Examining how successful entrepreneurs have grown and scaled businesses can give us insights that we can be easily replicated. This should mean businesses can survive for the long term. Let me explain.
The Harvard Business Review (HBR) have concluded that good management skills matter within a business, no surprise there, but according to them it is a better indicator of growth than passion or even hard work of the owners. This is a surprise. We are always told that hard work pays and that if you have a passion for what you do you can drive a business forward, but HBR disagrees.
Here are some sobering thoughts. Of the 660,000 new business start ups that were registered in the UK in 2018, it was estimated that 60% will go under by 2021 – that’s before the crisis hit. Even scarier – 132,000 have already stopped trading.
So, how can you stop your property business from becoming one of these statistics and leave you with a nice pension pot, being able to hand in your notice or leaving a legacy? If you believe HBR then improving your management skills is important; not just having passion and drive for your business.
Forbes have also concluded that when business owners access external help it has a much longer lifespan (longevity – that’s what we want) and a 46% increase in profit margin (well that is also a nice bonus). You may be saying to yourself – well you would say that because you are a business coach! But this has been proven over many years and sectors. Getting external support means you can increase your own management skills, get a different perspective, enable you to grow and be more profitable.
What did Forbes find were the top attributes of successful entrepreneurs?
- They ‘do’ consistently, not just once but over again in the right direction – are you going in the right direction, still? Do you need to re-evaluate this after the crisis?
- They served a clear audience with their product or service– is there a gap in the market for what you do? Who is your target audience? Really nailing this down gives you great clarity for your strategy
- They had a focus– laser focus combined with passion can really helps with energy levels, so long as it is combined with management skills!
- They had a business strategy– written down, researched, well thought out and small enough for you to use and remember. A strategy should be living document, not left on a shelf!
- They had and shared a vision– the focus and strategy help here, but sharing it also provides clarity.
I hope that this is what you do, but please be honest with yourself. Let’s look at the opposite side, that problems did Forbes find were faced by the unsuccessful businesses?