Starting a business is a lot harder than most people think.
According to Investopedia, in 2019, the failure rate of startups was around 90%. Research concludes 21.5% of startups fail in the first year, 30% in the second year, 50% in the fifth year, and 70% in their 10th year.
There are many reasons for failure, the most common include money running out, being in the wrong market, lack of research, bad partnerships, ineffective marketing, and not being an expert in the industry.
The Small Business Administration (SBA) defines a small business as an operation with fewer than 500 employees. That means there are a lot of businesses out there that are technically “small” even though they seem very large. These small businesses, as per the definition, make up 47.1% (latest information as of 2017) of the working population in the U.S., so their growth and success are vital to the U.S. economy.1
Parker Beck is a social media specialist based out of NYC and he knows a thing or two about startup businesses.
He started working in the social media industry in 2013 by growing themed Twitter accounts. From there he started growing Instagram accounts amassing a total follower base of 700k+ across all of his social media accounts. Currently, he creates content & marketing campaigns for brands and superstar music artists like Russ and Megan Thee Stallion.
When I asked him, “What holds most entrepreneurs back and how can they get through it?”, he responded, “Getting started is always the hardest part for entrepreneurs. It can be very tough to get over that mental gap of thinking, is this product or idea going to work or will this just be a waste of time and money? It is important to do your marketing research and do the logistical work that goes into running a business before just diving into it.”
One of the main reasons for failure is lack of knowledge and lack of research. This is directly connected to not taking the time to research information online as well as purchasing hardcover books that you can read.
The best entrepreneurs know that the average CEO reads between 40-60 books a year because leaders are readers. So, I asked Parker, “What are some of the best books that you’ve ever read?”, and he told me the following:1. Marketing: Made To Stick by Chip Heath and Dan Heath2. Marketing: Hooked: How to Build Habit-Forming Products by Nir Eyal3. Marketing: Influence: Science and Practice by Robert Cialdini
These books influenced him and enabled him to acquire knowledge that he’s used to successfully grow startups.
When speaking with Parker, I lastly asked him, “What should an early entrepreneur focus on?” and “What do you think holds early entrepreneurs back and how should they get through it?”
He responded, “Early entrepreneurs need to know that the journey is a process, not a destination. Additionally it’s important to take time for your mental, spiritual and emotional health. As much as influencers and public speakers will preach about “the grind”, make sure you are still able to balance your life. Many will preach to have no social life and just grind until you make it, but life is short and full of uncertainty. Make sure you are taking adequate time in your life to experience new things and spend time with those you love. Budget your time properly so you can build that business but also not at the expense of losing out on precious moments.”
If you are an entrepreneur in the beginning stages of your startup take this advice from Parker.
