More than half of new businesses will fail within the first five years, according to the Small Business Administration (SBA). Statistics show that eight out of 10 new businesses will disappear within the first three years. Almost 80 percent of new businesses fail within their first year.
According to Dun & Bradstreet, “Businesses with fewer than 20 employees have only a 37 percent chance of surviving four years and only a 9 percent chance of surviving 10 years.”
While the reasons behind such dire forebodings have been justifiably argued as ranging from poor management skills to lack of proper capitalization, author Bryan Cohen argues there could be an even simpler underlying reason. In his book, How to Work for Yourself, he puts forth a basic concept for success — having the “right state of mind.”
Cohen believes that with current access to tools and information from the Internet, nearly everyone has the ability to learn how to start a business. With so much expertise readily available, why do so many continue to fail? The answer, he says, is that most people lack the personal skills in time management, energy management and priority management. If you can’t get your “head on straight,” how can you expect your business to succeed?
The author suggests finding the proper mindset applies not only to starting a business, but also to any creative project, such writing a book or blog.
What he offers is a collection of 100 ways for people to gain this right mindset, drawn from his own trial and error as well as other books and resources. The result is a thought-provoking, albeit somewhat simplistic, listing of ideas that seek to encourage creative entrepreneurship.
Chapter One starts with one of the most basic threats to a new entrepreneur: lack of time management. Many new business owners fail to figure out what are the most productive things possible to do for the business, instead getting lost in details.
Learning to focus remedies the need to constantly double check details. Often, this is as simple as eliminating distractions such as constantly responding to your phone, tablet or laptop.
One great distractor, email, should be answered only in the morning and evening. Too often, the author suggests, we check our email 10 or 15 times a day out of the need to feel important or loved. If you want to be successful, get over it.
One of the hardest of time savers is being an emotional rock. If you’re wasting time on petty arguments or reacting to others instead of using logic, you won’t have time to run the business.
If you want to get tuned to this focused entrepreneurial mindset, try giving up Facebook, TV or mobile Internet for 30 days, Cohen suggests. If skipping Facebook for that period of time “sends shivers down your spine,” that’s reason enough for doing it, he says.
Another error that many entrepreneurs make is the failure to manage their own physical energy. Physical energy is created by your level of physical fitness, type of food eaten and even the amount of sleep you get. While these concerns are not usually taken into consideration when starting a creative project or business, Cohen suggests they are vital for productivity.
Equally important is to get energy from others. Healthy relationships boost energy levels and allow for more time to work on creative projects. Though a new endeavor is often time consuming, spending even an hour per month helping others or working for a charitable cause can be energizing.
While good health practices and social relationships build the energy necessary to support a business, the most important source of energy is you, Cohen says. Creating a positive outlook, interrupting your negative thoughts and boosting your self-esteem are building blocks for success in your business.
“The people who are most successful with their businesses, books and blogs believe in themselves,” Cohen says.
Any aspiring business owner should review the book’s section on goal setting. The exercise on modeling your goals based on someone who has been successful in the same or similar business could certainly provide a boost in your own processes.
How to Work for Yourself provides valuable insight into the personal mindset needed to be successful. The author makes the argument that perhaps more than spreadsheets and business plans, a clear, focused intent and right attitude may just be the most necessary tool for creating a long-lasting business.