Literally hundreds of business (probably more like thousands) are started every day, and the majority of them fail. Why? In general, the owner started the business with a plan, a good or service that he or she researched and found would be successful, had some capital behind them and were very excited about "taking on the world". So why do they so often fail? This article begins to explore why some business people succeed and other fail.
Through some research, I've found that there are generally three general categories that can be used to describe the successful and the unsuccessful businesses.
1. The people behind the business are failures. Now, this sounds harsh, but if you have never experienced success in your working life, you give up after a short time, were only in the business for a quick buck, have a tendency to try something and as soon as it gets "boring" or "too hard" you move on to something else, chances are you will fail at your business too.
2. The people behind the business are successful. These people have the ability to turn what they do into a success, through hard work and dedication. Their definition of success is that they are able to put food on the table, pay their bills and go on a nice holiday with their partner once in a while. This is a definition of success (they are still in business, aren't they?). However, they usually work ridiculous hours for what reward they can get and are rarely home to enjoy those rewards anyway.
3. The people behind the business are enormously successful. These are people that books are written about, or are spoken about in hushed and reverent tones. They become millionaires and live lives that others only dream about.
So, what is the difference? Well, between group 1 and groups 2 and 3, the differences are generally obvious- motivation, perseverance, an ability to deal with failure and patience. However, identifying what sets group 3 apart from group 2 is a little more intricate.
One major difference I've found is diversification. What is diversification? Channeling any spare cash into the business to help it grow, or into other businesses that will also bring in money. They are usually content to wait for the wealth for a short time, instead concentrating on building the business so that the rewards, when they come, are much bigger and more valuable.
