Since my experience has shown me that success is a state of mind, this week on the Htet Tayza blog I ask; what are the biggest psychological impediments to entrepreneurial success?
Give a talented individual a good idea and they can do anything
Give a talented, driven individual a mind-blowing idea and the sky’s the limit. They have everything they need to build a Richard Branson-esque entrepreneurial career.
Yet so many budding young go-getters fail at the first hurdle. Statistics from Gallup show that 50% of new businesses fail within five years. Why? I believe that a business’ likelihood of success or failure depends on the person who sits at its head.
‘Behaviours and biases can make or break new ventures.’
Yes, sometimes a business will find itself facing a number of external factors which will reduce its likelihood of success. Yet economists have noted since the 1930’s that the behaviour of the person who heads a company impacts its chances of economic success.
According to Gallup: ‘As early as the 1930s, economists such as Irving Fisher and John Maynard Keynes stressed the impact of psychological factors on economic behaviour. Studies suggest that entrepreneurs can be susceptible to biases and errors, such as over-optimism, hyper-core self-evaluation (extremely positive self-assessment) or illusion of control. These behaviours and biases can make or break new ventures.’
The three psychological impediments most likely to break your new business
Knowledge is power. If you know what psychological impediments can break new ventures you can ensure that they don’t break your own. My experience has shown me that there are three psychological traits that are most likely to halt the success of a new business before it gains momentum…
- Worry: Every entrepreneur worries. As the head of a burgeoning company worry is a part of your daily life. Yet worrying is not productive. Spend your life worrying and you’ll walk back every decision you ever make.
- Fear: Everyone’s scared of failing. That’s human nature. However it can be detrimental for the entrepreneur looking to make their mark on the world. If you’re scared you may never take the chance you need to take to develop your venture. Every business decision comes with an element of risk.
- Perfectionism: To be an entrepreneur is to be a perfectionist. You need your venture to work, so everything needs to be perfect but allowing your penchant for perfectionism to govern every business decision you make could prove detrimental to your chances of success. Take the time to perfect the strategy you have decided to employ to capitalise on a lucrative opportunity and that opportunity may have just passed you on by the time you decide you’re ready to deploy it.
Capitalise on every opportunity
Basically the biggest psychological impediments to entrepreneurial success are those that foster indecision. Lucrative opportunities don’t grow on trees. If one comes your way you need to capitalise on it to ensure your venture grows to become an entrepreneurial success story.
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