What Every New Entrepreneur Should Know

by Scott E. McGlon 

Irrational and passionate optimism is a "must have" in your entrepreneurial arsenal if you are going to make it through the ups and downs of owning your own business. That has been written and said many time and in many ways. This "blind faith” topped with a lot of "passionate drive" will get it done. Or will it?  Do you believe that either you have what it takes be a successful entrepreneur or you don't?  Thinking you have it, reading about it, studying it, talking about it, and certainly not acquiring ownership in a business gives you the title of a "successful entrepreneur".  If you look closely at all of those who have a proven record in being an entrepreneur possess characteristics that 95%+ of the population simple doesn't have - no matter how much education, money, or connections they have.  So, yes, in my opinion, you either have it or you don't but let's dig much deeper. 

Everyone has heard the long-standing stat that "two out of three businesses fail".  But what the stat doesn't show is the continuance of a certain percentage within the 66% failure rate and how the failure fueled and refined their quest to get up and try again.  Every successful entrepreneur has failed at some point in their career.  More importantly, some of the most successful people I have met have hit rock bottom at least one time prior to making it big on their own.  The difference is simple: failure either scares you enough that quitting becomes a real option or completely drives you to another level to try even harder.  Unfortunately, I would say at least 95% fall under the "once failed - won't happen again" group.  Successful entrepreneurs don’t let being rejected or failure keep them down. This "pride blocker" is part of the most successful entrepreneur's DNA. This is great and everything but doesn't really define the secret sauce that is truly the nucleus of every great entrepreneur.  While a lot of folks look at life full of wins and losses, most entrepreneurs look at it as wins and learned!

Going back to the certain percentage within the 66% failure rate, the one characteristic they come out on the other side with is experience with failure - a set of negative variables that ended in failure.  So, what is the secret that every entrepreneur should know? Take note - most entrepreneurs that have achieved success consistently deploy well thought out mental strategies to manage disappointment.  Huh? What a minute - all my life I have been told "be positive" and "think good thoughts". That's perfect when you are in the 5th grade!  Every great entrepreneur has a well-defined parameter of his or her business. It's almost like thinking through every scenario possible that could go wrong and having primary, secondary, and tertiary plan lined up ready to be executed without one ounce of frustration or distraction setting in.  This is where both resiliency and determination overcome and bury the many challenges any business owner faces - especially in the first 24 months being in business. 

Without a doubt, the majority of new entrepreneurs invest a lot of time knowing every aspect of everything that they think is going to go right.  Unfortunately, there isn't a lot of time invested in thinking about everything that's not. It's the bold and challenging road of determining every possible roadblock that you think could potentially happen and creating a game plan to counter it. This line of thinking and planning will also assist your pursuit of getting funding.  The ability to answer the tough questions thoroughly are the ones who usually get the biggest investors interested.  Good luck!       

Scott E McGlon is the President of McGlon Properties, LLC and the author of many blog post on MP Blog.  He has been a serial entrepreneur, investor, and president of many successful start-ups since 1998.