Why Businesses Succeed

​And How to become an entrepreneur without money & How to become serial entrepreneur.

Instead of starting with why the businesses succeed, I would start with the most important factors which makes almost 90%+ businesses fail initially or later.

As per my research, exposure & learnings, people who start and run commercial enterprises can be distinguished into three categories based on their mindset.

1.The Businessman
2.The Industrialist
3.The Entrepreneur

The most positive, profound & sustainable impacts are created by - the Entrepreneur mindset people & least by the Businessman-mindset people.

Having Mentored businesses from micro businesses to multi-million dollars organizations [startups as well established businesses] and having worked with some of the most accomplished people in all the three categories, I have identified the following causes which makes businesses fail

1.Believing that their ideas are unique even if they are just me too
2.Launching without real-time testing on the target customers
3.Assuming they have a breakthrough idea or product, fail to market effectively, using the correct marketing channel
4.Hiring people who would agree with them or whom they feel can control. Failing to hire the talents who have complementary skills and are disruptive thinkers
5.Spend too much resources on planning, but developing the capability to execute, implement and take actions
6.Having the mindset of businessmen Choking the growth because of being too preoccupied with cost-cutting and only focus on profit and loss
7.No understanding the difference between wastages, rejections, cost, expense & investment
8.The startups fall into this trap of not having crystal clear and vetted cash-flow plan till breakeven
9.Creating hype but under delivering
10.Either Not Soliciting or Not paying attention to customer's feedback
11.If succeeded initially, moving away from the basics that brought them the success
12.Again it is for startups, wearing too many hats, especially for those task that can be outsourced and freeing time that can be utilized to refine product and marketing
13.Failing to utilize the technology to reach to the customers effectively & reduce overheads
14.Failing to hire and or manage Millennials
15. Hiring a consultant but instead of exploring with the consultants newer way of looking, making the consultant what they were doing
16.In manufacturing, being more concerned about the numbers, without realizing the cost of reworks, rejections and wastages they incur while producing higher numbers
17.Not letting others challenge their ideas
18.This is again for startups, Not knowing that it is the time to quit and also Quitting too soon
19.Not transiting from their existing line into the emerging future line in time
20. Not upgrading theirs as well as employees skills on a continuous basis
21.This is again for startups, not enough follow-through and follow-up
22.Not seeking a mentor or advisor when get stuck
23.Try to accomplish too much too soon
24.Overcharging without clear ROI based value addition.
25.Poor grip on and spending total startup capital money before achieving profitability
26.Compromising with quality later or letting it slide
27.Insufficient working capital because of nonexistent budgeting
28.Loss of momentum
29.Indecisiveness inability to make key decisions in the face of difficulties, or decisions are made because of concern for the opinions or feelings of other people.
30.Conflict with staff, suppliers, creditors and customers

Additional Signs[to relevant ones above] of Businessman-mindset are given below by the practical wisdom quote in one of the post I read some times back

1.Luxury and Lies have Huge Maintenance Costs

2.Truth and Simplicity are Self-Maintained without any cost

3.Honesty may not Always Pay, but Dishonesty always Costs

4.Lies have Speed, but Truth has Stamina

5.Forgetting the age-old rule that everything costs twice as much and takes three times as long as expected, if we are fixed on getting there on a "overnight success perception".

6.Going for Quick-fixes, which are just that, they don't solve the cause of the problem

7.Assuming that customers, employees and juniors won't understand, what you stand for

8.Trying deliberately to put blame on customers when at fault

9. OVER PROMISE AND UNDER DELIVER

The process at a glance of an entrepreneurship journey

1.Identifying the idea

2.Crystalizing the idea

3.Validating the idea for whether it is really a unique one or a me-too. If me-too, find what specific position you may occupy in your customer's mind

4.Identifying Revenue generating model

5.Identifying the marketing channel

6.Identifying the technology

7.Exploring automation options

8.Exploring what needs can be outsourced to experts

9.Exploring what you need to do yourself or in-house

10.Creating a professional Financial Plan including the initial funding

11.Identifying Business Model

12.Enrolling Mentor

13.Vetting the business plan

14.Running the test in a sample target market

15.Launching the venture

16.Building capability

17.Managing the venture

18.Creating plan to dominate niche

19.Identifying the future trends to migrate to

How to Become an Entrepreneur

I.List your strengths, Decide whether your personality is a good fit for entrepreneurship

II.Identify the Right Business for You.

