Do you have a commercial idea that lights you up? Or maybe you want the freedom of being your own boss? Either way, once you’ve made the decision to create your own business, there are three key areas you’ll need to cover if you want to make your dream a thriving reality.
Starting a small business from scratch can easily become overwhelming. Many startups make the mistake of rushing in with guns blazing, only to come crashing down in two to three years because they didn’t build the right foundation.
This guide explains the mindset needed to overcome the typical challenges of a new business. Don’t miss Part 2 for the logistics and financial planning to set you up for long-term growth, plus Part 3 for the marketing steps that will earn you lots of customers.
If you’re dreaming of being your own boss, but haven’t fully decided yet what type of business is the right fit, this guide is for you: Most future-proof small business ideas you can start today.
And if you're looking to bringing new ideas to life without any cost barrier, check out the Business Starter Kit – get all this for free: LLC registration, a .com domain, business email, easy website builder, SEO tool to get found online, and social media tool to for fast posts to grow your reach. What’s stopping you?
Pillar 1: Mindset
The core foundation for new business owners is often overlooked, but as any successful entrepreneur will tell you, having the right perspective is the bedrock that can make or break your success levels.
While skills and strategies are crucial, mindset ultimately determines your ability to navigate difficulties and seize opportunities. Let’s explore the factors that will help you to smoothly overcome the inevitable challenges you’ll face as a startup:
Entrepreneur Insights
This wisdom covers the hard won experiences of high achievers, who started with an idea and made a major impact on the world.
Resilience
As with all growth, every startup will face unforeseen difficulties and failures, so it’s crucial to be able to bounce back from setbacks. This is one of the key aspects that differentiate startups which become established, and those that fold within two years.
Tips:
- Fail Fast to Learn Fast — see failure as part of the process, and a valuable tool for growth. Jeff Bezos, founder of Amazon, said: “It’s not the failure that defines you, it’s how quickly you learn from it.”
- Embrace Uncertainty — accept from the beginning that uncertainty is baked into the journey, and learn to roll with it. Sara Blakely, founder of Spanx, said: “You’ve got to get comfortable with being uncomfortable.”
- Manage Stress — develop good coping routines that help you unwind and find balance, like exercise, meditation, and mentorship. Arianna Huffington, CEO of The Huffington Post, said: ""Stress is not a badge of honor. It’s a sign that something in your life needs to change."
Risk vs. Caution
Entrepreneurship is inherently risky, but successful startups understand when and how to take calculated risks that offer the highest potential rewards, while minimizing losses.
For example, startups can take longer than expected to turn a profit, so instead of putting all your eggs in one basket, as a Phase 1, it’s a good idea to keep your current job to cover the bills while you setup your new business. That way you’re not stressing out about putting food on the table, and can keep your focus on growth.
Tips:
- Be Strategic Not Reckless — when taking a risk, take time to weigh the impact of failure, and have contingency plans in place. Richard Branson, founder of Virgin Group, said: “The key to risk-taking is to protect the downside.”
- Start Small & Scale Up — test the waters with low-risk experiments, such as a minimum viable product (MVP), before you devote full resource to it. Mark Cuban, owner of the Dallas Mavericks, said: “Start with what you can control, and grow from there.”
- Know When to Let Go — sometimes, the main risk is refusing to pivot from an idea that isn’t working. Recognize when it’s time to adapt. Reed Hastings, co-founder of Netflix, changed his original business model from DVD rentals to streaming, which ended up revolutionizing the entertainment industry.
Growth Mindset
In today’s fast-paced world, successful entrepreneurs need to be committed to continuous learning and skills improvement.
One of the top speakers in the business leadership space, Simon Sinek, sums this up: “The mindset with which we approach situations is what separates high performers from everyone else. The ability to embrace an infinite mindset, and view every challenge as an opportunity to grow, is the key to lasting success."
Tips:
- Seek Different Perspectives — successful entrepreneurs have the broadness of mind to understand that gathering fresh perspectives are invaluable, both as a sanity check and to cover their blind spots. Elon Musk said: "I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better."
- Don’t Be Afraid of Mistakes — conversely, go your own way when you’re certain about a decision, even if everyone disagrees with you. And if you fail, you will still learn a lot, for better innovation in the future. Mark Zuckerberg said: "The biggest risk is not taking any risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks."
Thinking Outside the Box
Being an effective problem solver is another key skill. Developing the ability to focus on creative solutions instead of limitations is essential for turning obstacles into opportunities.
Tips:
- Focus on Customer Pain Points — many of the most successful startups began with an innovative idea on how to better solve people’s problems. This will immediately give you a leading edge. Prime examples of this are Airbnb and Uber. Tony Robbins said: “Find a problem that is universal, that affects people every day.”
Another respected entrepreneur, Tim Ferris, said: “Scratch your own itch”, meaning if you create a solution for yourself, it’s very likely there will be many people looking to solve the same problem.
