What does it take to start a business? Pt.1.0

Many people ask me that question. Many more people think they know.

The experience is individual and personal. Here is mine from observations of my firm and others that came and went:

Opening the company is easy.

• The first 1-3 months are also easy. Not easy because you are making a lot of sales but easy because you are excited.

• 3-6 months a still fun. There are worries about sales but the excitement is still lingering. 'No one can do this better than me' and 'I am better than thou cause I own a company' attitudes prevail.

• 6-12 months see the closing down of the weakest companies.

• >1 year: Only 3 type of companies survive now: a) Those who have this as a life style business b) Those who want to make big bucks and will strive very hard c) Those who still are trying to figure out how to do what they want to do but have the will to stick around.
  

• 0-2 years: Your friends first complained and then some more. Now, they are angry because you never have any time to go anywhere or do anything. 7am - 10pm of working hours have converted compliments into concerns for health.

• 2-3 years: Things start settling down and your work hours get easy. More people are hired and the outlook looks positive.

• >3 years: Now, only 2 types of companies survive: a) Those who have this as a lifestyle business and earn enough to feed themselves and their families b) Those who are doing great and will turn into >$10m businesses

What it takes is patience. Determination. The drive to complete something you started. The will to survive on nothing for a while. The fun of working with your employees. The strength to take customer calls at 11pm on Saturday night. It takes a whole lot more to survive the guilt that drives you to work on Sunday; the guilt that tells you to work so your employees get paid. Only those who really have it can survive the stress of living under this guilt 24/7/365.

Many companies that I have seen being started have died. Many of them were competitors. Some of them were friends. Many more were acquaintances. They were owned by people 25-75. The first ones to go were the 25-29 age group ones. The rest were equally divided.

They were all started by people who knew they were the best and knew they would do it better than anyone could tell them how to.

The ones that survived were the ones with the above characteristics. The ones willing to rough out the troughs.

This is my personal opinion.