In the last section we started looking at the types of businesses that you can consider when getting into business where I gave a brief summary of what they look like. In case you missed that post be sure to read it before you proceed to this next post.
Building any business is a lot of hard work especially when you are building from scratch. Statistically it is known that close to 90% of businesses fail in the first five years of getting started. Robert Kiyosaki, a world-renowned financial experts points to the fact that most of them fail because the owners have little to no previous experience in managing the various business systems.
Another reason is that due to a lack of training most people then lack the emotional stamina to go through the low points when it gets really tough. The world of business is definitely not a walk in the park which is why most people never go that route and choose to stick to their jobs.
Below are a few things to consider as you make your decision as you get into business but it’s still important to seek the advice of a professional as you do:
1. Leadership capacity
Building a successful business requires that you have the ability to work with people and relate to them. Not everyone will think like you do and being able to connect with such people will play a big part in how well your business does. If you are going to employ people to work for you leadership capacity is important.
If you feel you don’t already have the ability then you can learn by serving more people at home, at church, your job or a local club that you may be involved in. Take time to read books on leadership as well such as John C. Maxwell’s, “The 21 Irrefutable Laws of Leadership”
Ask yourself whether you like creating your own systems from scratch or prefer to work with readymade and proven systems. Creating a system from scratch involves a lot of risk because usually you don’t know how well it would function.
Successful businesses run on efficient systems that complement each other and getting to that level is not an easy process. If you naturally like developing your own systems this may be the business model for you but if not you may be more inclined to another business model that we will look at in the next post.
Are you a consistent performer? In business activities can be broken down into 2 categories which are income-producing and non-incoming producing. My mentor taught me that most of your time, at least 80%, should go to income producing activities because that’s what really makes the business grow.
Income producing activities include:
- Prospecting for new customers
- Talking to current customers
- Product creation
Non-income producing activities include:
- Administration work
- Paying bills
So you need to ask yourself whether or not you spend more time on income producing activities to give you an understanding of how well you would do in running a successful business.
I hope this information has helped you to gain a better understanding of how business works. In the next post we are going to look at another business model that has helped many average people become business professionals all over the world.
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Stay tuned for the next post and until next time,
Be all you can be!