Do you Have What it Takes: The Entrepreneurial Mindset
No one goes into business with the intention to fail.
But did you know that about 20% of new businesses fail in the first year? And about 50% fail in the first 5 years? Those are some pretty startling statistics. Now, there’s a lot that goes into those numbers- maybe the business plans were not solid, or they couldn’t mange their cash flow, or possibly there never was a market for their business in the first place.
Another reason for failure is one simple thing: MINDSET . Many business owners throw in the towel and give up because they didn’t have the right entrepreneurial mindset to persevere through the ups and downs. And trust us, there will be many ups, downs, lefts and rights when launching a business.
Profitability rarely occurs in the first year or even two. On average it takes 3 years for a business to become profitable. That means you’d have to live through at least 1,095 days of being in the red, of pushing through small failures, and constantly adjusting your business model. Entrepreneurship is certainly not easy and if you’ve gotten this far knowing all the formidable statistics then you’re heading in the right direction!
What is an Entrepreneurial Mindset?
According to NFTE, “An entrepreneurial mindset is a set of skills that enable people to identify and make the most of opportunities, overcome and learn from setbacks, and succeed in a variety of settings.”
As entrepreneurs ourselves, who’ve launched and helped others launch successful businesses, we want you to be sure your have what it takes to launch and succeed! You have to quickly adapt, change, accept what went wrong and be a leader that’s decisive and stays focused.
Maybe you’re born with an entrepreneurial mindset and maybe you’re not. Maybe you’re ready to launch your business but you’re fearful (we get that!). Not being able to step into an entrepreneurial mindset straight away doesn’t mean you can never launch a business or that your business will fail. The good news is that you can start NOW to develop an entrepreneurial mindset.
5 ways to develop an entrepreneurial mindset:
Release Self Doubt and Redefine failure-
It’s human nature to second guess yourself and wonder if you had done something differently would the outcome have been different. With an entrepreneurial mindset while you’ll still encounter times of self-doubt it’s what you do in that moment of self-doubt that catapults you to success. Holding onto the self-doubt and focusing on it will take you down the wrong path. The key is to acknowledge and then release that self-doubt. Some ways to control your thoughts are to meditate, reach out to a friend or mentor, remind yourself of all you’ve accomplished, forgive yourself, face your fears and move on.
How you define failure is also a part of self-doubt. As an entrepreneur there will be many “failures”. You can harp on them, or you can redefine the failure as a learning moment and be strategic in how you look at a so-called failure.
Set clear goals / planning-
Yes, being an entrepreneur means being adaptable, but setting clear goals keeps you mentally focused on your business goals. Things may change along the way, there may be hurdles and backtracking, but knowing and understanding your business goals ahead of time will help you achieve them.
Be decisive-
Launching a business means you are at the helm of an amazing ship. Your decisions effect the success of the business. While this is stressful having clear goals (as stated above), analyzing information, and most importantly not being paralyzed by your fears will help you steer your ship on the right course. When you are stuck in the mindset of “what ifs” and questioning your decisions only allows fear to creep in. If you tend be indecisive, start now in practicing decisiveness by tackling everyday decisions. It can be a big decision like buying a car- do your research and make an educated decision. Or something small like deciding which movie to watch- choose one and stick to it.
Be Curious-
Being an entrepreneur doesn’t mean you always have all the answers, or your way is the only way. Being open to learning from others, learning from experiences (and those “failures”), learning as you go along the way helps you and your business grow. Part of an entrepreneurial mindset means you have a growth mindset vs a fixed mindset. Having that growth mindset allows you to learn and grow. It allows you to adapt, grow and make it through those 3+ years of struggle with little to no pay. To start developing this mindset do something you’ve never done before. It could be exploring a museum, learning the guitar, learning a foreign language, going bungee jumping or anything else you may be interested in.
Build connections, a support system, accountability partners and mentors-
It takes a village to launch and grow a business. When the self-doubt creeps in (and it will) having a support system in place will help you get back on track. If you are a solopreneur having accountability partners and mentors to help guide you is important. Surrounding yourself with likeminded people to help you get through the bad and good days is essential.
SIGN UP FOR OUR FREE WEBINAR: FEARLESS SMALL BUSINESS STARTUP
Even though the success rate of building a profitable business is low that doesn’t mean YOUR business won’t be successful. Starting with the right mindset is just as important, if not more important, than building a business plan or looking for funding. Not sure if you have the mindset to be an entrepreneur? Take our QUIZ and start adjusting your mindset so you can launch your amazing business!