6 Lessons Entrepreneurs Should Learn From Startup Statistics

Many people dream of self-employment, but most of us know that running a business isn’t an easy task, especially when you’re starting up. Even if you’re an experienced entrepreneur and the hectic first years of starting up are behind you, you can’t afford to kick back and relax. Since you work in a competitive environment, it’s important to keep up with other players on the market.

Therefore, it’s important to prevent failures, and the best way is to know valuable lessons and use them for your career success. To bring your business to the next level, pay attention to the top 6 lessons entrepreneurs should learn from stats about starting a business.

#1 Entrepreneurship Is A Long-Term Investment

For most people, it’s not a secret that starting a business with no money is hard. Thus, most entrepreneurs get ready to fund their businesses before starting up. In fact, 80% of startups are self-funded which means businessmen are ready to take care of their spending. Moreover, entrepreneurship can require unexpected expenses, and it’s one of the main reasons why 60% of small businesses are break even or continually losing money.

It’s a common misconception that you will only need money to buy startup supplies and advertise your business. Entrepreneurship is a long-term investment, and you need to know how to fund your startup.

#2 Pay Close Attention To Your Finances

Do you know that the majority of business failures come from cash flow problems?

The brutal truth: no matter how experienced as an entrepreneur you are, you may still be bad at managing your finances. The worst thing for an entrepreneur is to run out of money when you start attracting clients. Thus, it’s important to manage your finances better. Although entrepreneurs often wear many hats, it can be difficult to create a solid financial plan on your own, so it’s smart to get math help from experts to calculate the contribution margin (CM) first.

The bottom line? Taking care of your finances is a key to entrepreneurial success, and you can consult niche experts to ensure you’re moving in the right direction.

#3 Entrepreneurial Partnership Is Better For Business

If you’re not a team player, you’d better stop and think for a minute: maybe it’s time to collaborate with a reliable partner to grow your business faster? It’s proven that working in a team of two is the best combination as you can raise 30% more money, have almost 3X the user growth, and are 19% less likely to scale prematurely.

When you collaborate with a partner, not only will you share risks, but you will also get support and find a mentor to get through tough times. As a result, collaboration is essential to successful entrepreneurship.

#4 Focus On A Small Team Of Exceptional Employees

Here’s the deal: you don’t need to hire a big team of workers to succeed. In fact, 93% of SMEs have less than 9 employees in the European Union.

When you’re pressed for time and money, hiring is especially critical for your business. Although the success of your company depends on your leadership, it’s also important to hire talented people only. Since startup job descriptions and responsibilities are often not carved into stone, you need to find exceptional employees who can help you in many aspects.

#5 Find A Work-Life Balance & Stick To It

Starting up a business requires much time and effort, so many people work hard to get great results. According to statistics, 97% of small business owners work weekends.

At first blush, it may be fine. However, this lifestyle may lead to a burnout sooner or later. To stay motivated, it’s important to keep a work-life balance:

• Take days off
• Delegate tasks
• Learn time management tips

The point is you should understand how to work smarter, and therefore find time to rest and boost inspiration.

#6 Mistakes & Failures Are Good For Business Success

No matter how hard you try, you may make mistakes from time to time. Once you face a problem, don’t hasten to give up: you can learn from your mistakes to succeed in the future. Actually, founders who have failed at a prior business have a 20% chance of succeeding.

Believe it or not, Jeff Bezos, Reid Hoffman, and Christina Wallace are just a few of entrepreneurs who failed before succeeding. Although nobody dreams about nurturing a failing business, it can happen sometimes, and the best thing you can do is to learn from it.

Conclusion

As an entrepreneur, it’s important to stay alert and put much effort into running a successful business. Although we often learn from our mistakes, it’s better to keep an eye on startup statistics to make predictions and avoid failing your business.

 

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