of Shark Tank, Billion Dollar Buyer, or Entrepenuer.com's "The Elevator Pitch," you know the types of basic questions you will encounter as an entrepreneur. The list will grow much more extensive when you make your pitch in a meeting surrounded by real investors with real capital.

Are you prepared to:

• Explain your business concept clearly and concisely and show a well thought out business plan?

• Answer questions about your business plan to include your market analysis, marketing strategy and execution steps?

• Proactively and accurately discuss your numbers, predictions and ultimately how their investment will turn into a profit for them?

• Tell your personal and your startup's story?

Credibility is every Founder's most valuable capital. The quality of your pitch will determine if you are banking or depleting your credibility balance.

Item Two: Influence is the New Control

As an entrepreneur, you sell your product, secure financing, and acquire customers by influencing others' decisions. Although, most important will be the ability to influence behavior change and decision making within your company. That’s what real leaders do.

Stephen M.R. Covey observed, "We judge ourselves by our intentions and others by their actions." 

Our ability to objectively or credibly judge "ourselves" on anything is limited at best and totally ineffective at worst. The reason? Our cognitive biases such as the Dunnings-Kruger Effect, the illusory superiority bias, or the self-serving bias. Bias broadens the gap between our perceptions of ourselves and how our actions are judged by others.

Your Founder and CEO title doesn’t make you a leader; your behaviors do. Your title gives you authority, but authority is a very negative way to try to exert influence. 

The solution is simple. Consistently and aggressively seek input and feedback. Every interaction with any individual on your team, in any setting, or any forum is an opportunity to get actionable feedback to improve your leadership skills, organizational performance, and operational results. 

Leadership is your ability to mobilize and energize people to do the Right Thing the Right Way because they choose to do it. That's what real influence looks like

Item Three: Seek Help Where Needed

I believe the greatest of all fears many in business have is the fear of judgment. Arrogance, ego, lack of self-awareness, and humility prevent people from seeking help and the answers they need to succeed. 

If you think seeking help is a negative, fine. Just tell yourself you're being resourceful and call it a day. 

We often are acutely aware of our skill and knowledge gaps yet take no action to close them. Identifying our personal and professional challenges and skill gaps is the Right Thing to do. Taking no action to eliminate and close them is the Wrong Way to execute.

The solution is simple, be resourceful and find help. If you have gaps in your business knowledge or questions, there are many community groups, retired executive programs, mentoring programs, business incubators, professional organizations, and business advisory groups that will help and support you at zero or minimal costs. Yes, there are actually people that do want to give and share their knowledge.

If you need help with developing your attitude, mindset, understanding brain science, or building elite people skills, you can find content on platforms like YouTube or LinkedIn to help you without signing up for a course or a program. 

Use these and many other services or platforms to elevate your game and increase your capacity to excel. The longer you choose to do nothing, the higher the costs on your personal and professional health and wellbeing. 

Doing the Right Thing, the Right Way doesn't ensure success. Look at the chaos and disruption that events like the COVID pandemic have created. However, it does dramatically increase the chances that you will be successful. 

In your experience as an entrepreneur, what behaviors or strategies made you successful? What’s one key piece of advice you can pass along to those just starting out?