III.How to Get Startup Ideas

1. Ask your friends what annoys them, Entrepreneurs get inspiration from their frustrations all the time. 2. Brain storms with different segment of people and users 3. Make something better, cheaper or convenient 4. Focus on a growing category

5.Learn to spot the emerging trend

6.Avoid whatever is popular

7.Learn about other businesses that interest you, then explore whether you can Identify, create & Fill an un-served demand or need

8.Network with other entrepreneurs

9.Research patent applications

IV. How to Validate Your Startup Idea

1.Know Your Target Audience Before You Spend a Penny
2.Find out if your product or service is functional enough to satisfy early customers

3.Research and test your ideas through interviews with potential customers

4.Listing the problems you assume your product will solve and then asking for opinions and a ranking of each problem

5.Create an online page that describes your product or service. Ask people to submit their email addresses in exchange for early access; a free subscription, membership, or product; a discount, product updates, or some other compelling offer

6.Create a video if possible, showing how your product or service would make your customer's life better on social media, paid search & your webpage

7.If it is possible to reach & make the customer try out your idea, product or service do that & video record their feedback and post it on social media , paid search & your webpage

8.If there are competitors, Do a competitive analysis and find out what is your positioning by way of value addition to your potential customers

9.Now bounce this idea with entrepreneurs who are both in the same as well as different businesses, mentors and CROWDSOURCING and Professional platforms – in an manner so that your idea does not give others ideas.

V. Design a business plan

1.Clearly outline how you will make money, if you are not sure, don't even think of starting your own business at this point
2.Calculate & vet through experts, how much it will cost you to provide your product or service to the customer
3.How much will you charge the customer for your product or service
4.Why would they pay you, Why would they shift from their existing providers
5.If possible, get an commitment or an order or better still an advance payment from your potential customers
6.Include all the feedback of the customers, and what you have done to remove the pain points
7.Which marketing channels you would use to market
8.How would you reach out to your prospects to create awareness, promote product and run your sales campaign
9.How will you increase the volume of your business
10.Be crystal clear in positioning to identify in what ways will your business offer a better deal than your competitors
11.What kinds of people will you need to hire
12.Can the work be done without these people say through outsourcing
13.Get the realistic calculations of when you would breakeven & when you would start making profits
14.How much money you would need, at the start, to launch and to operate till your revenue starts generating
15.How & where would you invest money
16.How much would you raise from your own sources and how much you need to raise from outside
17.If there is change in markets, technology, customer's needs or any eventuality, what is your exigency plan
18.When you start making the profits how would you reinvest and scale up the business

V. How to Find a Cofounder

A.Decide whether you need a cofounder

B.Advantages to having a cofounder

1.You have emotional support

2.They bring different skills, knowledge, and connections

3.Many venture capitalist investors prefer to finance in case you have cofounders

C.Drawbacks to having a cofounder.

1.There would be conflict

2.Equity split

3.Mismatch in ethics, work habits, and complementary personality

D.If you decide you want a cofounder, the next step is finding one

1.Look within your own network first. Choosing someone you already know, or whom your connections can vouch for, is much less risky than a stranger

2.There are a few "cofounder matching" services you can turn to like CoFoundersLab, Founder2be, FounderNation you can get few more on the net

3.You classmates from college and high school

4.Past coworkers

5.Local startup networking events

6.Business conference, exhibition and meets

7.Teaming up with a customer

VI.Decide your business's legal framework

VII.Vetting your business plans

1.The best way to vet your business plans is by approaching any of the funding partner

