Undoubtedly, one of the biggest complaints entrepreneurs have when getting their business up and running is the amount of WORK it takes.
The average successful business takes twice as long and twice as much capital than was planned for.
This may seem like bad news and it’s not exactly a message that will get you excited in the morning. But take heart, it is BECAUSE of this tremendous amount of effort and yes, more capital than you had wanted to invest that gives your small business or growing enterprise a safety net.
The harder you have to work for something the more security you have in it! This may seem counterintuitive until you break it down. If it were easy, literally everyone would want to and BE ABLE to do what you do. You would have more competitors than you could shake a stick at.
The problem with a market that has a low threshold for entry is it is makes it easy for anyone to enter and succeed. The larger the competitor pool becomes the lower everyone’s price for service becomes until it almost turns into a competition of who can go broke first.
Business Entry Thresholds:
Knowledge: Some businesses take special training or at least a degree of advanced specific or trade knowledge to operate. If your business is one of these, set aside time every week in your calendar to consistently grow your knowledge. You can’t learn it all overnight, but you can immerse yourself up front and then consistently grow your knowledge base to become an expert in your field. Remember, you never want to stop being qualified for your job. Learning never ends and most small business that flounder in an industry think they know it all when in fact they know just enough to be dangerous. Dangerous to themselves and their clients.
Capital: A high or higher than expected entry cost is certainly a self-eliminating factor for most would be entrepreneurs. Of course, we all wish we could start a business and grow it to six figures for a couple hundred dollars. The reality is even a low or virtually no cost venture will require a couple thousand dollars to start when you add up all of the 30, 75 and 200 costs. This doesn’t even consider your lost income during the start up stage. The higher the entry cost, the more insulated you are in your business. But remember, the lower the cost the more competitors or “fly by night’s” you will see enter your market.
Work: Starting a business is a lot of work. Early morning, all day, evenings and weekends. The first couple years can be overwhelming but the more effort and intensity you can put in upfront the faster you can compound your efforts later. An excellent book on compounding your efforts is The Compound Effect by Darren Hardy . I highly recommend this book! This one area is probably where the majority of new entrepreneurs fall short. Someone that has never owned or started a business cannot grasp how much effort is required, and not just effort but FOCUSED and consistent effort are needed.
As the saying goes: The investment comes before the Return or Results. We have to pay up front for the future we are working for and it does take WORK to succeed. You don’t have to enjoy the “suck,” but you should at least embrace the “suck!”
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Market SCYTHE helps local businesses grow their sales through targeted and effective marketing strategies and campaigns. If you’d like a free no pressure consultation, you can contact us at firstname.lastname@example.org