Business is a Trap-word. Its two main goals are Happiness (doing what you love) and Success (making Money).
Key Success factors in Business are: building assets that grow over Time; avoiding projects that need constant effort or investments; no single point of failure; no long-term dependancies on a co-founder, equipment or Resources.
The main reason Businesses fail is the wrong kind of dependencies. Short-term dependencies are fine. You must learn to lean on employees, trust them, and delegate. Long-term dependencies are risky and usually involve a co-founder. People still choose co-founders because they share the idea, want to share the responsibility and the joy, need someone to discuss with, or need financial support. The first three are Game of Self issues – Morality and lack of Self-love. Money is a Game of Life factor. If you feel you are the senior partner – more Diversity of Experience, more Resources – consider Hiring the junior one. If you feel you are the junior partner, ask yourself whether you would have any control.
A Business fails if you over-focus on Happiness while neglecting to earn Money. Industry choice is the strongest predictor of Success.
The number two reason why a Business fails is trying to create something that doesn’t exist. If it’s not financially sustainable, it’s a hobby.
The number three reason why a Business fails is creating more liabilities than assets. Best case are asssets that create Money over Time with no extra cost – Passive income. Start with almost-zero-but-Passive income. Then do Scaling. Worst case are liabilities that drain Money over Time with no extra benefit. Time is the most valuable asset. Annoying customers are drains of Time. Choosing your customers is a huge advantage in Business.
The number four reason why a Business fails is having no idea, yet desperately wanting to have one. It often leads to a franchise – a hybrid of having a Day job and a Business, taking only the very worst from both – no Freedom, no Diversity of Experience and high liabilities.
According to supply and demand rules, the best Business ideas are not mainstream. The market may be unfair to most Businesses, but that works to your advantage. Choose industries where Success exists and share back.
Keywords: assets, Business, co-founder, customers, dependancies, Diversity of Experience, franchise, Happiness, industry, investment, liabilities, Money, partner, Passive income, Resources, single point of failure, Scaling, Success, Time, Trap-word.