2.Your Mentors

3.Professionals who are experts

4.Other entrepreneurs

VIII.How to Get Funding for Your Startup

1. Family and Friends 2. Crowdfunding – search by typing the top crowdfunding platforms in the google 3. Angel investors 4. Venture Capital 5. Seed capitalist 6. Bank Loans 7. Microlenders and nonprofit lenders 8. Government schemes
IX. Starting a business with no money
1. Keep your job 2. Stick with something you know 3. Wear all the hats Do all the work yourself initially at least the most important ones 4. Offer a service that does not 5. Tell as many people as you can, tell all your friends, your family members, your coworkers and request all of them to spread the word in their circle follow the 5 feet rule anyone coming within 5 feet should know about your business in an curious an interesting ways & not consider you a pest 6. Ask for help in CROWD-Sourcing Platforms for the task that can be done online e and can be outsourced 7. Use college and school students who needs the real experience as interns 8. Get paid fast or upfront Ask for at least 50% payment upfront Offer incentives to pay early 9. Make it convenient for your customers to pay you & create a loyalty bonus

10.Use an Incubator Sometimes they offer office space or shared administrative services. Most incubation programs are sponsored by local or regional economic development organizations, and some are sponsored by colleges and universities.

11.Find an Accelerator. These are much like incubators in that they are designed to provide funding

12.Differentiate yourself. Small things make a big difference

X. Join or Create & actively participate to contribute to others in a meaningful way without selling 1. Professional Forums 2. Mastermind groups 3. Social groups 4. Online groups like meetup
XI. Your almost free advertising options

1.Submit guest blog posts to relevant blogs with your link

2.Cross-promote with your strategic

3.Set up a free website

4.Submit your business to Google business Listing

5.List your company in free directories related to your niche

6.Offer free consultancy, free evaluation, free advice, free checkup or any relevant yet valuable

7.Create an event get few business whose clients would be attending your event as sponsors to cover your costs

8.Create your business page on FB & LinkedIn

9.Include your website, Facebook page, and Twitter handle in your email signature.

10.Write articles relevant to your niche and distribute them to article directories & blog websites

11. Do not try to look for scamsters to advertise for get rich quick offers

12.Don't believe stories about overnight success. They are simply myths

XII.People You would need during your Entrepreneur Journey

1. Mentors you admire 2. Partners you respect 3. Employees you can trust 4. Friends you make time for 5. A family that supports you

XIII.Mistakes to avoid while running your business

1.Involving close friends/family in running of business & giving them managerial positions

2.Giving friends/families goods on credit

3.Blindly Trusting the judgment of people without their having expertise

4.Not focusing on promoting on a war footing

XIV.Issues you would face ranging from
1.Sourcing funding
2.Getting good partners
3.Attracting right people
4.Building a good team
5.Marketing
6.Managing cash flows
7.Getting the credit
8.Making clients pay on time
9.Production/service/delivery exigencies
10.Being involved with inexperienced persons

XV.Why Businesses Succeed

Basic Mindset

1.Believe that you are in it for the long haul.
2.Love what you are doing.
3.Enjoy working hard as well as SMART
4.Living and Acting the concepts of 6 Sigma & Lean manufacturing to continuous improve and reduce wastages
5.Focusing on value addition & Giving
6.Always Insist on the Very Best & Not Compromising with Excellence
7.Keep the big-picture in the back ground but focus on only the next step
8.Always Learning from Their Mistakes & Failures
9.Total belief in self and their idea [after they have done the complete due diligence] & not giving up
10.Creating a product or service that gives your customers compelling reasons by giving relevant benefits superior and unique to competitors
11.Using
12.Honing the skills of Negotiations, Selling, Problem solving & creativity of self and the team
13.Energizing the market, customers and employees & raising funds with their energy
14.Continuously reinventing themselves to make their own offering obsolete
15.Treating employees, suppliers and partners fairly and respectfully
16.Effective understanding and managing finances
17.Great social & professional networker
18.Ability to foresee & adapt to emerging trends
19.Taking tough decisions and taking prompt action with speed
20.Developing a complete business plan before commencing business operations
21.Conducting a complete market analysis before producing or offering the product or service
22.Thoroughly developing advertising, promotional and sales programs
23.Ensuring that there is absolute high degree of competence, capability and integrity demonstrated by self & employees
24.Making the customer both external as well as internal in all their policies, actions and communications
25.Ability to learn faster than the market
26.Respecting the people who challenge you & challenge the status quo
27.Nurturing talents and hiring people for complimentary skills & maintaining successor ready all the time
28.Read every day
29.Focus on challenging tasks & challenge and compete with themselves everyday
30.Hang out with people whose age differs from yours