In the US there are 30 million+ people who are running an independent business for their main or supplemental income. We call them freelancers, solopreneurs, part-timers, or, simply, business owners, but what they all have in common is trying to build and grow a successful business.
But, are they successful? After working with 10,000+ people who have tried building a successful business, I can tell you, many fall short of their goals.
Using Umbrella’s data, we can share with you the main failure and success factors.
1. Doing fulfilment is a sales killer
We find that the most successful people focus their energy on getting clients, not fulfilling services. But, how can you build a business without fulfilling services?
The simple answer is, focus on sales and get someone else to fulfil (be mindful for your margins), or get a partner that sells you. But just having your skills posted on a marketplace won’t take you far.
2. Margins
Why would a company with a quality product or service, provide you with good margins as a small reseller?
The simple answer is, you won’t get good margins. You need to either become part of buying group, a sub-buyer, or have personal relationships. Whatever you do, make sure to have 25 per cent+ margins or your business won’t survive the first six months.
3.Prospecting
How do you get clients?
The Simple answer, if you don’t know how, you need to learn fast! Acquiring online marketing skills and salesmanship skills is critical no matter what industry you’re building your business in.
Whether your trying to setup a baby-shirt eCommerce store, sell digital marketing services, or becoming an insurance agent, you need to build a pipeline of ever-flowing leads.
4.Time management and accountability
Most people start a business while having a day job, which makes their schedule tight and hectic. But even those who jump head in are not building a real action plan with the right goals and tasks and are not consistently tracking and returning to these tasks.
This is a company killer and unfortunately something that pesters all entrepreneurs of all sizes and types of companies, including venture backed high-tech companies.
Simple answer…build a plan, review and revise it with a couple of people you trust or review online resources.
Once you build the plan, follow it persistently, it will be your road to success.
5.Mindset (more than everything)
The hardest thing to change, and the leading cause of failure is trying to build a business without having a success mindset.
It can be daunting to start a business, and the more you dive into it, the more tasks, costs, questions, issues you have, the more you start doubting yourself. That doubt, which is basically insecurity your ability to succeed, will many times lead to a premature decision to quit.
Simple answer…there are many business mindsets courses online, and many free resources. Watch and implement. Just having a winner’s mindset is not enough, but you can’t do without it.
At the end of the day, starting a business takes work. Online resources and platforms, such as ours, are moving ahead the gig economy, helping everyday people access the same products, margins and training that was till recently reserved to large companies, by offering the following benefits:
- Great products and margins (45 per cent+)
- A-Z product, marketing and sales training
- Marketing tools and collateral
- Live training and support
- Unique algorithms that see where you’re stuck in your growth and what you should do to get “unstuck” and growing again.
The future looks bright for independents.
Itamar Shafir, CEO, Umbrella
