Can you sustain the company you founded?
In the post ‘Entrepreneurism: Requirement made upon the entrepreneur’ we identified the skills and talents that entrepreneurs need to have to make the business successful. Statistics show that only 50% of businesses survive beyond the first 5 years. What makes some businesses thrive and some fail?
The success of your business is directly linked to your skills as an entrepreneur. People with talent for a task outperform people without it – and that includes entrepreneurship. Those of you with the inherent ability to meet the requirements of entrepreneurship are more likely to create a sustainable and successful venture than those of you with less ability to meet these requirements.
Entrepreneurship is challenging and messy, and there is no one predictor of success. Multiple factors determining success come together in additive and sometimes multiplicative ways to predict success. Nonetheless, the 10 requirements of entrepreneurship provide a road map to existing or potential entrepreneurs, and they help identify entrepreneurs who have the innate ability to create successful ventures.
Business size affects the relationship between your talent and business performance
In a start-up and small business the entrepreneur wears many hats and he is in direct control of the decisions made about the products/services, marketing, human resources, and operations. Your talent has a direct impact on your company’s performance. As the business grows this impact is less direct. The focus is more on getting the buy-in and alignment from the leadership team. This takes a lot of relationship building and teamwork.
Linking personality to business success
Regardless of the size of your business, there is a direct relationship between your personality and the business success. For example, if you are a risk taker, you have the ability to take on challenges and develop products usually ahead of the market. Or if you are natural at building relationships you use your talent to access resources internally and externally to grow your business.
If you are meeting most of the requirements, 7 or more, you are more likely to exhibit the behaviours that increase the odds of business success. If you are meeting all 10 requirements you are likely to have the innate ability to create extraordinary success – a high business growth and job creation!
Meeting 7 or less requirements does not mean that you will not be successful, but trying to succeed in areas in which one has little talent will take much more work and might still result in average performance.
Ultimately, those extraordinary results benefit everyone. Successful businesses employ people, create the products the market needs, and – because they are a central engine of growth – create and sustain the economy. There is no end of reasons to identify and support talented entrepreneurs. And there’s no time to lose either.
Share your experience and tell us more about the techniques you use to sustain your business.
Post originally published via ICAEW Business Advice Service – click here