- Be Resourceful — another factor that will instantly give you a boost is learning to do more with less, especially as a startup. Barbara Corcoran, real estate mogul, said: “I’ve learned that resourcefulness has more to do with success than intelligence.”
- Be Adaptable — to effectively problem solve, you’ll often need to think in new ways, where there is less restriction. Creative solutions also mean being adaptable to new situations. Steve Jobs said: ""You have to be willing to pivot, or else you're going to be left behind. You have to be able to take what you've learned and adapt to new realities."
The WHY
Your reason or purpose for starting a business is going to be the driving force that carries you through when things get tough. While the goal is often financial success, the most successful entrepreneurs have a strong interest in their work, sustained by deeper personal meaning.
This is the rocket fuel that stands the test of time, giving you the determination to really smash it. So it’s worth taking the time to really think on your WHY. For example, helping people who are experiencing something you once struggled with is far more rewarding that simply making money.
Tips:
- Persevere — diving deep with your deeper reason for starting a business, and reaffirming it daily, is the magic sauce that will keep you going when many other startups fold. Steve Jobs said: "I'm convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance."
- Balance Enthusiasm with Practicality — meaning is vital, but it needs to be grounded in clear planning and consistent action steps. Also make sure that your passion aligns with market needs and customer demand.
Barbara Corcoran, who built a real-estate business that she sold for $66 million, said: "Don't you dare underestimate the power of your own instinct. But make sure you're working from a smart plan, too."
Discipline & Focus
These two qualities are also essential ingredients for success. Once you have your WHY, discipline and focus need to be developed like a muscle, or your business will never get off the ground.
Tips:
- Define Clear Priorities — break your bigger goals into more bite-sized, actionable steps, and focus on accomplishing them daily. Entrepreneur leader Gary Vaynerchuk said: “Focus on the few things that actually matter. Don’t get distracted by the noise.”
Learn more about setting SMART goals for your small business.
- Manage Your Time — effective time management is vital when running your own business. Tim Ferriss, who authored the popular 4-Hour Workweek, said: "Focus on being productive instead of busy." He advises adopting techniques like batching tasks, and blocking out time with no distractions to improve productivity and focus.
- Know When to Rest — discipline also includes knowing when to take a time-out to recharge your batteries, so you can maintain long-term productivity. Arianna Huffington, founder of The Huffington Post, said: "We think, mistakenly, that success is the result of the amount of time we put in at work, instead of the quality of time we put in."
Long-Term Vision
Successful startups are good at balancing immediate business needs with future growth needs. You need a strong vision of where you want to go, or it’s very easy to lose sight of ‘the wood for the trees’. With practice, you’ll build discernment about what matters and what doesn’t, in serving your end-game.
Tips:
- Don’t Run Before Your Can Walk — one of the main reasons startups fail is they bite off more than they can chew by trying to grow too quickly. It’s better to go slower, step by step, to make sure your business doesn’t cut corners on quality. Jeff Weiner, CEO of LinkedIn, said. “You have to have a long-term vision, but also execute in the here and now in a sustainable way.”
- Prioritize Strong Values — if you maintain strong core values, you’ll be like a tree with deep roots that can’t be blown over, compared to fly-by-night companies that are just trying to make a fast buck. Tony Hsieh, who created Zappos and LinkExchange, said: “Our belief is that if you get the culture right, most of the other stuff, like great customer service or building a great long-term brand, will happen naturally on its own."
Supportive Network
Building a reliable network of advisors, collaborators, and suppliers is vital for long term business success. You’ll need guidance from people you trust to help you make the right decisions, gain new perspectives, and get moral support when things are difficult..
Tips:
- Find a Mentor — build relationships with key people who have experience in areas you lack. Steve Jobs mentored Mark Zuckerberg for example. There are a number of courses and online coaches these days where you can find the right fit.
Denzel Washington said: "Show me a successful individual and I’ll show you someone who had real positive influences in their life. I don’t care what you do for a living, if you do it well, I’m sure there was someone cheering you on or showing the way."
- Establish Trusted Advisors — invest in a team of people who can guide you in areas like legal, financial, and technical matters. Warren Buffet said: "Pick out associates whose behavior is better than yours and you’ll drift in that direction."
- Collaborate — bouncing feedback and support with other entrepreneurs will really help you stay motivated, as well as gain valuable knowledge. Michael Jordan, business man and former NBA player, said: "Talent wins games, but teamwork and intelligence win championships."
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Common Startup Mistakes
- Not Doing Your Research — you may have a great idea for an awesome new product, but if the market is already saturated with competitors, or if there’s no demand at your price point, you’ll be in for a huge waste of time and money.
- Sketchy Planning — it may be tempting to focus on the creative stuff when you’re just getting started and skip the boring Business Plan. But that will only cause needless problems further down the road. Make sure you work on your long term vision, not just the short term.
