- I MUST be Entrepreneurial
People venturing into business without being entrepreneurially inclined is the number one reason for new business failure.
By Chris Black
The business failure rate in most countries worldwide is very high, particularly for new start-up businesses, often reaching as high as 66%. Very few new business start-ups make it to the “magical” 10-year mark and continue to remain viable and profitable, with healthy growth prospects. Why I say the “magical” 10-year mark is that it is a commonly held belief, backed up by solid research, that if a business survives for 10 years, and is in a healthy state at this point, it will generally be able to survive in the long run.
Most people who start up a business of their own think they are somehow immune to failure, often citing “I know it happens, but it will not happen to me!” Somehow we all think we are invincible. Sadly, however, most of these new business start-ups will end up on the trash heap of disaster, often with dire consequences for the business owner and his/her finances. As I have said in the past and will continue to say “Your own small business is not for the faint hearted!!”
As mentioned in a previous article in the GEO magazine, there are a number of reasons why businesses fail within the first 2 years of operation. Because this article appeared a number of months back it bears highlighting the 12 main reasons for business failure:
- People venturing into business without being entrepreneurially inclined.
- The quality of the business idea – i.e. there is no real business opportunity.
- The lack of adequate research being done, – generally before the business is started.
- The lack of adequate knowledge on small business practice and how to run a successful micro enterprise.
- Undercapitalization and/or the lack of the ability to grow a business from a small capital base.
- The mismanagement of money and internal fraudulent activities.
- Not understanding cash flow and how to remain solvent.
- In most African countries, selling on credit and family helping themselves to the products of the business.
- Poor or no record keeping.
- Lack of management and the specialists versus the generalist.
- A lack of effective marketing and plans for growth & expansion.
- Failure to beat competition.
Often people go into business out of shear necessity and not out of passion, with the results that the business ends up failing simply because the person is not cut out to run a business of their own. Others have the impression that their own business means freedom to do their own thing and to escape a horrid situation – unemployment, or to escape a bad boss, or because they are unhappy in their job. But the sad reality is that if you do not have the right amount of entrepreneurial inclination or internal ‘gifting’ you are setting yourself up for failure right from the word go.
We have all been gifted differently and all have an inner make up, interests, inclination and abilities that are vastly different. Our preferences are also so different, so whereas someone will prefer to eat sweet things, others prefer savory. Some like the color red, whilst others prefer blues and greens. Some like to play sport, whilst others and happy to just watch it on the TV, while still others do not care for sport at all. Our inner make up often determines what we prefer, the choices we make and whether we will ‘naturally succeed’ in a certain area. Some are talented in the sports arena, others in music, others can draw and paint really well and others are mechanically orientated. I’d like to suggest that some people have the right inclination towards business and will naturally do well in their own business because of their inner make up, talent and ‘gifting’.
A business of your own is a harsh often unforgiving environment and for many thousands who are limited by capital, they do not have the luxury of employing others, therefore the owners of these one-person businesses have to be a jack-of-all-trades so to speak and manage every facet of the business. This takes a VERY special breed of person and this is where it certainly will go a long way if the person has the natural inborn ‘gifting’ to give themselves the best chance of succeeding.
So how do YOU discover whether you have this ‘gifting’, natural ability and are entrepreneurially inclined or not?
The DBSP has been testing people for their entrepreneurial inclination for over 20 years now and we have developed a series of assessment tests that you can take to discover whether you are entrepreneurially inclined to give yourself a head start – meaning you have what it takes to give yourself the best chance of winning. DBSP in collaboration with GEO have taken our highly successful tests and have put them on line! You can access them by just clicking a few buttons on your computer / tablet or smart phone. The 4 assessment tests are all self-marking so that at the end of each assessment test element you will receive a score for that particular element and a comment as to how well you have done. Once all 4 assessment tests have been completed, the website will produce a final grand score and produce a comment as to whether you are entrepreneurially inclined or not and by how much, percentage wise.
This is THE ESSENTIAL AND MOST LOGICAL STARTING POINT for any would-be entrepreneur, because you do not want to fail before you even start your business by not having enough ‘gifting’ to start out with? Go to https://store.geo.partners in order to access the online Entrepreneurial Inclination Assessment tests and for a small fee (10 US Dollars) you can find out for yourself whether you are cut out for business or not. Failure is not an option, so test yourself first! DO NOT START UP A BUSINESS OF YOUR OWN without first knowing if you have the inner capabilities, inclination, make up, talent and abilities first to give yourself the best chance of succeeding. ……