“You are so creative,” they said. “You should be an entrepreneur”. “You’ll be great at it, it’s so easy to start a business right now”. REALLY???? 

The truth is that being an entrepreneur is tough. Only a handful of businesses make it. I’m sure you’ve heard the statistics. If you can make it through the first 3, 5, and XX years, you’ll be fine. Well, that’s not the case. Now more than ever we are seeing established businesses closing their doors. 

Recently, my husband and I attempted to go out for a lunch date. We were so saddened by what we saw. As we walked the streets of what was once a popular and buzzing shopping and dining area in our neighborhood, we were faced with door after door of closed signs. It’s 2021, so we were expecting some closures, but nothing like this In an area that previously had more than 20 restaurants, there were now only 4 left in operation, and the one we wound up at was in a terrible state. The countless retail shops and galleries were standing empty. So many of these businesses had been around for 10+ years. I shudder to think about what has happened to these owners and their staff. 

Driving home from an appointment, I heard an interesting study being discussed on the news. They were speaking about the mass resignation taking place as a result of people not wanting to go back to offices after COVID restrictions lift. Many of them have decided to become an entrepreneur. This is great. I love entrepreneurs, the world needs more. But how do we ensure that we are improving the success rate and not adding to the list of failed ideas, laid-off staff, and stresses that come with it? As an entrepreneurial coach, I spend a lot of my time thinking about this. When I look at my successful clients, it is largely part of a combination of things.

Cash - This seems logical and not as easy to come by as you would think. As a start-up entrepreneur, you bootstrap your ideas, beg and borrow. Eventually, you may even raise enough seed funding to get things off the ground. But have you considered the real cost of the money? How much of it needs to be paid back or is earning interest? How much is tied up in stock, property, leases, and other things that you can’t get rid of in a pinch? Having a healthy balance sheet is wonderful, but if all your money is tied up in assets, you can run into trouble. Understanding your business model and costs will help you plan better. Getting credit and overdrafts when you don’t need them can also build a safety net as long as you are not paying huge fees to have these. Ultimately, cash is king. But how much do you need? Take the time to sit with your financial planner or finance team to work this out. It will be time well spent and money well saved.

Customers/clients - Another no-brainer, right? Well, believe it or not, not every business has a line of sight into how many customers they have and how many loyal or repeat customers they have. How can you track your regular clients and what can you do to keep them coming back, even in tough times? How can you entice one-off clients to become long-standing ones? How can you transform your service offering to make their experience better, simpler, faster, safer, and more convenient? It is rare for a business not to have competition. How are you outthinking yours?

Team - When last did you take a look at your team? Not just the people and their performance reviews, but the capacity, and ability to fill extra roles in the organization, readiness for promotion, personal and professional development, etc. It’s easy to look at our org charts and fill in the squares with names, giving us a sense of comfort that all roles are filled. Are they filled by the right people? Are you, as the owner/founder/CEO filling too many of those positions? Have you appointed people to these roles, but you are still holding the reigns? Do you know who your next hire should be? Dream teams can be difficult to build and require constant assessment. Surviving in the entrepreneurial world means having to carefully balance workload with team size. Having people in your team who can perform multiple functions and building a team of individuals at the right level so as not to have a top-heavy or bottom-heavy organization.

Support - Over and above the right team, having a support circle around you is vital. These are people who are not directly involved in your business. They can be everyone from accountants to spouses and other family members great friends, coaches, and mentors. Even friendly competitors and peers. Being an entrepreneur responsible for steering the ship can be lonely and overwhelming. You need a support structure around you to help you through the tough days and celebrate the wins. Big or small.

Foresight - Hindsight means that it’s easy to know the right answer after it’s happened. As an entrepreneur, foresight is something that you cannot afford to waste. Keeping your finger on the pulse of your business, surroundings, the news and economy is vital. Saying attention to the smallest shifts can make big differences in your business and how you respond to change.

Agility - Speaking of responding to change, it’s great to see the changes coming, but knowing how you can shift to handle them is equally important. You need to have a plan B and C in your back pocket. That said, you also need to be flexible and agile enough to throw them both out the window and try something completely different. Before 2020, very few organizations consider how they would do business without being face-to-face. Service-based businesses have been hit hard, but those who have survived have done so by being able to pivot and come up with the most unique plans that have kept client and customer interest. Being agile does not mean that you are reckless and constantly changing. It is having the mindset and capabilities needed to change direction quickly should the need arise.

Bonus - A mirror - This is a tough one. Being an entrepreneur comes with a fair amount of ego. You created this business, it was your idea, and without you, it would not exist. But, have you asked yourself if you are the right person to be leading this team, or if you should appoint that person to help build a great culture and drive success? Are you still passionate? Are you still doing a great job? Do you still want to or is it time to sell? How can you be better every day and who can help you?