You have just launched your business. Congratulations! Then you quickly realise you have a pretty daunting journey ahead of you. You are not alone.
- 20% of small businesses fail in their first year;
- 30% of small businesses fail in their second year;
- 50% of small businesses fail after five years in business;
- Most importantly, 70% of small business owners fail in their 10th year.
The great news is you don’t have to be that unfortunate statistic. As the saying goes, life gives you what you put in.
No matter what kind of business you pursue, there will always be obstacles. Let’s look at five of them.
1. Focusing on the negative
When faced with a stumbling block, you should first approach it with a positive outlook. However, most business owners tend to react with fear and self-doubt. They fear that things may not work out. Or that they don’t have what it takes to solve problems.
Very Well Mind has discovered that when business owners have a negativity bias, they tend to do the following:
- Remember traumatic experiences better than positive ones,
- Recall insults better than praise,
- React more strongly to harmful stimuli,
- Think about negative things more frequently than positive ones,
- Respond more strongly to adverse events than to equally positive ones.
- Fear problems.
Fearing the problem itself only makes the issue at hand appear more daunting. So, instead of worrying about the stumbling block, look at it as an opportunity to learn something new.
What you should do: In the morning, wake up and say something positive. Make that your very first thought of the day.
Ruth Bower, a motivational speaker, says business owners should avoid saying hurtful things to themselves. “Things we would never say to a friend or loved one. So why do we say it to ourselves? And worse, why do we believe it?” she says.
According to Bower, negative self-talk can be attributed to the wiring of our brain to a certain extent. Still, it would be best to realize that most of them are entirely false.
2. Not putting a solid plan in place
Put a solid plan into writing, start with what you’ll do today, and end it with achieving your goal. As your business grows, tackle new stumbling blocks. Adapt your plan to find the best path forward at each moment, but always make sure you have a plan.
You should keep a journal to track your progress and setbacks as you work toward your goal. Set yourself several milestones along the way, and make sure to reward yourself for each one.
3. Not having a viable product that consumers will buy
A viable Product (VP) is the most basic version of the product which the company wants to launch in the market. It could be food, hair products, or a service. By introducing a VP to prospects, you stand a chance to improve from the feedback you will get from them.
What you should do: Once your product’s viability is determined, you should be able to answer these two crucial questions:
- Can my business produce a profit with this product?
- Can I ultimately scale my interaction with this product?
4. Not knowing how to communicate
Effective communication is a prerequisite trait for every entrepreneur who wants to overcome stumbling blocks. Besides, it’s nearly impossible to market your business without communication attributes.
Furthermore, entrepreneurial success cannot exist without maintaining a healthy and reliable relationship with clients and other stakeholders. Those relationships depend on communicating effectively.
What you should do: One study found that nonverbal communication accounted for 55 percent of how an audience perceived a communicator. So, it is essential to learn nonverbal clues or body language.
Communicate clearly and confidently, and adopt proper posture. Avoid slouching, folding your arms, or making yourself appear smaller than you are.
5. Not knowing how to negotiate
Harvard Business School Professor Howard Stevenson had it right when he said: “No matter what the sector, entrepreneurship requires convincing others.”
You can’t be in business for a long time if you can’t negotiate. When entrepreneurs let their independent spirit dominate how they deal, they alienate others. Negotiation should be a team effort, not an individual task.
Against these challenges, entrepreneurs must not only be innovative but determined to succeed no matter what.
What you should do: All successful negotiations result from planning and preparation, which means you should do your research correctly and know the other party.
