B101.7 - Good Timing, Good Fortune, and Who You know |
The stats vary a little depending on resource, but something like 80% of small businesses fail in the first 5-10 years. There are three variables which must NEVER be underestimated when starting or sustaining a business and they include Good Timing, Good Fortune and Who you Know.
It is imperative to evaluate these as they relate to the success of others when you are thinking of trying to follow in someone's footsteps or create something new from scratch. Make sure if your role model was a benefactor of one or more of these, you factor that in when assessing risk for yourself.
As times have sped up, things have gotten even more transitional, so really be mindful of these items.
It is imperative to evaluate these as they relate to the success of others when you are thinking of trying to follow in someone's footsteps or create something new from scratch. Make sure if your role model was a benefactor of one or more of these, you factor that in when assessing risk for yourself.
As times have sped up, things have gotten even more transitional, so really be mindful of these items.
Good Timing
Above average people became millionaires during the dot com boom of the late 1990s. And in fact, many of them were really just average. Some people were graduating from college with degrees in Psychology and no real direction. They took jobs at places like AOL (America Online) as admin assistants. Within a few years, they were millionaires. During the same time, if you could talk on the phone, you could become a recruiter and/or headhunter and work from home and make 6 figures. Nobody could keep up with all the opportunities.
Anytime someone says, "You have to work hard to get ahead", think twice. There are a ton of great things that come from working hard, but a correlation between your financial or occupational success and your work is typically not one of them, believe it or not, and there is a mental mantra that has been running in this country and others that has lead many astray in this regard for a very long time.
During the California Goldrush, it's believed that not a single miner really struck it rich and kept his riches. The vendors who provided them equipment, clothing and food did exceptionally well. It's the vendors who provide the dreamers their wares that do well long term, and many of them come from families who have understood this commercial game for far longer than most can imagine.
Be wise in this area. Be patient. Work hard and watch for opportunities. Look for areas that are on the upswign with a long lead in and lead out cycle. That is becoming less and less these days but that is where to keep an eye on things. Resepect timing.
Many of us can name far more people who are financially successful due to good timing than hard work. Ask around and see what you find out...
Anytime someone says, "You have to work hard to get ahead", think twice. There are a ton of great things that come from working hard, but a correlation between your financial or occupational success and your work is typically not one of them, believe it or not, and there is a mental mantra that has been running in this country and others that has lead many astray in this regard for a very long time.
During the California Goldrush, it's believed that not a single miner really struck it rich and kept his riches. The vendors who provided them equipment, clothing and food did exceptionally well. It's the vendors who provide the dreamers their wares that do well long term, and many of them come from families who have understood this commercial game for far longer than most can imagine.
Be wise in this area. Be patient. Work hard and watch for opportunities. Look for areas that are on the upswign with a long lead in and lead out cycle. That is becoming less and less these days but that is where to keep an eye on things. Resepect timing.
Many of us can name far more people who are financially successful due to good timing than hard work. Ask around and see what you find out...
Good Fortune
Many people grossly underestimate good fortune or good luck. Karma or otherwise, this plays a massive role in your financial and occupational success.
There is a book called "Startup Land". It was written by the folks who started Zen Desk. It provides raw and transparent insight into starting up a venture capital driven software company at a time when the opportunities for basic needs were greater than they are today. One item in the book that is very refreshing is their acknowledgment of the "good fortune " as it related to timing and people that showed up at the right times to help them on their way.
In order to be successful long term without a few major wipe outs built in, you will need some good fortune. That said, wipe outs can be incredibly educational. Most don't find those without wipe outs to be nearly as deep or fascinating. Those with wipe outs are often far more interesting to talk too , as long as the trauma has subsided to some degree.
It was said that it takes about 10 years to mentally and emotionally recover from a bankruptcy. That seems like a good rule of thumb. If you find yourself in such a mess, be patient. Only time will repair the wounds.
There is a book called "Startup Land". It was written by the folks who started Zen Desk. It provides raw and transparent insight into starting up a venture capital driven software company at a time when the opportunities for basic needs were greater than they are today. One item in the book that is very refreshing is their acknowledgment of the "good fortune " as it related to timing and people that showed up at the right times to help them on their way.
In order to be successful long term without a few major wipe outs built in, you will need some good fortune. That said, wipe outs can be incredibly educational. Most don't find those without wipe outs to be nearly as deep or fascinating. Those with wipe outs are often far more interesting to talk too , as long as the trauma has subsided to some degree.
It was said that it takes about 10 years to mentally and emotionally recover from a bankruptcy. That seems like a good rule of thumb. If you find yourself in such a mess, be patient. Only time will repair the wounds.
Who you know...
Many people will be successful based on who they know. If you are born into a family who knows a lot of folks, especially those in politics or business in your area, the head start is rather astounding. If you are born into a family that has a lot of siblings, and you go into business with some or all of them, the benefits of the bloodline are significant.
Anyone "can be" successful. There are plenty of stories of immigrants with nothing building amazing businesses. There are also plenty of stories that have been buried about families controlling entiring industries that dwarf the immigrant stories told, because everyone lives off the dreamers.
When you are considering starting a business that others are in, be sure to always properly assess the benefits of "who the owner knew or knows" before trying to base your own business targets on the basis of another. It really is a big deal and just needs to be factored in when assessing the risk of a new venture. Pick something that has a good chance to work given "who you know". You needn't know "anyone" if you are a great carpenter and willing to go sell yourself, but if you aren't great at selling yourself, you'll need to work on that or find some people who would be "good to know" to become successful.
Anyone "can be" successful. There are plenty of stories of immigrants with nothing building amazing businesses. There are also plenty of stories that have been buried about families controlling entiring industries that dwarf the immigrant stories told, because everyone lives off the dreamers.
When you are considering starting a business that others are in, be sure to always properly assess the benefits of "who the owner knew or knows" before trying to base your own business targets on the basis of another. It really is a big deal and just needs to be factored in when assessing the risk of a new venture. Pick something that has a good chance to work given "who you know". You needn't know "anyone" if you are a great carpenter and willing to go sell yourself, but if you aren't great at selling yourself, you'll need to work on that or find some people who would be "good to know" to become successful.