When you think about the impact that small businesses have on the economy, it is pretty astounding. They account for a huge majority of jobs, as well as economic growth. But when you understand that 80% will close in only three years, and 50% more of those left will close by the end of the fifth year, you may wonder how it’s all possible. Through failure, that’s how. Failure is a real learning tool when it comes to learning about hot to start a successful business.
Who Are These People?
Who starts these businesses? For the most part, they are educated, middle age, white males. Most of them are family men, as well. When they decide to start their first business, many simply invest their own savings. And many of them have seen their ideas fail again and again. However, those mistakes seriously help them to learn more about the business world. For example, most will then find external funding of some sort for their second business venture. And these ventures are much more likely to succeed in the long run.
Failures Make You More Apt to Succeed
How so failures make you more likely to succeed? First of all, you learn the ropes. You also make plenty of valuable contacts in the industry and community. Failures allow you to perfect your business model, philosophy, and products. Studies show that once an entrepreneur fails that are twice as likely to succeed on the second try. This is why you must not let your first failure (or even your second or third failure) get you down when it comes to starting a startup. Instead, go back to the drawing board. Rethink, redesign, and launch your small business again. Our studies show you will do much better the next time around.
Do Not Fear Change
Even the most well-established small businesses should not fear change. Change can, in many ways, bring a whole new life to a startup or business. We can see this even in tech giants like IBM and Apple. Both of these iconic brands were nearly broke in the 90s. However, with a few simple changes they managed to stay alive. Eventually, these changes led to greater profits. These days, both of these tech companies are known internationally for their products and reputation. So, if anything, aim for change when you are in a slump.