- Poor Financial Management — it’s common for startups to overspend in the beginning, and dig themselves into a hole they can’t climb out of. On the other hand some companies under-price themselves, and also end up unable to cover costs. Another big mistake is failure to separate your business and personal finances from the get-go.
- Ignoring the Legal Stuff — no-one likes tackling the fine print, but failing to tie up loose ends like registering your business, signing formal contracts, getting licenses, and following local regulations can land you in hot water later. Best to bite the bullet at the start.
- Consistency — if you’re starting a business thinking you can have an easier time than being employed, think again. For at least the first year, you’ll need to fully dedicate yourself to getting your startup off the ground. Especially with your marketing, you need to consistently take action to grow your business.
- Weak Marketing — consumers rely on websites, search engines, and social platforms more than ever to decide what to buy, and they’re spoilt for choice like never before. So it’s important to get this right. Find out how in the Marketing Checklist section below.
- Overreach — a major pitfall for many startups is getting too enthusiastic and unfocused. They offer too many products or services at the same time, which can dilute your brand and stretch your resources too thin.
Likewise rushing your launch or trying to scale up too quickly can put you in an overwhelming situation and lead to customer complaints, which will damage your brand reputation.
- Ignoring Customer Feedback —speaking of unhappy customers, make sure you keep an eye on what people are saying about your brand. And bear in mind that negative feedback is actually a great opportunity to show you care. Learn more: How to write review replies like a pro.
- Bad Team Management — the two main things that inexperienced business owners get wrong when building a team are hiring people that don’t fit the skill requirement, and micromanaging staff. This leads to low morale within your team, and burnout for you as the business owner.
- Inflexibility — it’s vital for any startup to be adaptable. You’ll encounter many road bumps or surprises along the way, and you’ll need to be flexible enough to pivot when needed to turn them to your advantage.
- Neglecting Networking — failing to build relationships in your industry can limit opportunities for invaluable guidance, and even lucrative future partnerships.
- Burnout — this is a tricky one, since it’s really easy to overwork when you’re the owner of a new business. But burning the candle at both ends can lead to poor decision making, and poor health. It’s important to take time off to recharge.
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Wrap up
This three part guide explains the Three Pillars that create an unshakeable foundation for a small business startup, so you’re all set for long-term growth. Part 1 has covered the mindset needed to succeed, so you can keep going when things get challenging. Don’t miss:
So as not to overwhelm, we’ve focused purely on what you need to know in the early stages of starting your small business. But we link to more advanced guides throughout, so you can learn more when you feel ready.
If you want a quick steer on the right tools to make starting a small business easier, including a short Quiz that offers recommendations based on what stage your business is at, check out the Build & Grow Hub.
And if you're looking to bringing new ideas to life without any cost barrier, check out the Business Starter Kit – get all this for free: LLC registration, a .com domain, business email, easy website builder, SEO tool to get found online, and social media tool to for fast posts to grow your reach. What’s stopping you?
Frequently asked questions
What are the most successful startup business ideas?
Find out which skills are going the way of the dinosaur because of AI. Explore startup ideas you can try in your spare time to see if you want to take them full time. Also discover the two most booming industries to build a business around.
Read: Most future-proof small business ideas you can start today.
How to create a successful startup?
Startups that have long term success are built on core principles or pillars:
- Mindset — as an entrepreneur, you’ll need resilience, a balance between risk and caution, be able to think outside the box to overcome challenges, stay focused on why your startup has meaning for ongoing motivation, have a clear vision of your long term goals, and a support network to bounce ideas off or learn from.
- Logistics — you’ll need to setup a solid practical foundation to build on, like a strong Business Plan, financial planning, business registration, and any relevant business licenses.
- Marketing — you could have the best products or services on the planet, but it means little without good marketing to let the world know, and to continue attracting customers to grow your profits. This guide gives you a startup marketing checklist.
This guide comprehensively covers all three pillars. To dive deeper than the essentials, and learn about all the marketing strategies you can use to monetise your startup, read: Need-to-know marketing strategies for small business startups.
How to build resilience?
As with all growth, every startup will face unforeseen difficulties and failures, so it’s crucial to be able to bounce back from setbacks. Resilience is an entrepreneurial muscle you’ll build over time.
Key mindset insights that build resilience are:
- Fail Fast to Learn Fast — see failure as part of the process, and a valuable tool for growth.
- Embrace Uncertainty — accept from the beginning that uncertainty is baked into the journey, and learn to roll with it.
- Manage Stress — develop good coping routines that help you unwind and find balance, like exercise, meditation, and mentorship.
How to develop a growth mindset?
A growth mindset is all about being committed to continuous learning and skills improvement. All the most successful entrepreneurs embrace this.
Two of the main things to keep in mind for building a growth mindset are:
- Seek Different Perspectives — get feedback and information from a broad range of people to make sure you’re getting the big picture.
- Don’t Be Afraid of Mistakes — once you’ve considered all perspectives, trust your gut and go your own way. If you fail, you’ll have learned a lot.
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