New Business Owners Now – 6 Common Reactions – Which to Avoid, Which to Aspire To
Guest Blog by Gary Decker, Win Moves Coaching
2020 was a record year for new business startups. Reports like this Business Insider article show a 12% increase trend through September in year over year new startups.
Similar data from the Census Bureau showed significant growth in the second half of 2020 over the same period in 2019 in new businesses that are likely to hire employees.
However, 20% of small businesses could fail within their first year, and 30% within their second, according to data from the Bureau of Labor Statistics referenced in an Entrepreneur article.
The key to being in the 80% of new businesses that survive this year may be business owners’ reactions to the current challenging business landscape. Veteran business owners and leaders should be aware of their own similar reactions in early 2021.
6 Common Reactions
- Adjusting – Finding a steady stream of new ideas and options, some owners have grasped a new way of interacting with customers with gusto. New approaches are even improving profitability and efficiency. Digital interaction with customers is paving the way in many cases.
- Struggling – Finding change difficult, owners have retreated in their businesses or are having a hard time finding new ways of operating effectively. They do not quite understand the true needs of customers, nor the new unexplored opportunities their goods and services could provide. Social media is a challenge for many of them.
- Surviving – Doing whatever they can to hang on, to survive, to cope, they anticipate that business will revert to the way it was planned and where they felt they had control. When things “settle down” they will regroup and assess their next steps.
- Enduring – Fighting this to the end, some owners are pressing forward every day because they are stubborn and determined. They had an idea, they are going to make it happen, and they will not budge or adjust their thinking.
- Serving – Similar to this last group, but for different motivation, are those that are driven primarily to help others. They are making sure their employees are keeping their jobs, and they are concerned with serving clients. All this, of course, is at their own expense, literally and figuratively.
- Gliding – Lastly there are the lucky few that have started a line of business that is in the sweet spot of demand, riding high on a great idea executed at an opportune time. The key for them is staying focused, extending the run as long as possible, and parlaying that into the next success.
Key takeaways from these reactions:
- Keeping open and aware of the multiple paths allows you to pursue opportunity rather than wait and see.
- Powering through out of anger or service to others without adaptation is unsustainable and will not lead to extended success.
- Building on a solid business plan and success today allows agility and readiness for unpredictable events in the future.
Some common questions include:
- What do I do if I find myself withdrawing and lacking in action or ideas?
- Recognize that it is completely normal and understandable in situations of challenge or change. It can be very lonely sometimes as a business owner or leader. Reach out for help to find your gaps if you need to.
- I have so many new ideas, how can I do them all?
- You will fail at all unless you focus on the few. Understand the best alignment to your vision and mission. Consider added resources to help.
- When will things just go back to normal?
- Short answer here – they will not! Agility is key. Think of the saddle shop owner on the day the auto was invented. Considering a business shift to car seats was likely a good decision that day!
New business ventures are incredibly stressful and chaotic. They can be extremely satisfying, tremendously challenging and a source of deep benefit and pride with the proper mindset, preparation, adaptation, and execution. For further information and a free PDF on this topic visit winmovescoaching.com.
Win Moves Coaching
Gary K. Decker
Certified Professional Coach, Business Leader and Strategic Partner
Helping clients to navigate opportunities that allow them to thrive, Win Moves Coaching offers one-on-one, team, and peer group coaching programs in four primary focus areas: leadership, success, agility, and purpose. Gary has empowered business teams and leaders throughout his accomplished career. He joined the southeastern CT community in 2020 and is eager to work with business owners, leaders, and teams to maximize their success through a powerful, positive, and forward mindset.